TCRLA_Public/041101.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, November 1, 2004, Vol. 5, Issue 216

                            Headlines


A N T I G U A   &   B A R B U D A

LIAT: Introduces Drastic Changes to Reduce Costs


A R G E N T I N A

AGRICOLA GANADERA: Court OKs Creditor's Bankruptcy Call
AGROPECUARIA CAPUTO: Proceeds to Liquidate Assets
AEROLINEAS ARGENTINAS: Shareholders OK 2003, 2002 Figures
BELLAS S.R.L.: Gets Green Light for Reorganization
BENEITO INFORMATICA: Gets Liquidation Order

BISCEGLIA SPORT: Reports Submission Set
CENTRO MEDICO: Court Designates Trustee For Bankruptcy
CLAXSON INTERACTIVE: To Provide Broadband Content for Microsoft
CLINICA CENTRAL: Court Deems Bankruptcy Necessary
CONSTRUCTORA IGASAN: Court Declares Company Bankrupt

DESIGN CONSULT: Court Orders Liquidation
F. S. RADAVERO: Court Favors Creditor's Bankruptcy Petition
FLEXI CAMP: Court Designates Trustee For Bankruptcy
J.F. GAS: Initiates Bankruptcy Proceedings
MOLINOS RIO: Sells Russian Asset for $19.3M

PEMAR S.R.L.: Liquidates Assets to Pay Debts
REINO DE BURGOS: Begins Liquidation Proceedings
SERVICIOS INSTAL-AR: Court Rules for Liquidation
TRAFIND S.A.I.C.: Gets Court Ok for Reorganization


B R A Z I L

AES CORPORATION: Increases Net Income in 3Q04
GLOBOPAR: Reaches Debt Accord With Creditors Holding $421M Debt
TELEMAR: Customer Base Reaches 21.4 Million in 3Q04


C H I L E

COEUR D' ALENE: Shelf Registration Statements Declared Effective


E C U A D O R

* ECUADOR: Uncertain Political Climate Leads To Debt Downgrade


M E X I C O

CORPORACION DURANGO: EBITDA Rises 32% from 3Q03
EMPRESAS ICA: Revenues Rise 23% in 3Q04
GALEY & LORD: Court Approves Sale to Patriarch Partners
GRUPO MEXICO: To Pay $55M to Mine Workers
GRUPO MEXICO: EBITDA Doubles Year-on-Year

GRUPO TMM: Posts $13.5M Net Profit in 3Q04
TFM: Reports $175M Net Revenue for 3 Mos. Ending Sep. 30


N I C A R A G U A

* NICARAGUA: Seeks IMF Financial Support


T R I N I D A D   &   T O B A G O

BWIA: Valley Gives Green Light to New Route


V E N E Z U E L A

BELLSOUTH CORP.: TEM Completes LatAm Acquisition
EDC: Closes Sale of $260M 10-Year Senior Notes

     -  -  -  -  -  -  -  -

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

LIAT: Introduces Drastic Changes to Reduce Costs
------------------------------------------------
Troubled Antigua-based carrier LIAT unveiled last week a new
policy aimed at cutting costs as the airline struggles to stay
in business amid crippling debts, the Trinidad Express reports.

From Nov. 15, LIAT will charge its free baggage allowance
applicable to 50 lbs - including weight of cabin baggage - said
Daniel Oliver, commercial director of LIAT.

All baggage over and above the free baggage allowance of 50 lbs
per adult/child, excluding personal items will be charged for at
the appropriate baggage rate, Oliver added.

Furthermore, from December 10 to January 9 during the Christmas
period, all passengers will be restricted to a maximum of two
pieces of checked luggage.

Oliver said this plan has been reviewed and examined and found
to be in the best interest of the airline as customer complaints
will be reduced and more importantly cost will be cut.

He said LIAT tends to lose more if a customer baggage is lost as
the airline ends up spending more money on baggage claims and
chartering flights to carry excess baggage.

"It's a harsh decision but it needs to be done," he said.

LIAT Chief Executive Officer (CEO) Garry Cullen said these
changes are necessary as LIAT's debt continues to escalate with
the increase in fuel prices and the development of a series of
hurricanes.

He said from April 1 to October 15 there was a 42% fuel increase
which amounted to EC$600,000 in additional costs.

Cullen refused to say how much money LIAT needs to survive or
how much is the debt of the Company. He said that two years ago
the debt was $50 million and he hinted that they required at
least 15% of this by the end of this year to put measures in
place.



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

AGRICOLA GANADERA: Court OKs Creditor's Bankruptcy Call
-------------------------------------------------------
Agricola Ganadera Alpa S.A. entered bankruptcy after Judge
Cirulli of Buenos Aires' civil and commercial Court no. 6
approved a bankruptcy motion filed by Mr. Domingo Ibarrola. La
Nacion reports that the Company's failure to pay US$5,129.98 in
debt prompted the creditor to file the petition.

Working with Dr. Mendez Sarmiento, the city's Clerk no. 12, the
Court assigned Ms. Miriam Lewenbaum 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 February 14
next year.

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: Agricola Ganadera Alpa S.A.
         Avenida Belgrano 1370
         Buenos Aires

         Ms. Miriam Lewenbaum, Trustee
         Montevideo 666
         Buenos Aires


AGROPECUARIA CAPUTO: Proceeds to Liquidate Assets
-------------------------------------------------
Judge Cirulli, serving under Court no. 6 of Buenos Aires' civil
and commercial tribunal, declared Agropecuaria Caputo S.A.
bankrupt, says La Nacion. The ruling comes in approval of the
bankruptcy petition filed by the Company's creditor, la
Cooperativa del Milenio Ltda., for nonpayment of US$26,000 in
debt.

Trustee Jorge Podhorzer will examine and authenticate creditors'
claims until February 14, 2005. This is done to determine the
nature and amount of the Company's debts. Creditors must have
their claims authenticated by the said date in order to qualify
for the payments that will be made after the Company's assets
are liquidated.

Dr. Mendez Sarmiento, Clerk no. 12, assists the Court on the
case that will conclude with the liquidation of the Company's
assets.

CONTACTS: Agropecuaria Caputo S.A.
          Hidalgo 821
          Buenos Aires

          Mr. Jorge Podhorzer, Trustee
          Pasaje Del Carmen 716
          Buenos Aires


AEROLINEAS ARGENTINAS: Shareholders OK 2003, 2002 Figures
---------------------------------------------------------
The 2003 and 2002 results of flagship airline Aerolineas
Argentinas have been approved by the majority of its
shareholders, airline spokesman Julio Scaramella said in a
statement Thursday.

Scaramella's statement came two months after the Argentine
government, which holds a 1.34% stake in Aerolineas, asked the
Courts to reject the airline's 2003 results.

According to the Undersecretary of Commercial Air Transport, the
government specifically queried the inclusion of a ARS266-
million ($1=ARS2.98) capitalization of debts by Spain's Air
Comet, saying the links between Air Comet and the Aerolineas
holding Company were unclear.

A judge has yet to rule on the complaint.

But according to Scaramella, "The challenges from the state as a
minority shareholder in no way affect the development of the
Company's business plans, which are being carried forward in
accordance with established projections."

Scaramella said it was "at the very least incongruous" that the
government never objected to Aerolineas' results while it was
running massive losses, yet is disputing results now that the
Company is debt-free and "maintains an optimum operating level."

Aerolineas also characterized as "incongruous" a payment of
ARS8.125 million that the government made to the Company in June
"while the accounts were being disputed."

This payment, which was for the 1.34% stake, had been pending
since 2001, when the airline was still owned by Spanish
government holding Company Sociedad Espanola de Participacion
Industrial. SEPI later sold Aerolineas to a consortium headed by
Spanish travel Company Marsans (GMSN.YY), which controls 98% of
the airline.

CONTACT:  AEROLINEAS ARGENTINAS
          Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
          Phone: (54-11) 4310-3000
          Fax: (54-11) 4310-3585
          E-mail: volar@aerolineas.com.ar
          Home Page: www.aerolineas.com.ar


BELLAS S.R.L.: Gets Green Light for Reorganization
--------------------------------------------------
Judge Fernandez of Buenos Aires' civil and commercial tribunal
Court no. 19 approved the "Concurso Preventivo" petition filed
by Bellas S.R.L., reports local news source La Nacion. The
Company listed assets of US$230,000 and liabilities of
U$114,332.48.

Dr. Johnson, clerk no. 38, assists the Court on the case.

CONTACT: Bellas S.R.L.
         Avenida Cordoba 785
         Buenos Aires


BENEITO INFORMATICA: Gets Liquidation Order
-------------------------------------------
Beneito Informatica S.A. enters bankruptcy protection after
Court no. 4 of Buenos Aires' civil and commercial tribunal, with
the assistance of Clerk no. 6, 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. Ernesto Iob as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on December 6.

CONTACT: Mr. Ernesto Iob, Trustee
         Presidente Peron 1186
         Buenos Aires


BISCEGLIA SPORT: Reports Submission Set
---------------------------------------
Ms. Liliana Maria Montoro, the trustee assigned to supervise the
liquidation of Bisceglia Sport S.R.L., will submit the validated
individual claims for Court approval on February 18, 2005. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report on April 5, 2005.

Infobae reports that Court no. 23 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk no. 45 assists the Court with the proceedings.

CONTACT: Bisceglia Sport S.R.L.
         Montes de Oca 1119
         Buenos Aires

         Ms. Liliana Maria Montoro, Trustee
         Sarmiento 517
         Buenos Aires


CENTRO MEDICO: Court Designates Trustee For Bankruptcy
------------------------------------------------------
Buenos Aires accountant Juan Jose Roberto Esturo was assigned
trustee for the bankruptcy of local Company Centro Medico
Esmeralda S.R.L., relates Infobae. The trustee will verify
creditors' claims until December 7, the source adds.

The city's civil and commercial tribunal Court no. 24 holds
jurisdiction over the Company's case. Clerk no. 8 assists the
Court with the proceedings.

CONTACT: Mr. Juan Jose Roberto Esturo, Trustee
         Reconquista 336
         Buenos Aires


CLAXSON INTERACTIVE: To Provide Broadband Content for Microsoft
---------------------------------------------------------------
Claxson, a multimedia Company providing branded entertainment
content targeted to Spanish and Portuguese speakers around the
world, signed an agreement with Microsoft, world leader in
software development, to provide broadband content to its
Windows Media Player 10 (WMP 10), the new Windows Media Player
version launched worldwide recently.

Through this agreement, Claxson will become the only provider of
video content for Microsoft's new product in Latin America.
Starting in November, WMP 10 will now offer in DVD quality (high
definition -- 1 MBPS) the best programming from Claxson's pay
television channels (such as Infinito, Fashion TV and
Utilisima), as well as a Reuters news channel.

This project uses the El Sitio Digital Channel (ESDC) broadband
platform, which was created by Claxson and has been the leader
in its field in Latin America since 2001. ESDC is the only
entertainment platform geared towards distribution and sale of
broadband content. It includes direct marketing tools, audio and
video administrators, text, images and 3D, allowing companies to
design, implement and manage Internet applications quickly,
efficiently and at a low cost. The companies that are currently
using ESDC services include FiberTel in Argentina and Brasil
Telecom in Brazil, as well as Claxson's pay television channels,
and Claxson's broadcast TV network Chilevision and its leading
radio group in Chile.

Roberto Cibrian, senior vice president of Claxson's Broadband
and Internet Division, said, "It's an honor to participate in
the international launch of the new version of a popular and
successful product such as Microsoft's Windows Media Player. By
providing technology and video programming from our ESDC
platform, we are providing Microsoft with a leading proprietary
technology for the entire region. It's an effective solution
that will satisfy their needs."

Marcos Galassi, NexTVision's CEO and responsible for the digital
distribution of Claxson's programming and ESDC technology in
Brazil, said that "by including the programming and technology
offered by ESDC in the new Windows Media 10, we are creating a
unique precedent in the Brazilian market, since we will be
providing a better quality experience and Premium content to all
Windows Media users in our country."

According to the agreement, ESDC will provide Microsoft with
technology and video content for the new Windows Media Player
10, which will be made available, individually or in packages,
through an electronic licensing system created by Paypal, one of
the most respected electronic payment systems in the world.

Claxson's programming will be renewed every month. At first
there will be 10 hours a month in Spanish and Portuguese. Very
soon, the programming will also include Retro channel's classic
movies. The content available at the launch of Windows Media
Player 10 includes:

    Infinito:
     * Disparen contra Garzon
     * Argentina, santuario nazi
     * Atentado a las Torres Gemelas
     * Tarot, la rueda de la vida
     * Flores y plantas que curan
     * Ser Indigo
     * Combo Ovni #1
     * Pasion y misterio: Gato encerrado
     * Tratamientos alternativos de sanacion
     * Brasilia
     * ?Quien mato a PC Farias?
     * Hackers: los piratas de la red
     * Jack el destripador
     * La exportacion de la macumba
     * Umbanda: la religion que nacio en Brasil
     * Varginha, el Roswell brasileqo
     * Cronica de ovnis: Brasil
     * El camino de Santiago, con Paulo Coelho
     * Rituales satanicos

    Fashion TV:
     * Making of ... Julieta Prandi en la isla de Caras
     * Making of ... Pampita Ardonhain y Florencia Gomez Cordoba
       en Punta del Este
     * Un dia con ... Sofia Zamolo en Paris
     * Un dia con ... Nicole Newman en Nueva York
     * Un dia con ... Geraldine Newman en Miami
     * Un dia con ... Dolores Barreiro
     * FTV Beach #1 y #2

    Utilisima:
     * Velas
     * Jabones
     * Papel Mache
     * Modelado en porcelana fria
     * Pintura sobre tela
     * Panaderia en casa
     * Tecnicas de vitreaux
     * Fragancias
     * Tecnicas de cocina para trabajar el chocolate y el
       caramelo

About Claxson's Broadband and Internet Division

The Broadband and Internet Division groups all of Claxson's
broadband and Internet properties. ESDC is the leader in the
broadband sector and it is the first intelligent multimedia
platform, developed by Claxson, to serve the Iberoamerican
Internet market in the region.

This unit also includes all of Claxson's online contents and
interactive marketing tools, all grouped under the brand El
Sitio.com, as well as its pay television sites, Space, Retro,
I.Sat, Infinito, FTV, MuchMusic, HTV, Venus and Playboy TV and
its interactive formats and on-line versions of the radio
stations of the Broadcasting division.

The Division also operates in conjunction with AOL, the paid
version of Cupido.Net, one of the most popular dating services
on the Internet.

