TCRLA_Public/050330.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

            Wednesday, March 30, 2005, Vol. 6, Issue 62

                            Headlines



A R G E N T I N A

ALUPEL S.R.L.: Enters Bankruptcy on Court Orders
ANTONIO ANNICCHIARICO: Begins Bankruptcy Process
CESS S.R.L.: Plans Asset Liquidation to Pay Debts
EDEMSA: EdF to Finalize Sale to Iadesa This Week
HARAS SAN PABLO: Gears for Reorganization

HSIN YUAN: Initiates Bankruptcy Proceedings
IRSA: Sells 8% Convertible Notes
SANATORIO QUINTANA: Court Concludes Reorganization
SAN MARCO S.A.: Court Orders Liquidation
TALLERES GRAFICOS: Court Names Trustee For Bankruptcy

TELEFONICA DE ARGENTINA: Places $400,000 Order for Converters
* ARGENTINA: U.S. Court Freezes $7B Defaulted Bonds


B E R M U D A

JACANA FUND: Withdraws From BSX Listing
LORAL SPACE: Releases Updates on Restructuring


B R A Z I L

COPEL: Net Income More Than Doubles in 2004
COPEL: Reveals BRL512 Mln Investment for 2005
GLOBOPAR: Shows Improvement in 2004
ROYAL AHOLD: Reports EUR443Mln Full Year Net Loss in 2004
TELEMAR: Directors to Decide on Dividend Distribution

UNIBANCO: Names Osias Santana de Brito as New IR Head
* BRAZIL: IMF Praises Macroeconomic Stabilization Program


M E X I C O

GRUPO MEXICO: U.S., Mexican Metals Unions Rally for Justice
GRUPO MEXICO: SPCC Shareholders OK Merger With Minera Mexico


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Redeems $40M Senior Notes


U R U G U A Y

COFAC: Resumes Activities Following Central Bank Suspension


V E N E Z U E L A

EDC: Board Approves Dividend Distribution
PDVSA: Looks to Eliminate Discount Practices With New Formulas
PDVSA: To Finance Construction of Houses Using Windfall Revenue

     -  -  -  -  -  -  -  -

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

ALUPEL S.R.L.: Enters Bankruptcy on Court Orders
------------------------------------------------
Alupel S.R.L. began bankruptcy proceedings after Court No. 9 of
Buenos Aires' civil and commercial tribunal ordered the
Company's liquidation. The order effectively transfers control
of the Company's assets to the court-appointed trustee who will
supervise the liquidation proceedings.

Infobae reports that the court selected Mr. Ruben Hugo Faure as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on May 31.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on August 5 followed by the general report that is due on
September 28.

CONTACT: Mr. Ruben Hugo Faure, Trustee
         Avda Rivadavia 1227
         Buenos Aires


ANTONIO ANNICCHIARICO: Begins Bankruptcy Process
------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared Antonio Annicchiarico S.R.L. bankrupt after the Company
defaulted on its debt payments. The order effectively places the
Company's affairs as well as its assets under the control of
court-appointed trustee Graciela Esther Palma.

As trustee, Ms. Palma is tasked with verifying the authenticity
of claims presented by the Company's creditors. The verification
phase is ongoing until May 9.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on June 20. A general report will also be
submitted on August 22.

Infobae reports that Clerk No. 19 assists the court on this case
that will end with the disposal of the Company's assets.

CONTACT: Ms. Graciela Esther Palma, Trustee
         Alicia Moreau de Justo 846
         Buenos Aires


CESS S.R.L.: Plans Asset Liquidation to Pay Debts
-------------------------------------------------
Buenos Aires-based Cess S.R.L. will begin liquidating its assets
following the bankruptcy pronouncement issued by Court No. 8 of
the city's civil and commercial tribunal, reports Infobae.

The ruling places the Company under the supervision of court-
appointed trustee Hector Jorge Garcia. The trustee will verify
creditors' proofs of claims until May 5. The validated claims
will be presented in court as individual reports on June 17.

Mr. Garcia 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 August 16.

Clerk No. 15 assists the court in resolving this case.

CONTACT: Cess S.R.L.
         Carlos Pellegrini 743
         Buenos Aires

         Mr. Hector Jorge Garcia, Trustee
         Paraguay 1591
         Buenos Aires


EDEMSA: EdF to Finalize Sale to Iadesa This Week
------------------------------------------------
State-owned French power company Electricite de France (EdF)
expects to finalize this week the sale of its stake in the
controlling shareholder of Argentine power distributor Edemsa to
the local Iadesa consortium.

In July last year, EdF agreed to sell an 88% stake in the
Sodemsa consortium that owns 51% of Edemsa. Iadesa already owns
the other 12% of Sodemsa. The sale has been close to completion
a number of times but has faced complications in the form of
Argentina's utilities tariff freeze and the refinancing of
Edemsa's US$105 million debts.

Edemsa has some 310,000 clients over its 110,000 sq. km.
concession area.