CONTACT: Claxson Interactive Group, Inc.
         Avenida Melian 2752
         Buenos Aires, C1430EYH
         Argentina
         Phone: 011-5411-4546-8000

         Website: http://www.claxson.com


CLINICA CENTRAL: Court Deems Bankruptcy Necessary
-------------------------------------------------
Clinica Central de Especialidades Medicas Privadas S.A., which
was under bankruptcy, begins reorganization on orders from Bell
Ville's civil and commercial Court no. 2.

Infobae relates that the Court, assisted by Clerk no. 4,
appointed Mr. Stalin D. Zapata as trustee on the case. Mr.
Zapata will conduct the credit verification process "por via
incidental."

CONTACT: Clinica Central de Especialidades Medicas Privadas S.A.
         Hipolito Yrigoyen 134 Bell Ville (Cordoba)

         Mr. Stalin D. Zapata, Trustee
         Pio Angulo 255 Bell Ville (Cordoba)


CONSTRUCTORA IGASAN: Court Declares Company Bankrupt
----------------------------------------------------
Judge Gutierrez Cabello, working for Court no. 7 of Buenos
Aires' civil and commercial tribunal, declared construction
Company Constructora Igasan S.A. "Quiebra".  La Nacion says that
the Court approved the bankruptcy petition filed by Mr.
Eleuterio Moron whom the Company failed to pay debts amounting
to U$17.312,19.

The Company will undergo the bankruptcy process with Mr. Augusto
Fernandez as its trustee. Creditors are required to present
their proofs of claims to the trustee for verification before
December 17. Creditors who fail to have their claims
authenticated by the said date will be disqualified from the
payments to be made after the Company's assets are liquidated at
the end of the bankruptcy process.

Dr. Giardinieri, clerk no. 14, assists the Court on the case.

CONTACT: Constructora Igasan S.A.
         Estero Bellaco 230
         Ciudadela
         Province of Buenos Aires

         Mr. Augusto Fernandez, Trustee
         La Rioja 1746
         Buenos Aires


DESIGN CONSULT: Court Orders Liquidation
----------------------------------------
Design Consult S.R.L. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court no. 4 of
Buenos Aires' civil and commercial tribunal. The declaration
effectively prohibits the Company from administering its assets,
control of which will be transferred to a Court-appointed
trustee.

Infobae reports that the Court selected Ms. Elba Gabriela
Hirigoity as trustee. She will be reviewing creditors' proofs of
claims until December 9.

Clerk no. 8 assists the Court on this case that will end with
the disposal of the Company's assets to cover its liabilities.

CONTACT: Ms. Elba Gabriela Hirigoity, Trustee
         Avda Cordoba 1388
         Buenos Aires


F. S. RADAVERO: Court Favors Creditor's Bankruptcy Petition
-----------------------------------------------------------
Mr. Carlos Maccarrone successfully sought the bankruptcy of F.
S. Radavero S.A. after Judge Garibotto of Buenos Aires' civil
and commercial tribunal Court no. 2 declared the Company
"Quiebra," reports La Nacion.

As such, the construction supply firm will now start the
bankruptcy process with Ms. Beatriz Belucci as trustee.
Creditors of the Company must submit their proofs of claim to
the trustee by December 16 for authentication. Failure to do so
will mean disqualification from the payments that will be made
after the Company's assets are liquidated.

Mr. Maccarrone sought the Company's bankruptcy after the latter
failed to pay debts amounting to US$30,000.

Dr. Romero, the city's Clerk no. 4, assists the Court on the
case that will culminate in the liquidation of all of its
assets.

CONTACT: F. S. Radavero S.A.
         Avenida Cordoba 391
         Buenos Aires

         Ms. Beatriz Belucci, Trustee
         Acevedo 217
         Buenos Aires


FLEXI CAMP: Court Designates Trustee For Bankruptcy
---------------------------------------------------
Buenos Aires accountant Jorge Alberto Arias was assigned trustee
for the bankruptcy of local Company Flexi Camp S.R.L. relates
Infobae. Court no. 24 of the city's civil and commercial
tribunal holds jurisdiction over the Company's case.

The trustee will verify creditors' claims until December 7, the
source adds. After that, he will prepare the individual reports,
which are to be submitted in Court on February 21, 2005. The
general report submission should follow on April 4, 2005.

CONTACT: Flexi Camp S.R.L.
         Avda Coronel Roca 2399
         Buenos Aires

         Mr. Jorge Alberto Arias, Trustee
         Avda Rivadavia 1227
         Buenos Aires


J.F. GAS: Initiates Bankruptcy Proceedings
------------------------------------------
Buenos Aires' civil and commercial tribunal Court no. 4 declared
J.F. Gas S.A. "Quiebra," reports Infobae. Mr. Omar Lares, who
has been appointed as trustee, will verify creditors' claims
until December 10.

Clerk no. 8 assists the Court on the case that will close with
the liquidation of the Company's assets to repay creditors.

CONTACT: Mr. Omar Lares, Trustee
         Viamonte 749
         Buenos Aires


MOLINOS RIO: Sells Russian Asset for $19.3M
-------------------------------------------
Argentine packaged food producer Molinos Rio de la Plata
(MOLI.BA) has sold its Russia-based cooking oil business to
Bunge Ltd. (BG) for US$19.3 million.

According to Dow Jones Newswires, the deal, which was signed
through its subsidiary, Molinos International SA, generated a
ARS35-million gain for the South American Company.

"For Molinos, this is a step that permits it to continue
concentrating its strategy of growth in key businesses of the
Company in those regions of the world" where it can reach No. 1
or 2 positions, Molinos said in a statement.


PEMAR S.R.L.: Liquidates Assets to Pay Debts
--------------------------------------------
Pemar S.R.L. will begin liquidation proceedings following the
bankruptcy pronouncement issued by the Court no. 10 of Buenos
Aires' civil and commercial tribunal.

Infobae reports that the bankruptcy ruling places the Company
under the supervision of Court-appointed trustee, Mr. Juan
Carlos Pitrelli. The trustee will verify creditors' proofs of
claims until December 21. The validated claims will be presented
in Court as individual reports on March 4, 2005.

Mr. Pitrelli 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 April 19, 2005.

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

CONTACT: Mr. Juan Carlos Pitrelli, Trustee
         Avda de Mayo 1260
         Buenos Aires


REINO DE BURGOS: Begins Liquidation Proceedings
-----------------------------------------------
Reino de Burgos S.A. of Buenos Aires will begin liquidating its
assets after Court no. 16 of the city's civil and commercial
tribunal declared the Company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed Trustee Rosa Isabel Santos.

The trustee will review claims forwarded by the Company's
creditors until December 27. Once claims are verified, Ms.
Santos will submit the individual reports for Court approval on
March 10, 2005. The general report submission follows on April
21, 2005.

The city's Clerk no. 31 assists the Court on this case.

CONTACT: Ms. Rosa Isabel Santos, Trustee
         Avda Corrientes 6031
         Buenos Aires


SERVICIOS INSTAL-AR: Court Rules for Liquidation
------------------------------------------------
Court no. 1 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Servicios Instal-Ar 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 Mr.
Barg Lajbisz, the court-appointed trustee. Mr. Lajbisz, will
verify creditors' proofs of claims until December 7.

The city's Clerk no. 2 assists the Court on this case that will
end with the disposal of the Company's assets in favor of its
creditors.

CONTACT: Mr. Barg Lajbisz, Trustee
         Paraguay 2630
         Buenos Aires


TRAFIND S.A.I.C.: Gets Court Ok for Reorganization
--------------------------------------------------
Trafind S.A.I.C. will begin reorganization proceedings following
the approval of its petition by Court no. 18 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.

Mr. Ruben Oscar Conti will oversee the reorganization
proceedings as the Court-appointed trustee. He will verify
creditors' claims until November 26. Afterwards, the validated
claims will be presented in Court as individual reports on
February 10, 2005.

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 March 24, 2005.

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 September 5, 2005.

CONTACT: Mr. Ruben Oscar Conti, Trustee
         Avda Corrientes 1967
         Buenos Aires



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

AES CORPORATION: Increases Net Income in 3Q04
---------------------------------------------
The AES Corporation (NYSE: AES) continued its strong operating
performance for the year and reported third quarter net income
of $140 million, or $0.21 per diluted share, compared to $76
million, or $0.12 per diluted share, last year.

HIGHLIGHTS:

- Revenues for the quarter increased 9% to $2,423 million,
compared to $2,231 million in 2003.

- Gross margin increased 8% to $731 million compared to $676
million in 2003.

- Income before income taxes and minority interest increased to
$263 million from $131 million in 2003. This represents a 28%
increase excluding asset impairments of $75 million in 2003.

- Diluted earnings per share from continuing operations was
$0.20 versus $0.10 in 2003. The 2004 results include an increase
in the Company's effective tax rate arising from higher
distributions from and earnings of certain non-US subsidiaries.

Adjusted earnings per share* for the third quarter of 2004 was
$0.21, compared to $0.26 per share for the third quarter 2003
with the difference primarily due to the higher tax rate in
2004.

Adjusted earnings per share excludes the effects of gains or
losses from risk management mark-to-market accounting, certain
foreign currency transactions, significant net asset gains or
losses and impairments and early retirement of recourse debt.

"I am pleased with the strong performance for the first nine
months of this year. We're achieving double digit growth in
gross margin and adjusted earnings per share and continuing to
see improvements in the performance of our businesses," said
Paul Hanrahan, President and Chief Executive Officer. "We expect
this momentum to continue through the rest of 2004 and have
increased our guidance accordingly."

Updated Financial Guidance

AES increased its 2004 adjusted earnings per share guidance to
$0.68 from $0.64. It also reaffirmed its 2004 guidance of $0.62
for diluted earnings per share from continuing operations,
excluding the ($0.03) per share impact of the Chile financial
restructuring. This results in net guidance of $0.59 per diluted
share from continuing operations. The difference of $0.09 per
share is attributable to gains or losses from risk management
mark-to-market accounting, certain foreign currency
transactions, significant net asset gains or losses and
impairments and early retirement of recourse debt included in
diluted earnings per share from continuing operations.

Revenue is now expected to increase 11% for the year, compared
to prior guidance of 7%. Further information on the Company's
updated and prior financial guidance can be found in the AES
Third Quarter 2004 Financial Review presentation at www.aes.com.

THIRD QUARTER SEGMENT HIGHLIGHTS

- Contract Generation revenues grew 11% to $906 million from
$817 million in 2003, due primarily to increased contract prices
and new projects on line, partially offset by lower volumes
related to a plant upgrade underway in Hungary. Gross margin
improved 14% to $372 million from $327 million over the prior
quarter. Gross margin as a percent of sales improved to 41% from
40% over the prior quarter.

- Competitive Supply revenues grew 15% to $265 million from $230
million in 2003, resulting from increased demand, new projects
on line and higher realized prices in Argentina and Kazakhstan
that were partially offset by lower prices in New York. Gross
margin increased 8% to $64 million from $59 million last year.
Gross margin as a percent of sales decreased to 24% from 26% in
the prior quarter.

- Large Utilities revenues increased 3% to $938 million from
$908 million in 2003, driven by tariff increases. Excluding the
estimated impacts of foreign currency translation, revenues
would have increased approximately 7% over the prior quarter.
Gross margin declined 4% to $234 million from $244 million in
the prior quarter, attributable to higher fixed costs and
negative impacts from foreign currency translation.

Gross margin as a percent of sales also declined to 25% from 27%
in the prior quarter.

- Growth Distribution revenues increased 14% to $314 million
compared to $276 million in 2003, helped by increased demand and
higher tariffs. Gross margin, also aided by lower operating
costs, increased 33% to $61 million compared to $46 million a
year ago. Gross margin as a percent of sales increased to 19%
from 17%.

NINE MONTH FINANCIAL HIGHLIGHTS

- Revenues increased 13% to $6,943 million from $6,134 million
in the prior year, benefiting from higher prices and demand,
foreign currency translation effects and new plants on line.
Excluding the estimated impacts of foreign currency translation,
revenues would have increased approximately 12% year-over-year.

- Gross margin showed significant improvement, increasing 15% to
$2,059 million compared to $1,789 million in last year's first
nine months. This increase was largely attributable to increased
revenues and other operating performance improvements. Gross
margin as a percent of sales also improved to 30% versus 29% in
2003.

- Interest expense declined 6% to $1,423 million compared to
$1,518 million in the prior year, reflecting the benefits of
financial restructuring and debt retirement, partially offset by
higher short-term interest rates and new project debt.

- Income before taxes and minority interest was $649 million, up
14% over the $569 million for the prior year, due to higher
gross margin and lower interest expense in 2004 as well as asset
impairments of $106 million in 2003, partially offset by net
foreign currency transaction losses.

- The effective tax rate was 31% compared to 28% a year ago
reflecting higher US taxes related to distributions from and
earnings of certain non-US subsidiaries.

- Diluted earnings per share from continuing operations for the
nine months ended September 30, 2004 were $0.42 compared to
$0.56 for the 2003 period. Adjusted earnings per share* for the
nine months ended September 30, 2004 increased 16% from $0.45 to
0.52.

- Net income was $226 million compared to $40 million in the
first nine months of 2003. Net income in the 2003 period was
adversely affected by the impact of discontinued operations,
including several development project write-offs.

- Net cash from operating activities was $1,109 million, $23
million higher than in the prior year. Excluding $29 million of
cash flows from discontinued operations included in 2003, net
cash from operating activities would have increased $52 million
from the prior year. In 2004, improved operating income was
partially offset by increased working capital which was driven
by Eletropaulo payments for outstanding payables from the period
prior to its debt restructuring.

- Recourse debt has been reduced by $469 million and total
recourse and non-recourse debt reduced by $1,128 million since
the beginning of the year, reflecting completion of several
financial restructuring transactions and continued debt
repayments.

About AES

AES is a leading global power company, with 2003 revenues of
$8.4 billion. AES operates in 27 countries, generating 45,000
megawatts of electricity through 112 power facilities and
delivers electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

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

To view financial statements:
http://bankrupt.com/misc/AES.htm

CONTACTS: The AES Corporation
          Media Contact:
          Mr. Robin Pence
          Phone: 703-682-6552
                  or
          Investor Contact:
          Mr. Scott Cunningham
          Phone: 703-682-6336

          Web Site: http://invest@aes.com/


GLOBOPAR: Reaches Debt Accord With Creditors Holding $421M Debt
---------------------------------------------------------------
Brazilian media group Globo Comunicacoes e Participacoes SA
(Globopar), which defaulted on its US$1.8 billion debt in 2002,
struck an agreement in principle with creditors holding US$421
million of debt, reports Reuters.

The agreement is part of a restructuring unveiled by the Company
in October 2002. The proposal offers creditors cash for the debt
they are owed at a 30% to 50% discount, or alternatively offers
that they convert their debt for new bonds issued in a variety
of currencies and terms.