CONTACT:  EMPRESA DISTRIBUIDORA DE ELECTRICIDAD DE MENDOZA S.A.
          San Martin 322 (5500)
          Mendoza


HARAS SAN PABLO: Gears for Reorganization
-----------------------------------------
Court No. 26 of Buenos Aires' civil and commercial tribunal
issued a resolution opening the reorganization of Haras San
Pablo S.A. The pronouncement authorizes the Company to begin
drafting a settlement proposal with its creditors in order to
avoid liquidation. The reorganization further allows the Company
to retain control of its assets subject to certain conditions
imposed by Argentine law and the oversight of the court
appointed trustee.

Mr. Luis Maria Rementeria will serve as trustee during the
course of the reorganization. He will be validating creditors'
proofs of claims until April 25. The results of the verification
will be presented in court as individual reports on June 7. The
trustee is also obliged to give the court a general report of
the case on August 3. The general report summarizes events
relevant to the reorganization and provides an audit of the
Company's accounting and business records.

The Company is scheduled to present the completed settlement
proposal to its creditors during the informative assembly on
February 2 next year.

CONTACT: Haras San Pablo S.A.
         Avda Cordoba 1417
         Buenos Aires

         Mr. Luis Maria Rementeria, Trustee
         Piedras 1319
         Buenos Aires


HSIN YUAN: Initiates Bankruptcy Proceedings
-------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared Hsin Yuan S.A. "Quiebra," reports Infobae.

Mr. Norberto Aurelio Alvarez, who has been appointed as trustee,
will verify creditors' claims until April 29 and then prepare
the individual reports based on the results of the verification
process. The individual reports will be submitted in court on
June 13, followed by the general report on August 16.

The city's Clerk No. 19 assists the court on the case that will
close with the liquidation of the Company's assets. Proceeds
from the asset sale will be used to repay the Company's debts.

CONTACT: Mr. Norberto Aurelio Alvarez, Trustee
         Rodriguez Pena 189
         Buenos Aires


IRSA: Sells 8% Convertible Notes
--------------------------------
By letter dated March 14, 2005, the Company reported that IRSA
Inversiones y Representaciones Sociedad Anonima have sold
3,754,271 Convertible Notes with an 8% interest (with warrants)
and due on 2007. This transaction is common in the financial
market and any implication in our share position in relation
with the issuing company (IRSA), because these Convertible Notes
are not converted.

CONTACT: (IRSA) Inversiones y Representaciones S.A.
         1066
         Bolivar 108
         Buenos Aires, Argentina
         Phone: 541-342-7555


SANATORIO QUINTANA: Court Concludes Reorganization
--------------------------------------------------
The reorganization of Sanatorio Quintana S.A has been concluded.
Data revealed by Infobae on its Web site indicated that the
process closed after Court No. 20 of Buenos Aires' civil and
commercial tribunal, with assistance from Clerk No. 40,
homologated the debt agreement signed between the Company and
its creditors.


SAN MARCO S.A.: Court Orders Liquidation
----------------------------------------
San Marco S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 3 of San Carlos de
Bariloche's 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 Mr. Rodolfo Jose
Guillaumet as trustee. Mr. Guillaumet closed the verification of
creditors claims on March 18. The verified claims will be the
basis for the individual reports to be presented for court
approval on April 15. The trustee will also submit a general
report on May 31.

CONTACT: San Marco S.A.
         Belisario Roldan 740
         Ingeniero Jacobacci (Rio Negro)

         Mr. Rodolfo Jose Guillaumet, Trustee
         Vice Alte O Connor 665
         San Carlos de Bariloche (Rio Negro)


TALLERES GRAFICOS: Court Names Trustee For Bankruptcy
-----------------------------------------------------
San Isidro accountant Susana Mabel Costa was assigned trustee
for the liquidation of local Company Talleres Graficos Jorcris
S.R.L., relates Infobae.

Ms. Costa will verify creditors' claims until April 13, the
source adds. After that, she will prepare the individual reports
that are to be submitted in court on May 26. The general report
submission should follow on June 28.

The city's Court No. 24 holds jurisdiction over the Company's
case.

CONTACT: Talleres Graficos Jorcris S.R.L.
         Panama 3435 Munro
         Partido de Vicente Lopez

         Ms. Susana Mabel Costa, Trustee
         Ituzaingo 325 Casillero 573/31 (OG)
         San Isidro


TELEFONICA DE ARGENTINA: Places $400,000 Order for Converters
-------------------------------------------------------------
Ormat Technologies Inc. (NYSE-ORA) has announced that its wholly
owned subsidiary, Ormat Power Inc., has received a new order
from Telefonica de Argentina S.A. for ORMAT Energy Converters
(OEC) to power four microwave repeater sites along the Comodoro
Rivadavia - Ushuaia telecommunications link in Patagonia where
the existing link has been expanded. The initial link began
operations in the early 1970s with one analog Thomson CSF radio.
Already then, ORMAT Energy Converters using LPG were the
preferred energy source for the repeaters located in isolated
sites. Thirty-three years after their original installation,
most of these units are still operational.