Creditors supporting the debt restructuring include agent bank
Citibank, N.A., as well as Bank of America N.A. and domestic
Brazilian banks.

With an aim to complete its restructuring in the first quarter
of 2005, Globopar is now preparing to canvass approval for the
rescue plan among its creditors at large.

"We're now preparing final documentation to get formal bank and
bond creditor approval," a source close to the Company told
Reuters on Thursday.

Globopar is the holding company for TV Globo and other assets.
This year, it sold a minority stake in cable TV network Net
Servicos to Mexico's Telmex, and last year a majority stake in
Sky Brasil to Rupert Murdoch's News Corporation as part of the
debt restructuring. After the debt restructuring, Globopar and
TV Globo will merge.


TELEMAR: Customer Base Reaches 21.4 Million in 3Q04
---------------------------------------------------
1. HIGHLIGHTS OF THE QUARTER:

- Our customer base increased by 758 thousand clients in the
quarter, to reach 21.4 million:

Wireline: 15.2 million lines in service (+0.2% qoq)
Wireless: 5.7 million subscribers (+12.7%)
Velox (ADSL): 429 thousand subscribers (+24.3%)

- Net revenues amounted to R$ 4,084 million, up 7.5% from 2Q04
and 8.3% from 3Q03. Average revenue per user (ARPU) in the
quarter was equal to R$ 79 for wireline and R$ 23 for wireless
services.

- Consolidated EBITDA totaled R$ 1,714 million, up 11.0% from
2Q04, while the consolidated margin stood at 42.0% (2Q04 -
40.7%). Year to date, EBITDA totals R$ 4,939 million (+6.3%
compared to the same period of 2003), with a 42.7% margin.

- Net financial expenses totaled R$ 418 million for the quarter
(8.7% lower than 2Q04 figures).

- Net income for the quarter amounted to R$ 159 million, or R$
0.42 per share (US$ 0.14 per ADR). For the nine-month period
ended September 30, 2004, net income totaled R$ 458 million,
compared to a R$ 301 million loss for the same period of the
previous year.

- Capital expenditures (capex) totaled R$ 599 million, equal to
14.7% of net revenues, amounting to R$ 1,134 million on a year-
to-date basis (9.8% of net revenues).

- Free cash flow after capex amounted to R$ 828 million,
reaching R$ 3,097 million for the nine-month period ended
September 30, 2004 (24.5% increase on the same period of 2003).

- At the end of September/04, net debt was equal to R$ 7,000
million (1.1x our 12-month EBITDA), decreasing by 4.8% and 19.1%
from the position at the end of June/04 and Sep/03,
respectively.

- During the quarter, TNL and TMAR made expenditures under the
Share Buyback Program of R$ 188 million. For the year through
09/30/04, repurchases have totaled R$ 209 million, representing
15.6% of the total shares (TNL/TMAR) allocated under the
program.


2. OPERATING PERFORMANCE REVIEW:

2.1 CUSTOMER BASE

At the end of the quarter, Telemar had 21.395 million customers,
including 15.226 million fixed-line, 5.740 million mobile and
429 thousand broadband (ADSL) customers.

In comparison with 3Q03, the Company grew in all segments, with
net additions of 3.325 million clients over the past 12 months,
as follows: wireless - 2.891 million (+101.5%), broadband
subscribers - 283 thousand (+193.8%), and wireline - 151
thousand (+1.0%).

2.2 WIRELINE AND BROADBAND

The installed plant remained virtually unchanged from the
previous quarter and comprised 17.348 million lines, of which
15.226 million are in service (+0.2% during the quarter),
including 662 thousand public telephones. The utilization rate
was 87.8% and the digitalization rate of the network was 99.0%.

During 3Q04, 779 thousand lines were activated, while 772
thousand were disconnected, with net additions of 27 thousand
lines in the period. The wireline plant in service grew by 1.0%
on Sep/03. The average plant comprised 15.210 million lines
(+1.5% on 3Q03).

ADSL (Velox) activations maintained the strong growth rate seen
in recent quarters, reaching 429 thousand subscribers at the end
of 3Q04 (+24.3% qoq), with net additions of 84 thousand
customers in the quarter and 212 thousand and year-to-date. At
the end of 3Q04, the Velox customer base accounted for 2.8% of
the total fixed lines in service (2.3% in 2Q04 and 1.0% in
3Q03).


2.3 WIRELESS

At the end of 3Q04, Oi had 5.740 million customers, with an
estimated market share of 22.1% in its region, reflecting a
growth of 12.7% qoq and 101.5% yoy.

During the quarter, 1.127 million handsets were sold to our
dealers (773 thousand in 2Q04), while 941 thousand subscribers
were activated and 294 thousand were disconnected. This leads to
a net addition of 647 thousand subscribers in the quarter (2Q04
- 685 thousand), 13.1% of which were under postpaid plans. Oi
represented for 35.1% of the net additions in its operating
region in the 3Q04.

The 294 thousand disconnections represent a churn rate of 5.4%
for the quarter, compared to 6.2% in 2Q04.

The customer mix at the end of the period comprised 85.5%
customers under prepaid and 14.5% under postpaid plans. The
average base for the quarter included 5,416 thousand customers
(+14.0% compared to the 2Q04).

2.4 CONTACT CENTER

At the end of the quarter, Contax had 15,952 attendant positions
(PA's), growing by 7.2% and 43.2% on Jun/04 and Sep/03,
respectively.

3. CONSOLIDATED RESULTS

3.1 REVENUES

Consolidated gross revenues for 3Q04 totaled R$ 5,673 million,
up by R$ 358 million (6.7%) on 2Q04, primarily due to local,
long- distance and public telephone service tariff increases in
the 3Q04, in addition to the continuing growth seen in the data
transmission and wireless services.

In comparison with 3Q03, gross revenues increased by R$ 521
million (10.1%), driven by the growth in wireless, long-distance
and data transmission services, in addition to the previously
mentioned tariff increase.

Consolidated net revenues amounted to R$ 4,084 million, growing
by 7.5% and 8.3% on 2Q04 and 3Q03, respectively. Year to date,
net revenues totaled R$ 11,571 million, a 12.0% increase on the
same period of the prior year.

3.1.1 Wireline

Gross revenues from wireline services increased by 5.3% on the
previous quarter, basically as a result of the tariff adjustment
in the period and the expansion in data services. Excluding the
tariff effect, real growth would have been of approximately 1.2%
quarter over quarter.

The 5.1% increase in comparison with 3Q03 was mainly due to the
expansion in data, long distance and public telephone services.

Local

Local fixed-to-fixed (monthly subscription, pulse, installation
fee): gross revenues from local services increased by 8.4% on
2Q04, chiefly due to the tariff adjustment of the local basket,
in Jul/04 (6.9%) and in Sep/04 (4.4%). Compared to 3Q03, local
revenues grew by 3.1% due to increased subscription fees.

- Revenues from Monthly subscriptions amounted to R$ 1,524
million in 3Q04, surpassing the revenues for 2Q04 and 3Q03 by
7.5% and 6.2%, respectively due to the tariff increases in 3Q04.

- Revenue from Pulses reached R$ 702 million, an 11.8% increase
on 2Q04. In addition to the rate adjustments, traffic increased
by 3.7% during the quarter compared to 2Q04. Compared to 3Q03,
these revenues declined by 1.2%, driven by decreased traffic (-
8.9%), partly due to the migration of internet users (dial-up
connection) to broadband access (ADSL), where the customer base
increased by 283 thousand in the period.

Local fixed-to-mobile calls (VC1): these revenues totaled R$ 695
million in the period, in line with the previous quarter. When
compared to 3Q03, the 5.2% reduction stemmed from the decrease
in traffic (-9.9%) due to the migration to mobile-to-mobile
calls, partially offset by the rate increase in Feb/04.

Long-distance

- Long-distance - Intra and inter-regional, international: The
3.8% increase was mainly due to the tariff adjustment in the
3Q04. In spite of the increasing competition in the long-
distance market (SMP and new entrants), the Company has been
able to deliver traffic increases in all segments, except for
the intra-state segment, where regulatory changes reduced the
number of local areas and resulted in migration from LD to
local.

In relation to 3Q03, the 17.8% growth (R$ 113 million) was
driven by long-distance revenues from wireless phones, which
accounted for R$ 70 million of the changes for the period.

For the nine-month period ended September 2004, revenues
increased by 30.3% on the same period of the previous year,
mainly due to market share gains in long distance calls
originated in Region I.

- Fixed-to-mobile calls (VC 2/3): revenues remained stable in
comparison with the previous quarter. Compared to 3Q03, revenues
were up 19.5%, chiefly due to the increased traffic in the
period (17.6%), as well as the tariff adjustment in Feb/04.

- Remuneration for network usage: decreased by 5.2% (R$ 15
million) quarter-on-quarter, as a result of the rate reduction
implemented in the quarter, due to the application of the
productivity factor (2004 - 20%), over the readjustment index
(IGP-DI).

Compared to 3Q03, these revenues declined by 23.9%, mostly
because of our increased share in the long-distance market, the
new points of presence of other telecommunication companies in
Region I, as well as, the previously mentioned tariff decrease.

- Data transmission services: these revenues increased by 8.5%
R$ 32 million) on 2Q04, as a result of the continuing sales
growth of ADSL services (R$ 20 million), and higher revenues
from leased lines c EILD (R$ 13 million).

Compared to 3Q03, revenues from data services continued to
improve significantly (+32.8%, R$ 100 million), driven by the
217.3% increase in sales of ADSL (R$ 72 million), as well as
package switching and frame relay services (R$ 21 million).

Revenues from ADSL services (Velox) accounted for 26.0% of the
data transmission revenues for the quarter.

- Public telephones (PT): these revenues increased by 13.4% on
the previous quarter, due to the rate adjustment and higher
phone card sales. Compared to 3Q03, the 26.7% increase in PT
revenues arose from the increased sales of phone cards and
higher use of the 31 dialing code for long distance calls.

3.1.2 Wireless

Gross revenues from wireless services amounted to R$ 589
million, growing by 19.4% (R$ 95 million) compared to 2Q04,
chiefly due to the increased handset sales (R$ 53 million) and
the growth in service revenues (R$ 42 million).

Consolidated revenues from remuneration for the use of the
wireless network, totaling R$ 59 million after elimination of R$
128 million relating to TMAR "C which was 6.1% above 2Q04
levels.

In comparison with 3Q03, consolidated wireless revenues
increased by 61.8%. Service revenues grew by 78.2%, while the
average customer base expanded by 113.1%, reflecting the change
in the method used for network usage remuneration between
wireless operators (bill & keep) and in the customer mix during
the period (prepaid and postpaid customer bases grew by 127.0%
and 56.6%, respectively). Revenues from the resale of handsets
increased 41.7% in the period.

Gross revenues from Oi's mobile services amounted to R$ 717
million in the quarter. Gross service revenues (excluding resale
of handsets) amounted to R$ 486 million, 10.6% higher than in
the 2Q04, compared to growth of 14.0% in the average customer
base.

The average revenue per user (ARPU) reached R$ 22.90, down 4.2%
from the previous quarter (R$ 23.90). The decrease in ARPU for
the quarter is related to a reduction in interconnection
revenues (and costs) arising from the migration of Telemig and
Tele Norte Celular to SMP, the adoption of the 'bill & keep'
method of payment, and the relative stability of revenues from
fixed-to-mobile interconnections, in spite of the strong growth
in the average customer base.

Revenues from data wireless services totaled R$ 27 million
(+17.4% qoq), equal to 5.6% of Oi's service revenues during
3Q04.
Net revenues from the resale of 1.127 million handsets (+45.8%
qoq) amounted to R$ 172 million (+29.7% on 2Q04). The atypical
growth in the volume of handsets sold during the quarter,
particularly in Sep/04, stems from a number of our dealers, who
placed higher orders in anticipation of the year-end selling
season. Handset sales are contractually recognized upon title
transfer to the dealers.

3.1.3 Contact Center

During the 3Q04, Contax posted gross revenues of R$ 188 million,
increasing by 6.6% and 58.0% on 2Q04 and 3Q03, respectively.
Compared to the prior quarter, the growth is chiefly due to the
increased operations of new clients. Compared to the same period
of the previous year, nearly 78.7% of the R$ 69 million increase
was due to the acquisition of new customers, such as Orbitall,
Tecban, Losango and Banco BMG.

During the first nine months of 2004, Contax posted gross
revenues of R$ 500 million, 63.4% above the amount earned in the
same period of the previous year. Considering only clients ex-
Telemar group, revenues were 171.7% higher than in the same
period of 2003.

3.1.4 Revenue Breakdown

The chart below depicts changes in the breakdown of consolidated
gross revenues for 3Q04 compared to the same period of last
year. Once again, increases were seen in the share of wireless
services, to 10.4% (from 7.1% in 3Q03), long-distance, to 16.1%
(from 15.0% in 3Q03) and data, to 7.1% (from 5.9% in 3Q03), and
a relative drop in local wireline fixed-to-fixed services to
40.0% (from 42.7% in 3Q03) and fixed-to-mobile services (VC1) to
12.2% (14.2% in 3Q03) and network usage, to 4.9% (from 7.1% in
3Q03).

3.2 OPERATING COSTS AND EXPENSES

Operating costs and expenses (ex-depreciation and amortization)
grew by 5.1% (R$ 116 million) on 2Q04. The increase of handsets
sales during the quarter accounted for R$ 58 million of the
increase, while higher interconnection costs represented another
R$ 29 million.

When compared to 3Q03, the growth was 12.9% (R$ 271 million),
primarily due to the increased costs of third-party services (R$
81 million) - in particular sales commissions and plant
maintenance - mobile handsets (R$ 68 million), provisions for
contingencies (R$ 55 million) and personnel (R$ 43 million).

- Interconnection: costs increased by 4.7% (R$ 29 million) on
2Q04, chiefly due to the increased traffic in the long-distance
market, on account of wireless-originated long distance calls,
and interregional calls. Interconnection costs were equal to
27.5% of total operating costs and expenses in 3Q04 (2Q04 -
27.6%; 3Q03 - 30.3%).

Compared to 3Q03, the increase was 2.5%, where the mobile
interconnection tariff adjustment implemented in Feb/04 was
largely offset by the reduction in fixed-to-mobile traffic
(9.9%).

- Personnel: expenses grew by 2.6% (R$ 7 million) on 2Q04,
primarily as a result of the increase in Contax's staff (7.1%),
in line with the expansion in the number of attendant positions
(PA's) for the period (7.2%). The employee/PA ratio at Contax
remained stable, compared to the previous quarter (2.1x).

The 18.3% increase in personnel expenses (R$ 43 million),
relative to the 3Q03, was mainly due to the expansion in contact
center services, with a R$ 41 million impact in the period, as
the number of Contax employees increased 32.0%. On the other
hand, the increased synergies between the wireline and wireless
operations (TMAR/Oi) provided for a 7.5% reduction in the staff
of these companies, in spite of the strong growth in the
customer base during the period.

- Handset costs and Other (COGS): increased by 26.1% compared to
2Q04. The volume of handset sales, however, grew by 45.8% in the
period, reflecting lower subsidies in 3Q04. Compared with 3Q03,
the cost increase amounted to 32.1%, also as a result of the
expansion in handset sales (44.9%).

- Third-party Services: increased by 1.2% quarter-on-quarter (R$
7 million), driven by higher costs with advisory and legal
counsel services (R$ 8 million). Compared to 3Q03, the increase
was 15.5% (R$ 81 million), chiefly on account of higher spending
with sales commissions (R$ 25 million), plant maintenance (R$ 24
million) and mailing and collection expenses (R$ 13 million).

- Marketing expenses: grew by 6.4% and 17.9% on 2Q04 and 3Q03,
respectively. Expenses with media, promotions and events in
connection with wireline product/services, such as ASDL and long
distance, were the main culprits for this change in both periods
under review.

- Provisions for doubtful accounts - PDA: increased by R$ 8
million (5.9%) on the 3Q04, accounting for 2.5% of consolidated
gross revenues for the quarter (2Q04 - 2.5%; 3Q03 - 3.1%). At
Oi, PDA levels for the quarter represented 1.6% of gross
revenues (2Q04 - 2.3%), while at TMAR (fixed line) PDA was equal
to 2.6% of gross revenues (2Q04 - 2.5%).

In the first nine months of 2004, consolidated PDA was 2.8%
compared to 3.2% in the same period of last year.

- Other operating expenses (revenues): net expenses decreased by
R$ 2 million relative to the previous quarter, due to the larger
bonuses and discounts achieved (R$ 11 million) and a recovery of
expenses (R$ 21 million), which compensated for the higher
provisions for contingencies (R$ 13 million) and tax expenses
(R$ 9 million).

3.3 EBITDA

Consolidated EBITDA amounted to R$ 1,714 million, with a margin
of 42.0% (2Q04 - 40.7%; 3Q03 - 44.3%).

TMAR's consolidated EBITDA was R$ 1,675 million (+12.3%% and
+2.5% on 2Q04 and 3Q03, respectively). EBITDA margin for the
period stood at 41.7%, versus 39.9% in 2Q04.

- Oi's EBITDA was a negative R$ 15 million, with a -2.4% margin
(2Q04 - R$ 18 million and 3.3% margin). The 3Q04 result was
impacted by a non-recurring charge of R$ 24 million in
connection with PDA for prior periods for long-distance services
outside Region I (fixed line). In the absence of this change,
EBITDA would have reached R$ 9 million (a 1.5% margin). The
lower margin in comparison with 2Q04 is explained by the
increase in handset sales, and related costs, which impacted
EBITDA margin by 2.0 percentage points.

- Contax's EBITDA for the quarter amounted to R$ 12 million,
with a 7.1% margin (2Q04 - 10.0%; 3Q03 - 13.2%). The reduction
was due to costs incurred from new contracts implemented, as
well as a one-off expense ("abono") negotiated with the
respective labor union for Contax's employees.

3.4 DEPRECIATION / AMORTIZATION

Depreciation and amortization charges totaled R$ 885 million,
decreasing by 0.2% and 3.2% on 2Q04 and 3Q03, respectively. Year
to date, the expenses amounted to R$ 2,673 million, down 6.0%
from the same period of 2003,

3.5 EBIT

Earnings before net financial expenses and taxes (EBIT) reached
R$ 824 million for the quarter, up 24.2% and 7.0% from 2Q04 and
3Q03, respectively. The increased EBITDA and reduced
depreciation charges for the quarter were the main drivers
behind the improvement.

Year to date, EBIT stands at R$ 2,270 million, growing by 22.4%
on 9M03, primarily due to the decline in depreciation and
amortization charges. It should be pointed out that during the
same period, EBITDA increased by 6.3%.

3.6 FINANCIAL RESULTS

Net financial expenses amounted to R$ 418 million in 3Q04, down
R$ 40 million from 2Q04, as a result of revenues of R$ 180
million and expenses of R$ 598 million. Financial Revenues grew
by R$ 19 million on the previous quarter, due to the higher
average balance of cash and short-term investments (+9.2%).

Financial Expenses declined by R$ 21 million on the prior
quarter. The main items are as follows:

(i) Interest on loans and financing basically in line with the
previous quarter (+ R$ 2 million).

(ii) Exchange results on loans and financing with net reduction
of R$ 46 million in the quarter,
arising from:

(a) Monetary variation revenues of R$ 655 million, due to
exchange variation revenue on foreign currency debt (R$ 674
million), brought about by the 8% appreciation of the Real in
the quarter, against expenses of R$ 490 million in the 2Q04,
when the Real devaluated by 6.8% - besides monetary variation
expenses of R$ 19 million (in line with 2Q04);
(b) Exchange rate swap results of R$ 799 million, arising from
expenses of R$ 539 million from exchange variations in 3Q04, as
a result of the above mentioned appreciation of the Real
compared to revenues of R$ 598 million in the 2Q04 and interest
expenses based on local interest rates (CDI), amounting to R$
260 million (2Q04 - R$ 279 million).

(iii) Other financial expenses increased by R$ 23 million
compared to 2Q04, mainly due to higher bank charges, interest on
taxes, monetary restatements and other expenses (R$ 74 million),
partly offset by a reduction in taxes and contributions on
financial income (R$ 51 million).

3.7 NET INCOME

Net income for the quarter amounted to R$ 159 million (compared
to R$ 78 million in 2Q04 and a loss of R$ 24 million in 3Q03),
equivalent to earnings of R$ 0.42 per share (2Q04 - R$ 0.20),
and approximately US$ 0.14 per ADR, excluding shares held in
treasury.

Year to date, consolidated net income totals R$ 458 million -
compared to a loss of R$ 301 million in the same period of 2003
- equivalent to an EPS of R$1.20.

4. DEBT

Consolidated gross debt totaled R$ 11,863 million at the end of
the quarter (-2.8% qoq), of which 70% is denominated in foreign
currencies. The consolidated position of cash and cash
equivalents reached R$ 4,863 million.

It should be pointed out that, since the beginning of the
current Share Buyback Program (Jun/04), treasury stock acquired
amounted to R$ 209 million, of which R$ 188 million during 3Q04.
At the end of the quarter, cash and equivalents exceeded short-
term debt by 70.8%. Consolidated net debt reached R$ 7,000
million at the end of the quarter, down R$ 355 million from 2Q04
(4.8%) and R$ 1,655 million from 3Q03, representing a 19.1%
reduction in the period.

At the end of 3Q04, local currency loans amounted to R$ 3,563
million (30% of the total indebtedness), comprising R$ 2,113
million due to BNDES, at an average cost of TJLP + 4.4% p.a. and
R$ 1,271 million related to non-convertible debentures, bearing
interest at CDI + 0.7% p.a., maturing in 2006.

Foreign currency loans, in the amount of R$ 8,300 million -
including swap results of R$ 996 million - bear interest at
contractual average rates of 5.3% p.a. for transactions in U.S.
dollars, 1.5% p.a. fixed for transactions in Japanese yen, and
10.9% p.a. for a basket of currencies (BNDES). Approximately
73.8% of the original foreign currency loans were subject to
floating interest rates.

Of the total foreign currency debt, approximately 95% had some
kind of hedge, being 78.5% in foreign exchange swap transactions
(87% of which contracted through final maturity of the related
debts), and 16.5% in financial investments linked to exchange
variations. Under the exchange swap transactions, exposure to
foreign currency fluctuations is transferred to local interest
rates (CDI). The average cost of swap transactions, at the end
of the quarter, was equal to 100.4% of the CDI rate (average CDI
for 3Q04 was 15.8%).

During 3Q04, total funds raised amounted to R$ 644 million. TMAR
obtained R$ 244 million in funds from a bank syndicate arranged
by ABN Amro Bank, for the wireless capex program. Oi signed an
eight-year loan agreement with BNDES, in the amount of R$ 663
million, bearing interest at TJLP + 4.5% p.a., to finance its
capex program for 2003/2005. During the quarter, R$ 400 million
was drawn under this line.

Amortization in the quarter totaled R$ 1,263 million (2Q04 - R$
684 million), of which R$ 909 million relate to principal
repayments (2Q04 - R$ 377 million) and R$ 354 million refer to
cash interest expenses (2Q04 - R$ 307 million).

At the end of the quarter, the amount of loans owed by TMAR to
TNL was R$ 1,205 million, down 19.8% from the end of 2Q04.

5. CAPITAL EXPENDITURES

During the quarter, Capex totaled R$ 599 million, of which R$
369 million was allocated to the wireline and R$ 209 million to
the wireless business. Year to date, Capex amounts to R$ 1,134
million, representing 9.8% of consolidated net revenues (9M03 -
7.5%).

6. CASH FLOW

The consolidated cash flow from operations for the quarter
amounted to R$ 1,428 million (2Q04 - R$1,897 million). Free cash
flow after Capex totaled R$ 828 million (compared to R$ 1,560
million in 2Q04 and R$ 1,423 million in 3Q03).

The negative variation in working capital quarter-over-quarter,
of R$ 441 million, is due to several factors, including:

a) Change in accounts receivable (R$ 154 million), as a result
of the gross revenue increase in 3Q04;

b) Deferred and recoverable taxes (R$ 155 million) - Income tax
and social contribution prepayments amounted to R$ 48 million in
3Q04, while in 2Q04 the Company availed itself of ICMS (value-
added tax) credits of R$ 70 million;

c) Other Assets (R$ 104 million) - This refers basically to an
extraordinary revenue of R$ 107 million, in 2Q04, arising from
the non-exercise of a call option on BCP.

Additionally, the Company disbursed R$ 188 million in 3Q04,
amounting R$209 million up to 9/30/04, with respect to the Share
Buyback Program.

During the first nine months of the year, the consolidated cash
flow after Capex reached R$ 3,097 million, compared with R$
2,487 million in the same period of the prior year (+24.5%).

7. MAIN EVENTS OF THE QUARTER

Telemar's IR Team ranks first in Latin America Telecom industry
The 2004 Institutional Investor survey selected Telemar's
Investor Relations (IR) team as the best in its ranking of the
Telecom sector in Latin America, based on the opinions of both
buy-side and sell-side professionals at the largest
banks/brokers covering the industry. In this survey, our team
ranked fourth in 2002 and second in 2003.

This recognition reinforces the commitment of Telemar's IR Team
to fair disclosure practices based in quality, availability,
swiftness and accuracy of information provided by the Company to
analysts, investors and other members of the investment
community.

Tariff adjustment

In accordance with a decision by the Supreme Court, the
application of IGP-DI index was reinstated to adjust tariffs as
of June/2003, with the difference being applied in two
installments against the tariffs on 6/30/2004.

The difference amounted to 8.7% for the local basket and 10.9%
for long-distance services. On 9/1/2004, the Company applied the
first installment on the adjustment, of 4.4% for the local
basket and 5.1% for long-distance tariffs. The second
installment will be applied on 11/1/2004.

For more details, please access:
http://www.telemar.com.br/docs/tariffs_sept_2004.pdf

Distribution of Interest on Capital (IOC) of Telemar Norte Leste
(TMAR)

On 9/27/2004, the executive board of TMAR authorized the
appropriation of Interest on Capital (IOC) in the amount of R$
220 million, to be applied to mandatory dividends to be declared
for fiscal year 2004.

Shares traded under unit quotations (reverse stock split)
Effective 8/30/2004, TNL and TMAR shares are traded on a per
unit basis. As of that same date, each Tele Norte Leste ADR
(TNE) is represented by one preferred share.

For more details, please access:
http://www.telemar.com.br/docs/rslipt2004.pdf

Auction of fractional shares arising from share grouping On
10/14/2004, lots of fractional shares arising from the share
grouping process (reverse stock split), approved by TNL and TMAR
shareholders at the special shareholders' meetings held on
5/24/2004 and 5/13/2004, respectively, were auctioned on the Sao
Paulo Stock Exchange.

The proceeds of the shares auctioned were made available to the
respective shareholders as of October 26, 2004.

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

Telemar reinstates term for PNB share conversion

On 10/18/2004, the Board of Telemar Norte Leste (TMAR) approved
the reinstatement of the period for conversion of preferred "B"
shares (TMAR6) into preferred "A" shares (TMAR5), at the ratio
of one PNA to each PNB held. The conversion term began on
October 20 and will last till November 19, 2004.

BNDES approves Oi financing

A direct financing from BNDES in the amount of R$ 663 million
was approved for Oi on 8/2/2004, to finance its Capex program
2003/2005. The transaction has an eight-year term, including a
1.5 year grace period, bearing interest of TJLP plus 4.5% per
year.

To see more details:
http://www.telemar.com.br/docs/Oi_BNDES_loan_2004.pdf

Telemar leads the long-distance market

Anatel disclosed traffic data for June 2004, showing that
Telemar leads the national long-distance market, with a 26.6%
market share in total Long Distance traffic in Brazil.

Oi expands GPRS coverage to its entire region

Oi announced that by December 2004 its entire network will be on
GPRS, i.e. supporting high speed data transmission. At present,
the service is available in the state of Rio de Janeiro and in
six capital cities of states within the region.

The reason behind this expansion is the growth in data traffic,
in particular as a result of "Mundo Oi", a video download
service. Today, approximately 100 thousand video downloads are
carried out on a monthly basis by 200 thousand users whose
mobile phones support the service.

"Oi Empresa Parceira": 50% discount for the corporate market Oi
developed "Oi Empresa Parceira", a service designed to meet the
needs of corporate clients, allowing the choice from a
combination of 5 or 10 numbers, whether fixed line or mobile, of
any telecom Company, for conversations with a 50% discount
anytime during the day.

Two service types are offered: Oi Empresa Parceira 5 (R$ 6.90
per month per line), and Oi Empresa Parceira 10 (R$ 9.90 per
line)

Oi plan combines pre and postpaid

Oi launched the "Oi Controle" plan, allowing users to control
their telephony spending by paying a monthly fee of R$ 37.90. If
the customers use up the monthly allowance, they can use credits
with no change in the tariff billed, i.e. R$0.95 per minute in
local calls, 36% below prepaid calls in Rio de Janeiro. These
credits have no expiration date, as long as the customer pays
his/her bills on a timely basis.

8. OUTLOOK 2004

We present below our current targets for operating and financial
results for full year 2004, which were revised in light of the
results of 3Q04.