The present order totals approximately $400,000. Lucien
Bronicki, Chairman and CTO of ORMAT Technologies, Inc., noted,
"This is a modest order, but it is indicative of our customers'
confidence in ORMAT's products for their stringent applications,
as well as appreciation of Ormat's dedicated long-term service."

OECs have been powering similar telecommunication applications
around the globe. In Latin America, and Argentina in particular,
ORMATEnergy Converters have been a critical power source since
1969.

ORMAT brings four decades of experience and continuous
improvement of its unique power system technology. The ORMAT
Energy Converter is a hermetically sealed Closed Cycle Vapor
Turbogenerator (CCVT) capable of providing a continuous power
supply at remote off-grid sites, such as backbone
telecommunication links, cellular phone repeaters, unmanned
offshore platforms, oil & gas pipeline cathodic protection, data
transmission, and remote control. The OEC is a fully integrated
and tested certified power unit ready-for-installation on site
and fuelled by natural gas, LPG, kerosene or diesel fuel. As of
December 2004, more than 2400 OEC's ranging from 200 to 4000 W
have been supplied to 58 countries. Some of the units have been
in continuous operation 24 hours a day for more than 30 years,
without overhaul.

CONTACT: Telefonica de Argentina S.A.
         Suipacha 150
         Piso 8
         Buenos Aires, 1008
         Argentina
         Phone: 54-11-4332-9200
         Web site: http://www.telefonica.com.ar


* ARGENTINA: U.S. Court Freezes $7B Defaulted Bonds
---------------------------------------------------
A U.S. federal court last week froze up to US$7 billion in
defaulted Argentine bonds, a move that could jeopardize the
country's debt swap.

Judge Thomas Griesa of the New York Federal District court froze
the bonds held by the Bank of New York Company, Inc. -
Argentina's exchange agent in its debt swap - while he hears a
case brought by a disgruntled creditor suing for its cash.

NML Capital, a Cayman Island-based investor that holds US$204
million in bad debt, asked Judge Griesa to attach the old bonds,
due to be swapped for new ones through the Bank of New York,
claiming they were property of creditors.

"On March 21 the judge issued an order for an attachment in two
of the bond cases by NML against the Republic of Argentina," the
court said in a statement on Friday.

"The order does provide for the attachment of up to US$7 billion
dollars in Argentine bonds, which ... were currently being held
by the Bank of New York as a consequence of Argentina's exchange
offer," the statement said.

The court said Argentina's lawyers in New York were seeking to
reverse the attachment.

Meanwhile, Argentina's foreign minister criticized the U.S.
federal court's decision to freeze the bonds.

"We believe the decision taken by the judge will be corrected
very soon. We think it was a mistake," Foreign Minister Rafael
Bielsa told a news conference during a visit to the Turkish
capital.

He explained that the US$7 billion in question belonged not to
the Argentine government but to those who had extended credit to
it and that it was therefore not appropriate for the court to
take action against his country.



=============
B E R M U D A
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JACANA FUND: Withdraws From BSX Listing
---------------------------------------
The Bermuda Stock Exchange (BSX) announced Monday that Jacana
Fund Ltd. (JACANAF BH) voluntarily withdrew from listing
effective 28 March 2005. The withdrawal from listing was made
pursuant to a resolution of the Members of the Fund placing the
Fund in voluntary liquidation.


LORAL SPACE: Releases Updates on Restructuring
----------------------------------------------
On July 15, 2003, Loral Space & Communications Ltd. and certain
of its subsidiaries filed voluntary petitions for reorganization
under Chapter 11 of Title 11 of the United States Code in the
United States District Court for the Southern District of New
York and parallel insolvency proceedings in the Supreme Court of
Bermuda in which certain partners of KPMG were appointed as
joint provisional liquidators.

On March 23, 2005, Loral Space & Communications Ltd. ("Loral" or
the "Company") filed an amended monthly consolidated operating
report for the period of November 20, 2004 through December 31,
2004 with the U.S. Bankruptcy Court for the Southern District of
New York (the "Bankruptcy Court").

On March 25, 2005, Loral Space & Communications Ltd. filed an
amended monthly consolidated operating report for the period of
January 1, 2005 through January 28, 2005 with the Bankruptcy
Court. Copies of these reports may be obtained from the
Bankruptcy Court's website located at
http://www.nysb.uscourts.gov.

CONTACT: Loral Space & Communications Ltd.
         c/o Loral SpaceCom Corp.
         600 Third Ave.
         New York, NY 10016
         USA
         Phone: 212-697-1105
         Web site: http://www.loral.com



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

COPEL: Net Income More Than Doubles in 2004
-------------------------------------------
Companhia Paranaense de Energia (COPEL) (NYSE: ELP LATIBEX: XCOP
BOVESPA: CPLE3, CPLE5, CPLE6), a Company that generates,
transmits, and distributes electric power to the State of
Parana, announced its operating results for 2004. All figures
included in this report are in Reais (R$) and were prepared in
accordance with Brazilian GAAP (corporate law).

HIGHLIGHTS:

- Net Operating Revenue: R$ 3,925.8 million - a 26.9% increase
compared to 2003.

- Operating Income: R$ 600.2 million - a 99.2% increase compared
to 2003.

- Net Income: In 2004, COPEL's net income reached R$ 374.1
million (R$ 1.3672 per thousand shares). This result was 118.6%
higher than the result posted in the previous year.

- Increase of 1.4% in total power consumption throughout direct
distribution area in 2004.

- EBITDA (income before interest, taxes, depreciation and
amortization): R$ 910.2 million in 2004 (a 108.1% growth in
comparison to 2003).

- Shareholders' Equity return: 7.86% p.a.

- Shareholders' Equity Indebtedness: 35.65 %.

In 2004, COPEL consolidated in its balance sheet Compagas'
statements. In order to maintain the comparison base, 2003
financial statements were reclassified.

4Q04 KEY EVENTS:

- Market expansion: Total power consumption throughout COPEL's
direct distribution area grew by 1.4% in 2004.

Residential, commercial, and rural consumer segments grew by
1.9%, 5.6%, and 5.6%, respectively. The good performance of the
commercial segment is due to the modernization of the sector and
to the opening of new businesses. The number of commercial
customers billed in December 2004 was 3.5% greater than that of
December 2003. The growth in the rural segment is due mainly to
the increase in exports of agricultural, livestock, and agro-
industrial products, which resulted in higher income for the
producers, enabling them to invest in electric machinery.

Industrial consumption throughout COPEL's concession area
dropped by 1.4% compared to 2003 on account of some unregulated
(free) industrial customers having ceased to be COPEL's clients.
Had it not been for these customers, the industrial segment
would have recorded a growth of 8.5%, and total power
consumption throughout COPEL's concession area would have
increased by 5.5%.

- Overdue customers: The rate adjustment discount afforded to
electricity bills paid when due has caused a significant drop in
the level of delinquency. In June 2003, overdue bills accounted
for R$ 187.0 million, or 5.4% of the Company's 12-month gross
revenues. In December 2003, this figure had dropped to 2.6% of
the 12-month gross revenues, or R$ 114.0 million, and in
September 2004, it reached R$ 118,8 million (or 2.7% of gross
revenues). At the end of 2004, the rate of overdue bills was
further reduced to 2.3% of gross revenues (or R$ 106.8 million).

To calculate the levels of overdue bills, the amounts overdue
for 15 to 360 days are divided by the 12-month gross revenues.

- UEG Araucaria: On August 14th 2003, COPEL filed a lawsuit
against UEG Araucaria ("Acao Cautelar de Producao Antecipada de
Provas"), which is currently at its final stage: the court-
ordered expert investigation has already been concluded, and the
resulting report shall soon be submitted to court. Under this
lawsuit COPEL aims to gather proof in advance to demonstrate the
current technical impossibility of operating the facility in a
continuous, safe, and permanent manner.

The preliminary arbitration hearing before the Chamber of
International Trade in Paris, scheduled for February 22nd 2004,
was postponed, after its opening, to April 15th 2004. At that
time, COPEL expressly reinforced its refusal to accept
arbitration, pointing out to the fact that a Brazilian court had
judged to be null and void the clause providing for arbitration
in the disputed contract, which led to the procedures in Paris.

In July 2004, another hearing took place in Paris, and COPEL
again restated its position. On December 6th 2004, the
Arbitration Court ruled by majority vote that it had
jurisdiction over the issues at hand, but assured that it would
not consider administrative decisions already taken by the
National Electric Energy Agency (ANEEL), such as the refusal to
ratify the agreement between UEG Araucaria and COPEL. This
ruling, however, will not influence or change the decisions of
the Brazilian courts regarding the same matter.

Even though COPEL will not recognize the jurisdiction of the
Arbitration Court over this matter, it will continue to defend
its interests before it, to prevent that the proceedings go on
in absentia. By May 15th 2005, the Company shall submit a
statement justifying its counterclaims against UEG Araucaria and
listing the pieces of evidence it intends to submit before the
Arbitration Court.

In early 2005, a committee was assembled with representatives of
COPEL, Petrobras, and El Paso in order to negotiate a final deal
regarding the issues of UEG Araucaria.

- Centrais Eletricas do Rio Jordao S.A. (Elejor): On December
18th 2003, COPEL signed a stock purchase agreement with Triunfo
Participacoes to acquire their 30% interest in Elejor, thus
increasing the Company's stake from 40% to 70% of the power
plant's common shares. According to the agreement, this
transaction would be effective upon approval by ANEEL, by the
Council for Economic Law (CADE), and by the House of
Representatives of the State of Parana. On July 28th 2004, ANEEL
issued Resolution 302, approving the increase in COPEL's stake
in Elejor. The State House of Representatives approved the deal
under Law no. 14,501, dated September 14th 2004, as did CADE, at
ordinary session no. 330 on September 15th 2004. Thus, on
October 8th 2004, the transfer of Elejor's common stock from
Triunfo Participacoes to COPEL was concluded.