                   Estimates for 2004

                          Previous           Current

Subscribers - Dec/04

Wireline - Mn LIS             15.2              15.2
Velox - '000 customers       450.0             480.0
Oi - Mn customers              6.5               6.7
Net Debt (Dec/04) - R$      bn 6.3               6.3*
CAPEX - R$                  bn 2.0               2.0
TMAR                          55%                55%
Oi                            40%                40%
Contax                         5%                 5%
Bad Debt
(Consolidated,
% of Gross Revenues)           3%                2.8%
EBITDA Margin (Consolidated) ~43%                ~43%

(* To this amount should be included the disbursement throughout
the year regarding the Buyback Program by the treasury of the
Company)

To view financial statements:
http://bankrupt.com/misc/Telemar3Q04.pdf

CONTACTS: TNL - Relacoes com Investidores (IR Team)
          e-mail:(invest@telemar.com.br)
          55(21) 3131-1314/1313/1315/1317/1316

          Mr. Kevin Kirkeby
          e-mail:(kkirkeby@hfgcg.com)
          Phone: 1(646) 284-9416
          Web Site: www.telemar.com.br/ir



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

COEUR D' ALENE: Shelf Registration Statements Declared Effective
----------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE) announced Thursday
that the registration statement on Form S-3 it filed on April
20, 2004, as amended on October 14, 2004, was declared effective
by the Securities and Exchange Commission (the "SEC"). The
Company filed the registration statement to register the offer
and sale by the Company from time to time of up to $250 million
of various securities, which may include debt securities,
preferred stock, common stock and or warrants.

The Company will determine the use of proceeds of any particular
offering only if and when the Company actually sells securities,
but the Company currently expects that it will use the proceeds
of any sale of any securities registered on the Form S-3
registration statement for general corporate purposes, which may
include expansion and development of existing operations,
possible acquisitions of mining properties or other mining
companies, for working capital to support the Company's growth
or the repayment of indebtedness.

In addition, the Company's registration statement on Form S-4
also filed on April 20, 2004, as amended on October 14, 2004,
was declared effective by the SEC. Pursuant to the Form S-4
registration statement, the Company may offer from time to time
up to 50 million shares of common stock to be used solely for
exchanges, mergers, asset acquisitions and other forms of
business combination transactions.

No securities associated with the two registration statements
have been offered or issued at this time. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy any of the securities registered under the
registration statements referred to herein. The offering of the
securities shall be made only by means of a prospectus contained
in the registration statement filed with and declared effective
by the SEC.

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

CONTACT:  Tony Ebersole
          Director of Investor Relations
          800-523-1535



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

* ECUADOR: Uncertain Political Climate Leads To Debt Downgrade
--------------------------------------------------------------
Investment house Barclays Capital slashed its recommendation on
Ecuadorian debt to negative from neutral, reports Dow Jones
Newswires.

The move reflects the increased political uncertainty that may
delay an accord with the International Monetary Fund, Barclays
indicated in a research note Thursday.

"The climate of increased political uncertainty jeopardizes
Ecuador's near-term chances of reaching even a shadow
arrangement with the IMF." With an agreement likely to be
delayed, "the risk of Ecuador running into difficulty in
financing its public sector next year has increased," the
research note said.

Opposition lawmakers are organizing to prepare impeachment
proceedings against President Lucio Gutierrez, who can count on
very few allies in Congress.



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

CORPORACION DURANGO: EBITDA Rises 32% from 3Q03
-----------------------------------------------
Corporacion Durango, S.A. de C.V., (BMV: CODUSA)("Durango" or
the "Company"), the largest integrated paper producer in Mexico,
announced Thursday its unaudited consolidated results for the
third quarter of 2004.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant
Mexican pesos as of the end of each period and converted into
U.S. dollars using the exchange rate at the end of each period.

All comparative figures for the third quarter and accumulated
2004 and 2003 were prepared on a pro-forma basis after excluding
the results of the Pronal, Ponderosa and Molded Pulp operations.

HIGHLIGHTS

- Shipment growth of 10% in 3Q04 vs. 3Q03
- Growth of average prices of 8% in 3Q04 vs. 3Q03
- Net sales growth of 19% in 3Q04 vs. 3Q03
- Unit production costs grown by 7% in 3Q04 vs. 3Q03
- EBITDA 32% greater in 3Q04 vs. 3Q03
- All factors aligned to conclude Financial Restructuring by the
end of the year

                    PERFORMANCE
                    (US$Million)

Item                   3Q04         3Q03          VAR

Total Shipments
(`000 Short Tons)     335.5        304.7          10 %

Pricing
(US$/Short Ton)       545          503             8 %

Net Sales
(US$Million)          182.9        153.2          19 %

Unit Cost
(US$/Short Ton)       463          432             7 %

EBITDA
(US$Million)           21.4         16.2          32 %

EBITDA Margin          12%          11%            1 %


         HIGHLIGHTS FOR THE THIRD QUARTER 2004

Shipments (000 Short tons)         3Q04            3Q03
Paper                             167.1           141.1
Packaging                         168.4           163.6
Total                             335.5           304.7

Net Sales (US$ Million)            3Q04            3Q03
Paper                              88.7            63.8
Packaging                          94.2            89.3
Total                             182.9           153.2

Unit Cost (US$/ Short Ton)         3Q04            3Q03
Total                               463             432

Prices (US$/Short Ton)             3Q04            3Q03
Paper                               531             452
Packaging                           559             546
Total                               545             503

EBITDA
(US$ Million)               3Q04   Margin   3Q03 Margin
Paper                       12.2       14%   3.7      6%
Packaging                    9.2       10%  12.6     14%
Total                       21.4       12%  16.2     11%

ACCUMULATED RESULTS FOR 2004

Item                        Ac04      Ac03       VAR
Total Shipments
(`000 Short Tons)          975.6      898.3      9 %
Pricing
(US$/Short Ton)              508        506       -
Net Sales
(US$Million)               495.7      454.2      9 %
Unit Cost (US$/Short Ton)    440        434      1 %
EBITDA (US$Million)         52.9       49.8      6 %
EBITDA Margin                11%         11%      -

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

CONTACTS: Corporacion Durango, S.A. de C.V.
          Ms. Mayela R. Velasco
          Phone: +52 (618) 829 1008
          e-mail: mrinconv@corpdgo.com.mx

          Mr. Miguel Antonio R.
          Phone: +52 (618) 829 1070
          e-mail: rinconma@corpdgo.com.mx

          The Global Consulting Group
          Mr. Kevin Kirkeby
          Phone: (646) 284-9416
          e-mail: kkirkeby@hfgcg.com


EMPRESAS ICA: Revenues Rise 23% in 3Q04
---------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction and procurement
Company in Mexico, announced Thursday its unaudited consolidated
results for the third quarter of 2004.

HIGHLIGHTS:

- Third quarter revenues rose 23 percent to Ps. 3,208 million,
compared to Ps. 2,599 million recorded in the third quarter of
2003.

- General and administrative expenses were 9 percent of sales.
For the third quarter of 2004 the amount was Ps. 285 million,
compared to Ps. 256 million in the same period of the prior
year, an 11 percent increase.

- Operating income for the third quarter of 2004 was Ps. 151
million, an improvement of Ps. 270 million compared to the
operating loss of Ps. 119 million in the same period of 2003.

- During the quarter, ICA was awarded new contracts and net
contract additions of Ps. 2,613 million. ICA's construction
consolidated backlog as of September 30, 2004 was Ps. 15,311
million, equivalent to 16 months of work based on the volume of
work executed in the third quarter of 2004.

- The Company obtained four working capital loans in a combined
amount of US$ 70 million, equivalent to Ps. 795 million, for
construction of four marine drilling platforms for the Ku-
Maloob-Zaap fields. Each loan has a dollar denominated portion
and a peso denominated portion. At September 30, 2004, Ps. 250
million of the credit facilities had been disbursed.

- Standard & Poor's raised ICA's foreign currency corporate
credit rating to BB- from CCC, and it's domestic currency rating
to MxBB+ from MxB. Standard & Poors' noted that it would
reconsider the credit rating once the liquidity of the Company
improved and debt refinancings had been concluded.

- Total debt at the end of the third quarter was Ps. 7,420
million, an increase of Ps. 2,028 million compared to the Ps.
5,392 million recorded 12 months earlier. Excluding the debt of
the El Cajon project, the Company's debt fell by Ps. 1,945
million during this period.

- ICA recorded net income of majority interest, for the first
time since the second quarter of 1998, of Ps. 38 million in the
third quarter of 2004, compared to a loss of Ps. 592 million in
the third quarter of 2003.

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

CONTACTS: Ing. Alonso Quintana
          Phone: (5255) 5272-9991 x3468
          e-mail: alonso.quintana@ica.com.mx

          Lic. Paloma Grediaga
          Phone: (5255) 5272-9991 x3664
          e-mail: paloma.grediaga @ica.com.mx

          In the United States:
          Zemi Communications
          Mr. Daniel Wilson
          Phone: (212) 689-9560
      E-mail: d.b.m.wilson@zemi.com


GALEY & LORD: Court Approves Sale to Patriarch Partners
-------------------------------------------------------
Patriarch Reiterates Commitment to Working With Management to
Achieve Long-Term Success; Operations to Emerge From Bankruptcy
Following Close of Transaction

Galey & Lord, Inc., a leading global supplier of denim, khaki
and corduroy fabrics for the fashion apparel and uniform
markets, announced that the U.S. Bankruptcy Court for the
Northern District of Georgia approved its sale to Patriarch
Partners, LLC pursuant to Section 363 of the U.S. Bankruptcy
Code. The Company's operations will emerge from bankruptcy
following the close of the transaction, which is expected to
occur by November 8, 2004.

"We are pleased that the Court has approved the sale of Galey &
Lord to Patriarch Partners. This transaction is in the best
interests of our customers, employees, suppliers and
stakeholders," said John J. Heldrich, Jr., president and CEO of
Galey & Lord. "Patriarch is committed to helping the Company
achieve its strategic and financial objectives. We will have a
simplified capital structure and a supportive partner that
recognizes our strengths, our position in the marketplace and
what we need to be successful. We will accelerate our efforts to
improve profitability and we will continue to provide our
customers with innovative products, flexibility and speed to
market."

"Galey & Lord has an exceptional management team, an outstanding
customer base, and a long track record of delivering quality and
innovative products," said Lynn Tilton, principal of Patriarch
Partners. "The Company is an important part of an industry that
is undergoing significant change and we are excited for the
opportunity to invest in its future."

Under the terms of the agreement, New York-based Patriarch,
whose funds have $4 billion under management, will acquire
substantially all of Galey & Lord's assets in exchange for $40
million in cash and the assumption or refinancing of certain
secured obligations, contracts, employee obligations and
administrative liabilities. Galey & Lord entered voluntary
bankruptcy protection in August of 2004 to expedite a
transaction through a formal bankruptcy sale process.

Galey & Lord also announced several organizational changes
designed to position the Company for future success. In order to
better optimize and build the Company's brands, which are
recognized for quality and innovation, Galey & Lord has created
four strategic business units. Each business unit is headed by a
managing director who is responsible for profitability and
delivering the full range of products to customers. The managing
directors and their respective divisions include: Bob McCormack,
Sportswear; Jake Fraser, Jeans; Rick Waide, Specialty Markets
and Paul Tantillo, Uniform.

In addition, Galey & Lord has named Al Blalock senior vice
president of operations and Tim Driver senior vice president of
international business relations. Mr. Blalock is responsible for
all aspects of the Company's domestic manufacturing operations.
Mr. Driver is responsible for optimizing international
operations including the Swift Denim Hidalgo facility in Mexico,
and will work to finalize and implement ventures in other parts
of the world. The senior management team will be based in
Atlanta.

Galey & Lord, Inc. operates domestically and internationally
through joint ventures in Europe, North Africa, Asia and Mexico.
Its customers include: VF, Gap, Old Navy, Banana Republic, Polo
Ralph Lauren, Abercrombie & Fitch, Levi's, Tommy Hilfiger, L.L.
Bean, Nautica, Eddie Bauer, Liz Claiborne, Haggar, Land's End,
and Tropical Sportswear / Savane, among others.


GRUPO MEXICO: To Pay $55M to Mine Workers
-----------------------------------------
Grupo Mexico, the world's third-largest copper producer, will
pay US$55 million to Cananea and La Caridad mine workers to
settle an equity claim related to the privatization of the mines
15 years ago, reports Dow Jones Newswires.

Grupo Mexico said the money will be paid into a trust for the
Cananea and La Caridad workers.

The Company had agreed to the payment on October 23 to put an
end to the strikes at the mines. The settlement came after
management at Southern Peru Copper Corp. (PCU) approved a
planned merger with Grupo Mexico unit Minera Mexico, which
includes the Cananea and La Caridad mines, to create a Company
with the world's second largest copper reserves.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


GRUPO MEXICO: EBITDA Jumps Doubles Year-on-Year
--------------------------------------------
Grupo Mexico, S.A. de C.V. (BMV: GMEXICO) reported its results
Thursday corresponding to the third quarter and the nine months
ended September 30, 2004.

HIGHLIGHTS:

- Southern Peru (SPCC) will acquire Minera Mexico (MM) in a
stock-for-stock transaction, SPCC will transform in world class
mining Company, the second largest in terms of market
capitalization among the copper mining companies in the NYSE,
the second largest mining Company in the world insofar as copper
reserves are concerned. When the stock deal is complete, Gmexico
will own roughly 75.1% of SPCC.

- Greater consolidated sales in 3Q04 that reached $1,022.3
million1, 62% higher than total sales in 3Q03, and rose 3% from
995 million than that of the 2Q04, bolstered by the increase in
prices and greater volumes sold, despite a 13-day strike at SPCC
and 17 days at MM, which reduced production in the third quarter
slightly. Sales of products for the first nine months of 2004
totaled $2,891 million compared with $1,761 million for the same
period 2003, representing 65% increase.

- Greater consolidated operating profit in 3Q04, which totaled
$375.2 million, 237% more than that recorded in the same period
of 2003. Accumulated for the first nine months of 2004 totaled
$1,085 million compared with $239 million for the same period
2003, representing 355% increase.

- EBITDA increased 154% year over year to $444.7 million with an
EBITDA margin of 43.5% over sales. Accumulated for the first
nine months of 2004 totaled $1,294 million compared with $446
million for the same period 2003, representing 190% increase.

- Considerable increment in consolidated net profit in 3Q04 that
was $136.6 million, compared with a ($20.8) million loss
obtained in the same quarter of 2003.

- Increase in the price of metals that we produce: 61% in
copper, 198% in molybdenum, 30% in silver and 19% in zinc,
compared with 3Q03.