- COPEL's Fiftieth Anniversary: In celebration of its fiftieth
anniversary, which occurred on October 26th, 2004, COPEL -
besides other ceremonies held in Parana -- rang the opening bell
at the New York Stock Exchange on November 22nd.

- Electricity Auction: COPEL participated in the 1st auction of
existing electricity, which took place on December 12th 2004.

- Reduction in the Rate Discount: As of February 1st 2005, the
average discount afforded to customers who pay their bills when
due was set at 8.2% off the rates approved under ANEEL
Resolution no. 146/2004, thus resulting in an average rate
increase of 5%.

- Debentures: In February 2005, COPEL successfully renegotiated
the second series of the second issue of debentures in the
amount of R$ 100 million yielding the DI rate plus 1.5% per
annum. Before this renegotiation, the DI rate was 1.75%. In
March 2005, the Company filed with CVM (the Brazilian Securities
and Exchange Commission) a request for registration of a R$ 1
billion Debenture Program. The first series will amount to R$
400 million, which will be used to pay back US$ 150 million in
Eurobonds issued in 1997.

- CRC Agreement: Under the 4th amendment to the CRC Agreement,
signed on January 21st 2005, COPEL and the State Government
renegotiated the outstanding CRC account balance of R$
1.197million, which shall now be paid in 244 installments
recalculated under the "Price" amortization schedule, starting
on January 30th 2005.

The renegotiated amount includes, in addition to future
installments, the overdue installments, restated according to
the IGP-DI inflation index plus interest rate of 1% per month.
The remaining clauses of the original agreement will continue in
effect.

The Government of Parana has been paying the renegotiated
installments when due according to the 4th amendment to the
agreement.

- Compagas: In the fourth quarter, COPEL consolidated COMPAGAS
financial statements due to its 51% interest in the Company. To
ensure data comparability, COPEL reclassified its 2003 financial
statements.

FINANCIAL AND OPERATING PERFORMANCE:

Market Expansion

In 2004, total power consumption through direct distribution
reached 17,669 GWh, up by 1.4% versus the volume recorded in
2003. Taking into consideration free consumers outside the State
of Parana, total consumption reached 18,736 GWh. This
consumption growth reflects, mainly, the increase in the
commercial and rural segments, both recording a 5.6% variation.

The good performance of the commercial segment is mainly due to
its modernization and to the implementation of new commercial
businesses in the State. The number of commercial consumers grew
by 3.5%, totaling 9,083 new connections during the period.

Rural segment growth is mainly due to increased exports of
agricultural and agribusiness products, which increased rural
producer's income and as a consequence the acquisition of
electrical equipment. Rural segment consumers grew by 1.7%,
corresponding to 5,606 new connections in 2004.

Industrial consumption at Copel's concession area dropped 1.4%
compared with the same period of the previous year, because some
major unregulated (free) consumers dropped from Copel's consumer
base. Excluding such consumers from the comparison base,
industrial segment would have increased by 8.5%, and the total
power consumption at Copel's concession area would have
increased by 5.5%. The number of industrial consumers grew by
2.0% compared to the previous year.

The residential segment increased by 1.9% compared with the same
period of the previous year. In 2004, 66,772 new consumers were
added to our consumer base.

In December 2004, Copel's total number of consumers amounted to
3,180,070, up by 2.7% compared to December 2003, corresponding
to 84,583 new consumers (not considering COPEL's consumers
outside the State of Parana).

Revenues

Net operating revenues in 2004 reached R$ 3,925.8 million, up
26.9% compared to R$ 3,094.3 million recorded in 2003. This
increase reflects, mainly, the reduction in the discount granted
to consumers in full performance of payments. The amounts paid
by those consumers were adjusted by 15%, on average, on
01/01/2004 and 9% on 06/24/2004; higher supply revenues due to
greater power sales via bilateral contracts, especially with
Celesc; and the increase in revenues for the use of transmission
network following the transmission tariff adjustment approved by
ANEEL Resolution 307, as of June 30, 2003, and ANEEL 71, as of
June 30, 2004, besides the incorporation of new assets to the
base transmission network and the re evaluation of the use of
distribution tariff (TUSD) during the Tariff Revision Process.
The "Piped Gas Distribution" section relates to revenues coming
from Compagas' gas distribution.

Revenue Deductions

Pursuant to the Federal Laws # 10,637 and 10,833 the calculation
base for PIS and COFINS changed and rates were increased. Due to
these changes, there was an increase in PIS expenses from
December 2002 to December 2004 and in COFINS expenses from
February 2004 to December 2004.

ANEEL, through directive release # 302/2005-SFF/ANEEL,
acknowledges the Company's indemnity rights over any additional
costs related to PIS and COFINS, defining that concession
companies should appraise the financial impact resulting from
the changes in PIS and COFINS criteria until the end of the
fiscal year and recognize the amount on the accounting book.
Based on such dispositions the Company recorded R$ 80.4 million,
in accordance with the criteria established by ANEEL, as Long-
Term Current Assets, which was offset by lower PIS and COFINS
expenses.

The Company estimates that the recorded amount will be recovered
in the form of tariff as from July 2005, considering that the
update criteria and the recovery term are still subject to
ANEEL's definition.

Operating Expenses

In 2004, total operating expenses reached R$ 3,324.5 million,
versus R$ 2,953.2 million recorded in 2003. The main reasons for
this variation were:

The drop of 11.6% in the "energy purchased for resale" line,
because of the reduction in the amount accounted from CIEN, due
to the renegotiation of agreements and the "Real" appreciation
versus the US dollar, as well as "CVA" amortization in the
amount of R$ 30.7 million. The main amounts recorded are the
following: R$ 439.5 million from ITAIPU, R$ 322.0 million from
CIEN, R$ 44.1 million from Dona Francisca and R$ 68.2 million
from Itiquira.

The increase in "use and transmission grid" is mainly due to
tariff readjustments confirmed by ANEEL Resolution 307, of June
30, 2003 and by ANEEL Resolution 71, of June 30, 2004 and also
to the accounting of R$ 35.6 million from CVA recovery.

The 13.9% increase in "personnel" line, chiefly due to pay rises
from collective labor agreement in October 2003 (10%), March
2004 (5.5%) and October 2004 (6.5%), and hiring of new
employees.

The increase in "pension plan and other benefits" line was due
to expenses arising from retirement benefits (CVM Deliberation
371/2000). Besides the estimated actuarial amount, Copel is
accounting R$ 37.2 million in 2004 as deficit recorded in the
previous year.

As a result of the consolidation of Compagas, the "raw material
and supply for electric power production" line reflects the
amount of purchased gas and other raw material payable to third-
parties, as well as the accounting of the "take or pay" clause
from the gas purchase contract for UEG Araucaria signed with
Compagas. The total amount of natural gas purchased for UEG
Araucaria, in 2004, was R$ 236.2 million.
The "natural gas purchased for resale and gas operation input"
line refers to the total natural gas purchased by Compagas from
Petrobras.

Increase in "regulatory charges", under which the following
items were booked: Fuel Consumption Account - CCC (R$ 189.3
million), financial compensation for the utilization of water
resources (R$ 56.0 million), Energy Development Account - CDE
(R$ 104.4 million) and ANEEL's Electric Power Services Oversight
Fee among other services (R$ 8.7 million). In 2004 R$ 9.7
million from CVA were amortized at CCC, and R$17.9 million at
CDE.

The increase in "other operations expenses" mainly due to the
inversion of ICMS to be compensated - Kandir Law. The State
government confirmed, in favor of Copel Distribution, the right
of immediate ICMS credit, in the original amount of R$ 167.5
million, highlighted at COPEL's permanent assets acquisition,
which had been discounted from ICMS collection in a forty eight-
month period, updated by the Conversion and Update Factor - FCA.

From September 2002 until May 2004, 21 installments were
discounted, totaling R$ 80.6 million. Due to the refusal of such
right to COPEL from the State Government, the Company made the
accounting inversion of such tax, originating an ICMS debt
regarding the 21 installments paid until then. Such expense was
paid through the compensation of part of the amount received
from the Parana State Government, regarding the CRC account,
resulting in an R$ 107.7 million operation expense.

EBITDA

Earnings before interest, taxes, depreciation and amortization -
EBITDA reached, in 2004, R$ 910.2 million, up by 108.1% in
comparison to the amount recorded in the previous year (R$ 437.3
million).

Financial Results

The financial income increased by 27.6% in 2004, mainly due to
higher interest income, fees and monetary variation in the
period due to the stronger variation in IGP-M index used to
readjust the amounts under CRC transferred to the Parana State
Government, of 7.7% in 2003 and 12.1% in 2004.

Financial expenses increased by 129.8%, mainly due to a lower
impact of the "Real" appreciation against the US dollar in the
year. Other factors that contributed to this increase were the
increase of arrears charges, mainly regarding natural gas
purchase for UEG Araucaria (R$ 81.5 million), and the
appropriation of charges from derivative operations in the
amount of R$ 90.9 million.

Operating Result

COPEL's operating result in 2004 totaled R$ 600.2 million, up by
99.2% over the amount recorded in 2003.

Non-Operating Result

The non-operating result recorded in the period was mainly a
reflection of the net effect of the deactivation/sale of goods
and rights registered under permanent assets.

Net Income

In 2004, COPEL recorded net income of R$ 374.1 million, 118.6%
above the amount recorded in the previous year. This result was
influenced, primarily, by the reduction in the discount granted
to consumers in full performance of payments (increases of
average 15%, in average passed on to consumers on January 1st,
2004, and of average 9% on June 24th, 2004).

COPEL's Board of Directors has deliberated the amount of R$ 96.1
million for paying interest on own capital, as dividends, to
shareholders, which will be submitted to the Annual
Shareholders' Meeting to be held in April 2005.