- Prepayment of MM debt, which subscribed a new syndicated loan
of $600 million led by Banamex/Citigroup that will be funded on
October 29. The proceeds are to be used to fully prepay the
balance of the debt that MM restructured with Secured Export
Notes (SENs) and 14 banks on April 29, 2003. The terms of the
new loan reflect the significant improvement in MM's performance
Results of the Third Quarter of 2004 and allow the Company to
decrease its financial cost by approximately $25 million per
annum, extend its maturities to 2009, increase its financial and
operational flexibility for future growth and development as
well as release security in the form of export collections and
certain other assets.

- Prepayment of $60 million of AMC's $310 million debt, reducing
it to $250 million at the holding Company level of the mining
division.

Relevant Events

On October 21 SPCC announced that it reached an agreement to
merge with Americas Mining Corporation ("AMC"). According to
that set forth in the merger agreement, AMC will exchange its
stock participation equal to approximately 99.15% of its
subsidiary Minera Mexico for approximately 67.2 million shares
of SPCC, equivalent to 75.1% of the same. SPCC's Board of
Directors has unanimously approved the merger agreement, after
receiving the favorable recommendation of a special committee of
independent board members of SPCC. Grupo Mexico is the majority
shareholder, 54.2% of SPCC prior to the transaction. As part of
this agreement, SPCC will decree and pay an extraordinary US$100
million dividend to SPCC stockholders before the deal is closed.

The transaction will be subject to a favorable vote from at
least two thirds of SPCC' shareholders even though legally a
simple majority is enough.

Likewise, there is a maximum indebtedness level of US$1 billion
for MM As a result of this operation, SPCC will become a world-
class mining Company, the second largest in terms of market
capitalization among the copper miners on the NYSE, additionally
enjoying the second largest copper mineral reserves in the
world.

After the merger, SPCC will continue to have a very solid
capital structure, that will allow its investment and growth
plans to increase its diversification in terms of minerals,
markets, consumers and assets. It is expected it can obtain
synergies given the nature of the requirements for investment in
the operations of SPCC and MM. It is expected that the
transaction results, as has been proposed, in a single series of
common shares for SPCC listed both on the New York Stock
Exchange as well as the Lima exchange. The possibility of
listing on the Bolsa Mexicana de Valores will also be studied.

On October 25, 2004 Fitch Ratings placed the Minera Mexico "B"
rating on a global scale with a Positive Watch Observation. Also
on a global scale Fitch placed the GMexico "B-" and Americas
Mining Corporation ("AMC") "B" in Positive Watch Observation.
Moreover, Fitch ratified the Southern Peru Copper Corporation
("SPCC") rating on a global scale in foreign currency of "BB-"
and changed its outlook to Positive from Stable.

On August 17, 2004, Standard & Poor's Ratings increased Grupo
Mexico's corporate credit rating from B- to B+, with a stable
outlook. S&P also increased the credit rating of the mining
holding Company Americas Mining Corporation and that of its
operating subsidiaries, Minera Mexico, Southern Peru Copper
Corporation and Asarco, raising them from CCC+ to B- with a
positive outlook. It is expected that in the future these
ratings will improve considerably, given the good performance of
the mining division, the improved profile and the size of its
debt.

On October 23, 2004, Minera Mexico reached a satisfactory
agreement with the National Union of Mine, Metallurgical and
Similar Workers of the Mexican Republic for the purchase of a 5%
stock stake of the Union in Mexicana de Cobre and Mexicana de
Cananea for a cash value of $55 million payable in the month of
January to the trust set up in favor of the mine workers of
Minera Mexico's companies. With the solution of this essential
subject, which caused a number of labor conflicts, productive
and cordial relations between the union and the Company were
renewed.

Financing

Gmexico's total debt as of September 30,2004 is $2,477.0 million
with a balance in cash and banks of $624.7 million, which equals
a net debt of $1.85 billion. Cash at the close of December 2003
was $560.6 million, which led to a net debt of $2.43 billion vs.
$1.85 billion through September of 2004. This relation generates
a debt reduction of $577.6 million, representing a net debt
reduction of 24% during the first nine months of this year.

Grupo Mexico reduced its own debt level from $80 million to $15
million, which it will pay in the coming months to place its
holding with "zero" debt.

During 3Q04, Americas Mining Corporation made a prepayment of
$60 million on a $310 million loan granted by Banco Inbursa that
comes due in 2008, which equals a 16.1% reduction in this
Company's debt.

Consequent to its good performance in 3Q04, Minera Mexico
contracted a syndicated bank loan led by Banamex/Citigroup for
$600 million for a five-year term, which becomes available on
October 29, 2004. These resources will be destined to prepay in
full the remainder of the debt that this subsidiary restructured
with SENs and 14 banks on April 29, 2003, which at that time
reached $881 million, as mentioned in greater detail above.

Minera Mexico's total debt is slightly above $1 billion and
there are plans to reduce it in the near future to the $800
million level to be in highly conservative conditions at
international level and, therefore, continue with its operation,
development and investment programs.

With this, the Group fulfills the goal it had announced to
improve the financial conditions of its subsidiaries. Last year
it reduced the debt of its subsidiary Asarco by $650 million to
$443 million with its next maturities in 2013 and 2025; and now
it reduces and refinances Minera Mexico's debt in the best terms
and maturities. In addition it prepay debt at the level of AMC
and at the parent Company. Likewise, it prepays debt at the AMC
level and at the Grupo Mexico level.

AMERICAS MINING CORPORATION

Metal prices maintained their marked upward trend during the
third quarter of 2004, primarily with important increments in
the case of copper 60.9% and molybdenum 197.7% while silver
advanced 29.5% in comparison with 3Q03.

The growth in demand for copper continued strong in 3Q04 in all
consumer economies, especially such as that witnessed by the
pronounced demand in China and a 14.2% greater demand recorded
in the United States this year, contributing to a deficit on the
market, reducing international metal inventories by 400% in the
first nine months of the year from 700,000 to 140,000 tons of
inventories worldwide. Analysts' expectations suggest an ongoing
deficit in the supply of copper in 2005.

Sales of the mining sector ("AMC") in 3Q04 were increased by 80%
to $868.9 million, while the cost of sales rose 35.7%, leading
as a result to a net profit of 531.9% higher than that of the
same period of the year before, which was equivalent to a loss
of 28.7 million.

Sales of the 3Q04 for $868.9 million rose 4.1% with respect to
2Q04 despite a 13-day strike at SPCC and a 17-day strike in the
metallurgical plant at La Caridad, Mexico, during the quarter.

The EBITDA increased 222% year over year and 1.3% to that
recorded in 2Q04, reaching $390.6 million. The EBITDA margin as
a percentage of sales was increased from 21.6% to 45.0%.

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

METAL PRODUCTION

MINERA MEXICO (MM):

Copper mining production reached 74,899 MT in 3Q04, 1.6% below
the production of the same period of 2003. Although at Mexicana
de Cananea production increased on better availability and
utilization of the mining equipment, as well as 14% greater
milling and a grade of the ore in the milled mineral that has
been 13% superior, this decrease of 1,126 MT of copper is due to
the 17-day strike that the La Caridad mine and metallurgical
plant suffered in the month of July and a decrease in the
mineral quality from IMMSA.

The drop in production was mitigated by an increment in the
price of metals, causing sales to increase to $311.4 million in
the third quarter of 2004, 58.7% higher compared with the same
period of 2003.

On the other hand, the cost of sales in 3Q04 of $158.1 million,
which is 13.6% higher than that of the same period of last year,
was due primarily to lower volumes produced due to the strike at
La Caridad, as well as important increments in 3Q04 in energy
and, in particular, that of electric energy and diesel. This
caused the cash operating breakeven point for MM's copper
production to reach 39.3 cents per pound of copper through
September 30, 2004 versus 51.0 cents during the same period of
the previous year.

Minera Mexico's EBITDA rose to $142.7 million in 3Q04, reaching
$481.1 million for nine months, which represents 49.9% over
sales. Minera Mexico reported an increment of 325.8% in net
earnings, going from a loss of $26.9 in 3Q03 to a $60.7 million
gain in 3Q04 and to reach an accumulated $275.6 million in 3Q04
versus a $91 million through 3Q03.

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

SOUTHERN PERU COPPER CORPORATION (SPCC):

SPCC will acquire MM through a new stock emission, creating the
second most important mining Company worldwide at copper reserve
level, listed on the markets in Lima, Peru, the New York Stock
Exchange, US, and possibly in the future on the Bolsa Mexicana
de Valores, creating thus a world-class Company that will allow
it to compete better in this globalized market.

Copper mining production during 3Q04 was increased by 4.1% to
102,528 MT. This 4,016 MT increment includes 3,258 MT from the
Toquepala mine, despite the illegal 13- day strike given the
major participation by workers who decided to continue working
during this period; 2,069 MT from the Cuajone mine and a
decrease of 1,311 MR of SX/EW production.

Product sales totaled $428.0 million in the third quarter of
2004, compared with $209.4 million in the third quarter of 2003,
an increment of 104% that can be attributed to the increment in
the price of metals and higher volumes sold.

EBITDA for 3Q04 was increased by 199%, from $77.4 to $231.5
million. At the same time, SPCC's cash increased 64.2% to $418.6
million through September 30, 2004.

The Company's net profit was 265% higher than that of the past
year and totaled $131.9 million compared with $36.0 million
during the same period of the year before to an accumulated $340
million compared with $76 million the year before, resulting in
a 347% increment in the first nine months.

Production increments and the efficiencies reached represent a
significant step toward the goal of reducing unit costs and
optimizing the cash breakeven operating cost for SPCC' copper
production, which was 24.9 cents and 41.1 cents in 2004 and
2003, respectively. This represents a reduction of 39.4%. Also
due to improved prices in byproducts particularly molybdenum.

As for the expansion and modernization program at SPCC, the Ilo
foundry project continues ahead on schedule with the advance of
the detailed engineering studies in order to finish at the end
of the year 2006.

Moreover, the Company's leaching project at the Toquepala mine
is also on schedule. In March of 2004, an $8 million contract
was granted to Cosapi, a Peruvian construction company. The
contract is part of the $70 million project, which is expected
to conclude in mid 2005 and would allow annual savings of $25
million in operating costs for the Company. As of September 30,
2004, $25.8 million have been invested.

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

ASARCO, INC.:

Asarco's total sales rose 61.6%, reaching $131.8 million in
3Q04, compared to $81.6 million in the same period of 2003.
Asarco hedged the prices of copper at around $1.40 dollars per
pound for 100% of its production for the last quarter of the
year.

In order to expose areas of copper ore in the near future and
ensure the supply of copper in the long term, the accelerated
waste removal and allocation of resources that in April were
first assigned to mines to improve the availability of equipment
have begun to bear fruit, noting already an appreciable
improvement in production in 3Q04 with respect to 2Q04 and this
trend is expected to continue.

During 3Q04, copper production was 39,885 MT, 1.6% below that of
the same period of 2003 and an increase of 30.2% with respect to
2Q04. At Mission production was increased by 42% to 7,570 MT,
basically because of the increment in mined mineral; at the Ray
mine, production increased 61% to 17,392 MT, due to less volume
moved and lower mineral ore grade. In the ESDE plant at Ray, the
pounds produced rose 3.8% due to the higher copper grade of the
solution. The ESDE plant at Silver Bell had a 1.1% increase in
production to 5,503 MT due also to a greater ore grade.

The high responsibility and maturity of the Steel Workers Union,
which represents workers at the mining units of Misin,
Amarillo, Hayden and Silver Bell, as well as the management of
the Company, has allowed ongoing talks and conciliatory
negotiations, even though the dates set for the strike have
expired, without workers walking off the job at any of the
units, thus aiding in the recovery of Asarco and the
conservation of the source of employment, preventing the loss of
jobs.

The increase in costs was originated by the 55% increment in the
tonnage moved in the mines and to maintenance of equipment to
raise the availability levels to industry standards, a situation
that had been affected during the period of low liquidity. The
cash breakeven operating cost for Asarco's copper production was
98.2 cents per pound of copper through 3Q04 versus 80.4 cents
the year before and that is expected to be reduced in the next
year as the waste program at its mining units concludes.

Asarco's EBITDA was $12.0 million in 3Q04 compared with $ (0.3)
million in the same period of 2003. EBITDA accumulated through
the third quarter of the year 2004 was $45.2 million versus $
(3.8) million accumulated in the same period of 2003.

Asarco reported a net loss in 3Q04 of $2.1 million compared with
$13.7 million in the same period of 2003. The net profit
accumulated through September 30, 2004 reached $5 million.

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

There is a very long-term amortization profile, whose next
significant amortization is not due until the year 2013. The
Company already has favorable conditions to improve the
development of its operations and results in the coming fiscal
years.

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

RAILROAD DIVISION

GRUPO FERROVIARIO MEXICANO (GFM):

The volume of tons per kilometer (tons/km) transported by
Ferromex during 3Q04 was up 16% compared with the same period of
2003, primarily due to an increment in the trade flow between
Mexico and the United States caused by the economic growth of
the market.

Sales for $157.1 million showed an increase of 3.1% in 3Q04
compared with the previous year.

The cost of sales in 3Q04 of $98.7 million showed a 5.7%
increase year over year. This effect was somewhat offset when
greater volumes were transported, which allowed for earnings
from higher services in this quarter. However, it was affected
by the effects of an important increase in the cost of diesel.
The price of diesel increased 31.6%, rising from $.2349 cents to
$.3092 cents.

Ferromex' EBITDA was $51.9 million in 3Q04 compared with $53.0
million for the same period of 2003. Operating profit was 7.6%
higher than that of 3Q03 in spite of the important growth in the
cost of diesel, which is the main input of rail operations.

Net profit increased 83.0%, going from $11.6 million to $21.3
million in 3Q04.

As for investment projects and the acquisition of other assets,
in the third quarter of 2004 $24.4 million was invested, 68.3%
more than the year before.

On September 30, 2004 the total debt of $441.5 million shows a
decrease of 9.25% compared with the $486.5 million in the same
period of the year before. Its net cash debt is $339.7 million;
its adequate and conservative financial structure allows the
Company great operating and financial flexibility for the
development of its activities to continue with impressive growth
in volumes transported. Starting in 4Q04 a formula that allows
for the recovery of increments in diesel as US railroads do is
being considered and with it there would be a better correlation
between volumes moved and sales.

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

To view financial statements:
http://bankrupt.com/misc/GrupoMEx3Q04.pdf

CONTACT: Grupo Mexico, S.A. de C.V.
         Av. Baja California No. 200
         Col. Roma Sur, C.P. 06760
         Mexico


GRUPO TMM: Posts $13.5M Net Profit in 3Q04
------------------------------------------
Grupo TMM, S.A. (NYSE: TMM; BMV: TMM A; "TMM"), a Mexican multi-
modal transportation and logistics Company and owner of the
controlling interest in Mexico's busiest railway, TFM, reported
revenues from consolidated operations of $236.8 million for the
third quarter of 2004, compared to $230.1 million for the same
period of 2003.

Improved revenues were reported at TFM (without Tex Mex),
Specialized Maritime, Ports and Logistics operations. Affected
primarily by a 39 percent increase in fuel costs during the
third quarter, consolidated operating income decreased $1.8
million, from $35.7 million in 2003 to $33.9 million in 2004.
Net profit for the quarter was $13.5 million, or $0.24 per
share, compared to a loss of $29.9 million, or $0.53 per share,
for the prior-year period.

Net results for the 2004 third quarter included a $17.0 million
gain from the recognition of a recent tax ruling in favor of the
Company. Net results in the 2003 third quarter included one-time
charges totaling $10.9 million and included employee severance
costs, amortization of warrants and a net book loss from the
sale of a vessel.

Third-quarter 2004 selling, general and administrative (SG&A)
costs, including restructuring charges, decreased $1.2 million,
or 13.8 percent, compared to the same period of last year and
reflected employee overhead reductions and cost savings
associated with the completion of the Company's debt
restructuring.

For the first nine months of 2004, revenues from consolidated
operations were $696.9 million, compared to $678.0 million for
the same period of 2003. Improved revenues were reported at all
divisions. Consolidated operating income in the period improved
$2.1 million, from $97.3 million in 2003 to $99.4 million in
2004, in spite of 25 percent higher fuel costs in the 2004
period. Net results for the 2004 first nine months improved
$10.1 million from the year-earlier period. As noted above
however, results for the first nine months of 2004 included a
favorable tax ruling and for the 2003 period included one-time
charges totaling $10.9 million. SG&A costs, including
restructuring charges, in the first nine months of 2004
decreased $4.2 million, or 14.8 percent, over the prior-year
period.

As anticipated, the Company continued to benefit from improving
trade growth on the NAFTA corridor. During 2004, Mexican trade
in the manufacturing sector grew 15.7 percent in the third
quarter and 13.5 percent during the first nine months compared
to the prior year. This growth was reflected in an increase in
the Company's volume and revenues, beginning in March, compared
to last year. The Company believes that trade growth should
continue to improve in the remainder of 2004.

At TFM (without Tex Mex), 2004 third-quarter results reflected
continued growth and improvement in NAFTA. Overall revenues and
volume grew 5.1 percent and 12.0 percent in the third quarter,
and 3.0 percent and 5.3 percent in the first nine months,
respectively, over the prior-year periods. Third quarter 2003
revenues included a one-time cancellation of an incentive that
did not require payment. Third-quarter and year-to-date revenues
were negatively impacted approximately $10.5 million as a result
of a decline in automobile segment revenues and by year-to-date
peso devaluations totaling 4.5 percent.

The following chart reflects the rail division's segment
results, comparing the third quarter and first nine months of
2004 with the same periods of 2003:

                   Third-Quarter Percent  Year-To-Date Percent
                      Revenues Change      Revenues Change
  ----------------------------------------------------------
  Chemical                   1.5%                 13.1%
  ----------------------------------------------------------
  Industrial                13.7%                  4.6%
  ----------------------------------------------------------
  Cement, Metals
  and Minerals              13.9%                  9.7%
  ----------------------------------------------------------
  Agroindustrial             8.9%                  2.2%
  ----------------------------------------------------------
  Intermodal                 5.6%                 -5.8%
  ----------------------------------------------------------
  Automobile               -10.6%                 -8.5%
  ----------------------------------------------------------

Operating profit at TFM decreased $2.1 million in the quarter,
impacted by a $5.6 million increase in fuel costs. Fuel costs
increased approximately 39 percent in the third quarter and 25
percent year-to-date over the prior-year periods. TFM's
operating ratio (without Tex Mex) was 80.4 percent for the
quarter. As of September 30, TFM's outstanding debt balance
declined $58.7 million compared to December 31, 2003. On October
22, Standard & Poor's removed TFM from creditwatch and
maintained its long-term credit rating at B.

At Specialized Maritime, which provides international and
coastal maritime transportation services for liquid cargoes,
harbor towing, and logistical support to the oil production and
exploration sectors, revenues improved 15.4 percent in the third
quarter and 13.3 percent in the first nine months of 2004, as
compared to both periods in 2003. As a consequence, operating
results increased $0.8 million in the third quarter and $6.1
million in the first nine months of 2004 as compared to the
prior year. Results were positively impacted by increased supply
ship and product tanker rates and by significant declines in
SG&A costs throughout the year. Increased costs, primarily in
parcel tankers related to recent hurricane activity in the Gulf
of Mexico, negatively impacted quarterly results.

In the Ports and Terminals division, revenues and operating
profit were affected by normal seasonal trends. Fourth-quarter
2004 results are expected to incorporate improved cruise ship
activity consistent with the first and second quarters of this
year. This division represents approximately three percent of
the Company's total revenues.

In the Logistics division, all key factors for performance
improved in spite of the continued effects of the struggling
automobile sector, which impacted terminals, auto services
yards, trucking and intermodal services throughout the country.
The Logistics division has entered into an important
comprehensive supply chain management agreement with Ford Motor
Company, excluding Land Rover and Jaguar. The contract allows
TFM and TMM Logistics to manage integrated domestic distribution
of all finished vehicles, including imports to dealers, mixing
centers, exports and local Mexican moves. This agreement is
anticipated to produce Company revenues of $25 to $27 million
per year. In the trucking division, operating cost reductions
should be achieved in future periods from the truck fleet
renewal program currently underway.

Javier Segovia, president of Grupo TMM, said, "We accomplished
several important steps in the third quarter. I believe we have
much to be proud of. While the restructuring of TMM's debt was
challenging, the successful completion of the bond exchange at
the levels we achieved allowed us to conclude our restructuring
outside of a Court proceeding and to give TMM the financial
flexibility needed to move forward with a new strategy for
increasing value and providing healthy returns to our investors.

"Additionally during the quarter, TMM and Kansas City Southern
completed important strides in our efforts to complete a
transaction concerning TFM. The sale of 51 percent of TFM's
interest in Mexrail to Kansas City Southern will make our TFM
partner a stronger U.S. rail carrier to the border once the
transaction is approved. The sale allows three north-of-the-
border carriers to be more competitive to and from the Laredo
Bridge.

"Furthermore," Segovia continued, "the Mexican Foreign
Investment Commission authorized Kansas City Southern's proposed
acquisition of TMM's interest in TFM. Combined with the Mexican
Federal Competition Commission's extension of Kansas City
Southern's approval to purchase TMM's interest in TFM for an
additional 180 days, all Mexican regulatory barriers have been
removed. The partners have also agreed to extend the current
deadline under the April 20, 2003, Acquisition Agreement until
June 15, 2005, to provide additional time to complete a
transaction. The Company continues to seek an equitable
transaction process as expeditiously as possible.

"Finally, results across all divisions improved in the quarter
and nine-month periods despite the continued sluggishness of the
automobile sector and the unprecedented rise in fuel costs.
Improving trade growth along the NAFTA corridor and new
contracts at Logistics, Ports and Specialized Maritime
translated into strong revenues and volume growth at TMM.
Stronger operations and reduced expenses are expected to
continue across all business units for the remainder of 2004 and
into 2005, providing enhanced value for our shareholders."

                  DIVISIONAL RESULTS
            (Under Continuing Operations)
              (All numbers in thousands)

3Q 2004

         Railroad Ports Specialized Logistics Others   Total
                          Maritime
  -------------------------------------------------------------
  Revenues 174,492  7,606      33,130   25,014  (3,401) 236,841
  -------------------------------------------------------------
  Costs    141,192  7,231      28,488   21,769  (3,409) 195,271
  -------------------------------------------------------------
  Gross
  Result   33,300    375        4,642    3,245       8   41,570
  -------------------------------------------------------------
  Gross
  Margin     19.1%   4.9%       14.0%    13.0%    0.2%    17.6%
  -------------------------------------------------------------
  SG & A
  (Estimate)   430    866       1,201    1,386   3,798    7,681
  -------------------------------------------------------------
  Operating
  Results   32,870   (491)      3,441    1,859  (3,790)  33,889
  -------------------------------------------------------------
  Operating
  Margin     18.8%  (6.5%)       10.4%    7.4% (111.4%)    14.3%
  -------------------------------------------------------------

(a)Third Quarter 2003

       Railroad   Ports  Specialized Logistics  Others   Total
                           Maritime
  --------------------------------------------------------------
  Revenues 178,246  4,934      28,718    23,070  (4,895) 230,073
  --------------------------------------------------------------
  Costs    141,147  4,150      23,940    21,216  (5,030) 185,423
  --------------------------------------------------------------
  Gross
  Result    37,099    784       4,778     1,854     135   44,650
  --------------------------------------------------------------
  Gross
  Margin     20.8%   15.9%      16.6%      8.0%    2.8%    19.4%
  --------------------------------------------------------------
  SG & A
  (Estimate)1,119     664       2,100     1,480   3,552    8,915
  --------------------------------------------------------------
  Operating
  Results  35,980     120       2,678       374  (3,417)  35,735
  --------------------------------------------------------------
  Operating
  Margin    20.2%     2.4%       9.3%      1.6%  (69.8%)   15.5%
  --------------------------------------------------------------

First Nine Months 2004

         Railroad Ports Specialized Logistics Others Total
                          Maritime
  --------------------------------------------------------------
Revenues  526,915 18,998      95,949   69,121  (14,038) 696,945
  --------------------------------------------------------------
Costs     428,618 16,902      81,836   60,156  (13,999) 573,513
  --------------------------------------------------------------
Gross
Result     98,297  2,096      14,113    8,965      (39) 123,432
  --------------------------------------------------------------
Gross
Margin      18.7%  11.0%       14.7%    13.0%   (0.3%)    17.7%
  --------------------------------------------------------------
SG & A
(Estimate) 2,348  2,559        3,271    3,977   11,855   24,010
  --------------------------------------------------------------
Operating
Results   95,949  (463)       10,842    4,988  (11,894)  99,422
  --------------------------------------------------------------
Operating
Margin     18.2% (2.4%)       11.3%     7.2%  (84.7%)    14.3%
  --------------------------------------------------------------

(a)First Nine Months 2003

         Railroad  Ports  Specialized Logistics  Others   Total
                           Maritime
   -------------------------------------------------------------
Revenues  523,365  15,990     84,661    67,245 (13,236) 678,025
   -------------------------------------------------------------
Costs     420,263  12,887     72,547    60,204 (13,390) 552,511
   -------------------------------------------------------------
Gross
Result    103,102   3,103     12,114     7,041     154  125,514
   -------------------------------------------------------------
Gross
Margin      19.7%   19.4%      14.3%     10.5%    1.2%    18.5%
   -------------------------------------------------------------
SG & A
(Estimate) 3,200   2,162       7,346     3,249  12,231   28,189
   -------------------------------------------------------------
Operating
Results   99,902     941       4,768     3,792 (12,077)  97,325
   -------------------------------------------------------------
Operating
Margin     19.1%    5.9%        5.6%      5.6% (91.2%)    14.4%
   -------------------------------------------------------------

(a)Discontinued and restated operations

DEBT RESTRUCTURING

In August, the Company announced that all of the conditions of
its debt exchange offer and consent solicitation for its 9 1/2
percent Senior Notes due 2003 and its 10 1/4 percent Senior
Notes due 2006 were satisfied, supported by 96.5 percent of the
2003 notes and by 98.6 percent of the 2006 notes. The Company
accepted all of the tendered 2003 notes and 2006 notes for
exchange and has issued its new Senior Notes due 2007 in
exchange for the tendered notes. The Company additionally
received sufficient consents from holders of the 2006 notes to
effect the proposed amendment to the indenture governing the
2006 notes, which removed substantially all of the restrictive
covenants of that indenture. Untendered 2003 notes were redeemed
for cash on the closing date of the restructuring.

STATUS OF VALUE ADDED TAX (VAT) LAWSUIT AND
MEXICAN GOVERNMENT PUT

VAT LAWSUIT:

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

The Fiscal Court voted against TFM's claim. The Company then
filed in the Fourth Circuit Court an appeal to overrule the
Fiscal Court decision consistent with previous high Court
rulings and is awaiting the high Court's ruling in this matter.
Additionally, the Company has requested a total review of the
action taken by the Fiscal Court by a federal judge of the
Seventh District Court. The Company believes that TFM's claim to
have the VAT certificate updated for interest and inflation
accruals will be upheld by Mexico's legal system. Details on the
VAT litigation can be found in previous Company filings and
quarterly reports.

GRUPO TFM PUT:

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

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

SALE OF MEXRAIL:

The Company announced in August the sale of TFM's shares
representing a 51 percent ownership of Mexrail for approximately
$32.7 million (before taxes) to Kansas City Southern (KCS). The
sale was made on terms substantially similar to those previously
agreed to by the parties in April 2003. The Mexrail shares were
placed in a voting trust pending regulatory approval by the
Surface Transportation Board (STB) of KCS's common control of
Tex-Mex, KCSR, and the Gateway Eastern Railway Company.

Under the terms of the sale, KCS has an exclusive option to
purchase the remaining 49 percent of Mexrail between now and no
later than October 31, 2005. KCS has agreed to comply with all
prior STB rulings concerning the operation of the international
rail bridge under the terms of applicable bridge agreements and
protocols.

MEXICAN FOREIGN INVESTMENT COMMISSION:

On September 15 the Mexican Foreign Investment Commission (FIC)
delivered a notice to deny Kansas City Southern's (KCS)
application for authorization of KCS' proposed acquisition of
TMM's interest in TFM, S.A. de C.V. The approval of the FIC is
necessary for a foreign Company to become a majority owner of a
Mexican-based railway Company. KCS and TMM immediately sought
reconsideration of the decision, and as a result on October 6,
the FIC authorized KCS' acquisition of the controlling interest
in TFM.

MEXICAN FEDERAL COMPETITION COMMISSION:

On October 7, the Mexican Federal Competition Commission ("FCC")
extended its approval for Kansas City Southern to purchase TMM's
interest in TFM for an additional 180 days. The FCC originally
authorized the purchase in a ruling dated May 19, 2003, and the
new ruling extends that authorization to April 5, 2005.