Balance Sheet and Capex (Assets)

On 12.31.2004, COPEL's total assets amounted to R$ 9,879.3
million.

COPEL's Capex program amounted to R$ 441.5 million in 2004, of
which R$ 18.3 million were allocated to power generation
projects, R$ 88.6 million to transmission projects, R$ 233.8
million to distribution works, R$ 43.3 million to telecom, R$
20.2 million to gas plumbing (Compagas) and R$ 37.3 million to
minority stock interests.

Balance Sheet (Liabilities)

As of December 31, 2004, COPEL's total debt amounted to R$
1,831.3 million, representing a debt / shareholders' equity
ratio of 35.7%.

COPEL's shareholders' equity ended 2004 at R$ 5,136.3 million,
representing a 5.7% increase over 2003, and equivalent to R$
18.77 per thousand shares.

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

CONTACT: Copel Investor Relations Department
         Mr. Ricardo Portugal Alves
         Phone: (55)(41) 331-4311
         Ms. Solange Maueler Gomide
         Phone: (55) (41) 331-4359
         E-mail: ri@copel.com
         Web site: http://www.copel.com/


COPEL: Reveals BRL512 Mln Investment for 2005
---------------------------------------------
Copel will increase this year's investment by 16% to BRL512
million from 2004 as it continues to improve its distribution
and transmission systems, Dow Jones Newswires reports, citing a
Company top official.

Rubens Ghilardi, Copel's chief executive and chief financial
officer, revealed that the Company plans to spend BRL214 million
on its distribution system and BRL210 million on its
transmission lines.

This year's investment doesn't include a budget for spending on
any new power plants but the Company is interested in bidding
for concessions to build new plants at auctions planned by the
government later this year, particularly for any within Parana,
Ghilardi said.

The executive hinted at forming partnerships with private-sector
companies to bid for concessions. However, to meet the terms of
a state law from 2003, Copel would have to retain majority
control of any joint venture.

"If private partners can accept those terms, then we would bid
together," Ghilardi said.


GLOBOPAR: Shows Improvement in 2004
-----------------------------------
Globo Comunicacoes e Participacoes S.A. ("Globopar") announced
Monday financial results for Globopar and its subsidiaries
("Globopar Consolidated") and for TV Globo ("TV Globo") for the
year ended December 31, 2004. Financial statements in this
release are prepared in accordance with Brazilian GAAP and
expressed in Brazilian Reais. Comments are focused on the
Globopar Consolidated and TV Globo aggregate (together the
"Company") pro-forma results with financial highlights provided
for the main companies within business segments.

RELEVANT AND RECENT EVENTS:

Globopar's Debt Restructuring Process

As announced on October 29, 2004, Globopar has reached an
agreement in principle with members of the Bank and Bondholder
Steering Committees regarding the restructuring of its debt.

On February 10, 2005, Globopar launched its debt-restructuring
proposal to its creditors, disclosing all conditions and terms
of the conversion of its financial indebtedness into converted
notes and, in certain circumstances, cash. The main conditions
are described in Note 19 to the Globopar Financial Statements.

On March 17, 2005, Globopar received noteholder approval of its
debt restructuring proposal in two of its outstanding bond
series, the US$ 80 million 9.875% Notes due 2004 issued by
Globopar Overseas Ltd. and the US$100 million 9.875% Series A
Guaranteed Notes due 2004 issued by Globopar. Globopar adjourned
the March 17 meetings scheduled with respect to each of its four
remaining bonds series to April 21 as the required quorum of 75%
of outstanding bonds was not obtained. Under the terms of the
Globopar debt agreements, the quorum requirement for each of
these meetings as adjourned is lowered to 25% of outstanding
bonds.

Sale of an Interest in Net Servicos to Telmex

On March 22, 2005, Globopar announced the completion of the
transactions relating to the sale by Globopar and some of its
subsidiaries (together referred in this section and in the next
as "Globo") of an interest in Net Servicos to Latam, a
subsidiary of Telmex.

As a result of this transaction Globopar received net proceeds
of approximately US$ 185 million. At the closing of Globopar's
proposed debt restructuring, in accordance with agreements
reached with the Bank and Bondholder Steering Committees,
approximately US$ 102 million of the net proceeds will be
distributed to Globopar's creditors as prepayment of the
converted notes to be issued by Globopar and approximately US$83
million will be placed into a collateral account for the benefit
of Globopar's secured creditors.

Pursuant to the terms of the transactions with Telmex, Globo
transferred to GB Empreendimentos e Participacoes S.A. ("GB"), a
wholly-owned subsidiary of Globo prior to the transaction, 51%
of Net Servicos' total voting capital. Subsequently Globo
transferred to Latam 49% of GB's total voting capital and all
preferred shares of GB, as well as 29.29% of Net Servico's
voting capital.

The structure of the sale of an interest of Net Servicos to
Telmex, summarized above, was previously approved by Anatel
(Brazilian Telecommunications Agency).