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

To view financial statements:
http://bankrupt.com/misc/TMM.htm

CONTACTS: Grupo TMM
          Mr. Juan Fernandez
          Phone: 011-525-55-629-8778
          e-mail: juan.fernandez@tmm.com.mx
                      or
          Mr. Brad Skinner
          Investor Relations
          Phone: 011-525-55-629-8725
                 203-247-2420
          e-mail: brad.skinner@tmm.com.mx
                      or
          Dresner Corporate Services
          Ms. Kristine Walczak
          Investors, analysts, media
          Phone: 312-726-3600
          e-mail: kwalczak@dresnerco.com
                      or
          Proa Structura
          Mr. Marco Provencio
          Phone: 011-525-55-629-8708
                 011-525-55-442-4948
          e-mail: mp@proa.structura.com.mx

          Web Site: http://www.tfm.com.mx/


TFM: Reports $175M Net Revenue for 3 Mos. Ending Sep. 30
--------------------------------------------------------
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and its
subsidiaries ("TFM") report financial results for the third-
quarter and nine-month periods of 2004.

THIRD-QUARTER 2004 OPERATIONAL RESULTS

Consolidated net revenues for the three months ended September
30, 2004, were $174.5 million, which represents a decrease of
$3.7 million or 2.1 percent from revenues of $178.2 million for
the same period in 2003. The decrease is mainly attributable to
the sale of 51 percent of the previous wholly owned shares in
Mexrail Inc. (Mexrail) to Kansas City Southern (KCS) during the
month of August. Consequently one month of the quarter is
consolidated, while the other two are reported under the equity
method. The comparison of the quarter ended September 30, 2004,
of TFM without Mexrail shows an increase in consolidated
revenues of $4.3 million or 2.6 percent over the same period of
2003, from $ 164.6 million to $168.9 million. This improvement
in revenues is due to increased volume of 15 percent in general
cargo, driven by truck-to-rail conversion and recovery in the
Agroindustrial and Metals and Minerals segments; partially
offset by a decrease in volume in Automotive traffic; a 6.8
percent devaluation of the peso which translated into a $6.0
million deterioration of revenues; and by the cancellation
during the 2003 third quarter of certain estimated rebates.

Consolidated operating profit for the third quarter of 2004 was
$32.9 million, representing a decrease of $3.1 million from the
third quarter of 2003. However, operating profit for the three
months ended September 30, 2004, compared with the same period
of 2003 without Mexrail consolidation shows a decrease of $5.4
million from $38.5 million to $33.1 million. The operating ratio
(operating expenses as a percentage of revenues) for the third
quarter of 2004 was 81.2 percent including Mexrail operations
and 80.4 percent without Mexrail. Operating expenses, without
Mexrail, in the third quarter of 2004 were impacted by an
increase in fuel costs of $5.6 million, an increase of $3.8
million in purchased services and increased car hire and car
lease expenses of $1.1 million as compared to the same quarter
of 2003. Consolidated results include $5.6 million of operating
expenses from Mexrail for the third quarter of 2004 and $15.6
million for the same period of 2003.

NINE-MONTH 2004 OPERATIONAL RESULTS

Consolidated net revenues for the nine months ended September
30, 2004, were $526.9 million, an increase of $3.5 million or
0.7 percent from the nine months ended September 30, 2003. These
results include seven months of consolidated figures, while
August and September are reported using the equity method as a
consequence of the sale to KCS mentioned above. Revenues for the
three consecutive quarters ended September 30, 2004, without
Mexrail grew $10.5 million over the same period of 2003. During
the first nine months of 2004, revenues were negatively impacted
by approximately $7.3 million due to the downturn in the
automotive and intermodal segments and by approximately $14.9
million due to depreciation of the peso. These negative effects
were offset by an important conversion effort and the recovery
of the chemical, petrochemical and steel industries, which along
with the other segments, generated an increase in volume of 5.9
percent over the same period of 2003.

Operating profit for the nine months ended September 30, 2004,
was $95.9 million, resulting in an operating ratio of 81.8
percent. The consolidated operating ratio without Mexrail was
79.7 percent. Operating results included the effect of greater
revenues, fuel costs increases throughout 2004 of $10.8 million
and higher insurance and casualty costs when compared with 2003
expenses.

FINANCIAL EXPENSES

Net financial expenses incurred in the nine months ended
September 30, 2004, were $83.9 million, with $1.8 million of
foreign exchange loss resulting from the depreciation of the
Mexican peso relative to the U.S. dollar.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2004, the accounts receivable balance
increased to $194.3 million from $192.3 million at December 31,
2003.

TFM made capital expenditures of $9.3 million and $33.6 million
during the third quarter and first nine months respectively of
2004, investing in the improvement of TFM and Mexrail lines.

As of September 30, 2004, TFM had an outstanding debt balance of
$881.2 million, including $65.0 million of short-term and $816.2
million of long-term debt. This balance represents a decrease of
$58.7 million when compared to December 31, 2003.

VAT LAWSUIT

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

The Fiscal Court voted against TFM's claim. The Company then
filed in the Fourth Circuit Court an appeal to overrule the
Fiscal Court decision consistent with previous high Court
rulings and is awaiting the high Court's ruling in this matter.
Additionally, the Company has requested a total review of the
action taken by the Fiscal Court by a federal judge of the
Seventh District Court. The Company believes that TFM's claim to
have the VAT certificate updated for interest an inflation
accruals will be upheld by Mexico's legal system. Details on the
VAT litigation can be found in previous Company fillings and
quarterly reports.

GRUPO TFM PUT

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

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

SALE OF MEXRAIL

On August 16, 2004, TFM and KCS announced an agreement for TFM,
to sell to KCS, Mexrail shares representing a 51 percent
ownership of Mexrail for approximately $32.7 million. KCS will
repay to TFM on or before January 1, 2005, certain advances from
TFM in an amount of approximately $9 million.

The sale was made on terms substantially similar to those
previously agreed to by the parties in April of 2003. The
Mexrail shares were placed in a voting trust pending regulatory
approval by the Surface Transportation Board (STB) of KCS's
common control of The Texas Mexican Railway Company, The Kansas
City Southern Railroad Company, and the Gateway Eastern Railway
Company. Under the agreement, KCS has an exclusive option to
purchase the remaining 49 percent of Mexrail through October 31,
2005, and an absolute obligation to purchase those shares before
October 31, 2005. KCS agrees to comply with all prior STB
rulings concerning the international bridge between Laredo and
Nuevo Laredo (the Bridge), and to operate the Bridge under the
terms of the applicable bridge agreements and protocols.

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



=================
N I C A R A G U A
=================

* NICARAGUA: Seeks IMF Financial Support
----------------------------------------
The Letter of Intent from the government of Nicaragua, addressed
to International Monetary Fund (IMF) managing director Rodrigo
de Rato, describes the following policies the country intends to
implement in the context of its request for financial support
from the IMF:

1. We are attaching the Supplementary Memorandum of Economic and
Financial Policies (SMEFP) and a revised Technical Memorandum of
Understanding that reviews economic developments and policy
implementation through end-May 2004 under the PRGF arrangement
approved in December 2002, and sets out specific objectives and
targets for the period June-December 2004. Based on the good
track record and policies adopted, we request completion of the
fifth and sixth reviews under the PRGF arrangement and the
establishment of corresponding performance criteria (PCs) for
end-September and end-December 2004 and a structural PC for
October 15, 2004 (paragraph 4 below). We also present the
following requests for: (i) a waiver for the nonobservance of
the December 2003 quantitative PC on CPS savings (paragraph 2
below); (ii) a waiver for the nonobservance of the mid-May 2004
structural PC on granting legal protection to staff of the
superintendency of banks; (iii) a replacement of the performance
criterion on CPS savings, starting in September 2004 (paragraph
3 below); (iv) the completion of the financing assurance review
(paragraph 5 below); and (v) a set of prior actions for the
completion of the fifth and sixth reviews (paragraph 6 below).

2. Nicaragua's economic performance through May 2004 continues
to be consistent with the program. Macroeconomic policies have
been in line with the PRGF arrangement, and progress has been
made on the structural agenda. Consequently, all quantitative
and structural PCs for end-December 2003 were met, with one
exception, and all end-March 2004 quantitative PCs were also
met. However, a mid-May structural PC was not observed. The end-
December 2003 target for combined public sector (CPS) savings
was missed by a minor amount (0.2 percent of GDP), reflecting a
tax shortfall, which was only partially offset by a lower quasi-
fiscal deficit. The government has taken corrective measures to
address the revenue shortfall and, thus, fiscal targets for the
balance of 2004 remain unchanged. We have strengthened
resolutions of the superintendency of banks and central bank to
cover explicitly the legal expenses of staff sued in the course
of their official duties. We have also requested technical
assistance from the Fund to help draft legislation to strengthen
legal protection for bank supervisors.

3. Reflecting the continued concern over the high public debt
burden, and the priority given to returning Nicaragua's debt
dynamics to a sustainable path, we request the replacement of
the PC on CPS savings with two new PCs-one on the overall
balance of the CPS (after grants), and one on the overall
balance of the central government (after grants).

4. New PCs for end-September and end-December 2004, which were
indicative in the past review, are being requested. We are also
requesting establishment of a new structural PC for October 15,
2004 on submission to the assembly of a draft Fiscal
Responsibility Law. Following HIPC completion, and the
associated accounting methodology changes, only debt service to
multilaterals is recorded in the fiscal accounts at full value,
with relief shown as exceptional financing. Debt service to
other creditors, following recent stock operations, is shown
after all relief.

5. The request for completion of the financing assurances review
is based on satisfactory assurances of external financing
evidenced by the recent successful Paris Club negotiation, the
clearance of arrears on indemnity bonds, and our intent to use
the IDA Debt Reduction Facility to resolve the commercial debt
problem.

6. A set of prior actions is proposed for completion of the
fifth and sixth reviews that includes inter alia implementation
of a budget modification in line with the fiscal program, as
well as fiscal measures to achieve the targeted revenue gains
and expenditure savings (specifics are provided in Table 2 of
the SMEFP).

7. Based on two years of experience with implementation of the
PRSP, as well as the results of a growth seminar held in
Nicaragua earlier this year, we have strengthened the PRSP. We
have completed a first draft of an enhanced PRSP which is now
being discussed within the government and the civil society
before its final adoption.

8. We are committed to continue good faith negotiations with all
non-Paris Club official and private creditors to seek debt
relief at least comparable to that granted by Paris Club
creditors under the enhanced HIPC Initiative.

9. We are confident that the policies and measures set forth in
the SMEFP are adequate to achieve the program's objectives under
the PRGF arrangement. Nonetheless, we stand ready to take, in
consultation with the Fund, further measures that may be needed
for the successful implementation of the program. To this end,
we will continue consulting with the Fund on relevant economic
and financial policies, and provide the Fund with the necessary
data on a timely basis for monitoring purposes. Consistent with
our intention to keep the public informed about our policies and
objectives, the government will publish the SMEFP and will
report on the progress of the program periodically.

10. We propose that for the remainder of the second year of the
arrangement, the Fund carry out program reviews by November 2004
and January 2005, based on the observance, respectively, of end-
June 2004, and end-September 2004 quantitative and structural
performance criteria established in Tables 1 and 2 of the
attached memorandum.

11. We assure you that the government of Nicaragua remains
committed to the implementation of the program.



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

BWIA: Valley Gives Green Light to New Route
-------------------------------------------
TRADE and Industry Minister Ken Valley has authorized BWIA to
fly the new Port of Spain-Curacao-Santo Domingo route, reports
The Trinidad Express.

Since its introduction over a year ago, the Port of Spain-Santo
Domingo route has been heavily subsidized by the Government and
was proving to be unsuccessful.

However, businessmen continued to underline the importance of
that route given the increasing trade between T&T and the
Dominican Republic and its relevance to future economic ties
between the two states.

So it was a relief for the businessmen and Government officials
of T&T, the Dominican Republic and Curacao when Minister Valley
approved the new route.

A temporary permit already has been granted to initiate flights
on the new route within a month.

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



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

BELLSOUTH CORP.: TEM Completes LatAm Acquisition
------------------------------------------------
BellSouth Corporation (NYSE: BLS - News) and Telefonica Moviles
S.A. (NYSE: TEM - News), the wireless affiliate of Telefonica,
S.A. (NYSE: TEF - News), announced Thursday that the two
companies have completed the transfer of BellSouth's ownership
interest in five wireless operations in Latin America: Colombia,
Nicaragua, Peru, Uruguay and Venezuela. Telefonica Moviles has
taken control of the operations of these properties, effective
immediately.

BellSouth will receive $ 2.5 billion for its interests in the
five properties and will recognize a gain of approximately $385
million, or approximately 21 cents per share, in the fourth
quarter of 2004.

The two companies announced in March 2004 that they had reached
a definitive agreement for BellSouth to sell its interests in 10
Latin American operations to Telefonica Moviles. The agreement
provided a purchase price based on total enterprise value of
$5.85 billion. The sale of BellSouth's interest in the
operations in Ecuador, Guatemala and Panama closed on October
14, 2004. The transfer of BellSouth's interest in the operations
in the remaining two Latin American countries (Argentina and
Chile) is subject to obtaining all requisite governmental
approvals. We are working diligently to obtain those approvals,
and we expect to obtain them either in the fourth quarter of
2004 or first quarter of 2005.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications Company
headquartered in Atlanta, Georgia and a parent Company of
Cingular Wireless, the nation's second largest wireless voice
and data provider.


EDC: Closes Sale of $260M 10-Year Senior Notes
----------------------------------------------
AES Corporation (NYSE:AES) subsidiary C.A. La Electricidad de
Caracas (EDC) announced the closing of the sale of US$260
million aggregate principal amount of 10 1/4 % Senior Notes due
in 2014. The Senior Notes were issued by C.A. La Electricidad de
Caracas Finance B.V., a wholly owned subsidiary of EDC, and are
guaranteed by EDC.

EDC plans to use the net proceeds of the offering to refinance
corporate debt, significantly improving EDC's existing debt
maturity profile and amending certain restrictive covenants.

"This deal represents a return of Venezuelan corporations to
long-term markets after a long hiatus and shows investors'
renewed confidence in the Company and country. We appreciate
this expression of confidence by our investors," stated Joseph
C. Brandt, Executive Vice President and Chief Operating Officer
of AES.

"EDC is one of the leading electricity companies in the Americas
and this transaction will greatly enhance its financial
flexibility for the benefit of customers and shareholders
alike," stated Andres Gluski, President and CEO of EDC.

EDC is the largest private utility in Venezuela. Its primary
service area is in the Caracas metropolitan area.

The Senior Notes have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "Securities
Act") and may not be offered or sold in the United States absent
registration or an applicable exemption from the Securities
Act's registration requirements.

About AES

AES is a leading global power company, with 2003 sales of $8.4
billion. AES operates in 27 countries, generating 45,000
megawatts of electricity through 112 power facilities and
delivers electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

CONTACT:  AES Corporation
          Media Contact:
          Robin Pence, 703-682-6552
               or
          Investor Inquiries:
          Scott Cunningham, 703-682-6336
          Web Site: http://www.aes.com/



                            ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

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

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


* * * End of Transmission * * *