Net Servicos Debt Restructuring Conclusion

On March 22, 2005, Net Servico's debt restructuring was
concluded, which had an aggregate acceptance of 98% of the total
gross indebtedness to which the restructuring proposal was made.
Upon the conclusion of the debt restructuring, Net Servicos will
be controlled by GB, which on its turn will be controlled by
Globo, which will maintain its control in Net Servicos.

Merger of Sky Brasil and DIRECTV Brasil

On October 11, 2004, Globopar, News Corp and DirecTV announced
an agreement to merge Sky Brasil and DirecTV Brasil, two
Brazilian DTH pay-TV service providers. Until the merger is
finalized, Sky Brasil and DirecTV Brasil will continue to
operate independently and to provide the same services to their
respective customers. After the merger, DirecTV Brasil
subscribers will have the opportunity to migrate to Sky Brasil,
which will be the surviving platform and will continue to
operate under the ``Sky'' brand. Globopar will serve as the
supplier of Brazilian programming content to Sky Brasil and
after the merger, to the combined platform. The parties believe
this transaction will best position Sky Brasil to meet the
continuing competitive challenges raised by other players in the
pay-TV market in Brazil.

In connection with these transactions, Globopar, which no longer
controls Sky Brasil, has been released from all future funding
obligations to Sky Brasil including after the merger. News Corp
has also agreed to indemnify Globopar with respect to Globopar's
guarantee of the obligations of Sky Brasil and obligations
related to DTH Techco, Sky Partners and Sky Multi-Country in the
approximately total amount of US$ 220 million as previously
disclosed. (See Note 1 (k) to the Globopar Financial
Statements).
This abovementioned transactions, related to Net and Sky Brasil,
represent a clear execution of Globopar's strategy to reduce its
economic participation in businesses outside its core content
production and programming business, while retaining a
sufficient controlling role in such businesses to meet its
strategic needs.

TV Globo's Report of Independent Auditors: Qualified Opinion

The Report of Independent Auditors for TV Globo's Financial
Statements as of December 31, 2004 and 2003 was issued with a
qualified opinion for 2004 due to the uncertainty of realization
of deferred tax and social contribution credits related to tax
losses carry forwards.

The main reason for these credits becoming inactive is the
realization of the corporate reorganization, whereby the
operations of TV Globo and Globopar will be combined, which will
eliminate the possibility to transfer such credits to the
remaining entity.

However, TV Globo's management have determined not to record a
valuation allowance due to the fact that these credits are
expected to be replaced by credits of the same nature at the
surviving entity.

Financial Statements Presentation:

Globopar's Consolidated Financial Statements include
proportional consolidation for certain of its subsidiaries,
complying with the criteria established by the CVM (Comissao de
Valores Mobiliarios, the Brazilian equivalent of the U.S.
Securities and Exchange Commission). Subsidiaries that are
proportionately consolidated include Net Servicos (46.97%),
Telecine (50%) and USA Brasil (50%). Since September 2002, Sky
Brasil and its subsidiaries have been recognized by Globopar
under the equity method. The consolidated financial statements
include proportional consolidation according to Globopar's
ownership interest at the end of each year.

On July 1, 2003, certain net assets of Globo.com, and its
holding Company, Globo.Rede, were merged into TV Globo. In 1H03,
the results of Globo.com and Globo.Rede were recognized by TV
Globo under the equity method and therefore were no longer
consolidated by Globopar. In order to facilitate performance
comparisons with 2004, net revenue and EBITDA for Globopar
Consolidated and TV Globo for 2003 are presented on a pro-forma
basis including Globo.com's figures, as if consolidated into the
aggregate Company entity in 2003.

On March 31, 2004, TV Globo acquired 97.968% of the capital of
Sistema Globo de Gravacoes Audiovisuais Ltda. ("Sigla") from
Globopar and a third party. Sigla is Globo Organizations'
principal investment in the sound recording industry, which
produces and sells, among other things, the soundtracks of the
soap-operas (telenovelas) produced by TV Globo. As a result of
this acquisition, Sigla's financial results were recognized by
TV Globo in 2004 under the equity method, and therefore Sigla's
financial results have not been consolidated into Globopar since
the beginning of 2004. As Sigla's 2004 figures were not
consolidated into either Globopar or TV Globo (due to the usage
of the equity accounting method), in order to facilitate
performance comparison of 2004 with 2003, proforma aggregate net
revenue and EBITDA include Sigla's 2004 results.

FINANCIAL HIGHLIGHTS:

Globopar Consolidated, TV Globo (including Globo.com) and Sigla

The Company's aggregate consolidated pro-forma (Globopar
Consolidated, TV Globo (including Globo.com) and Sigla) net
revenue totaled R$ 2,727.1 million in 2H04, R$ 420.5 million
higher than R$ 2,306.6 million in 2H03. EBITDA for 2H04 was R$
631.5 million, compared to R$ 453.6 million in 2H03, reflecting
EBITDA improvement across the following business segments: TV
Globo (R$ 150.3 million higher), Globopar holding (R$ 41.7
million higher, R$ 32.3 million of which is related to TV
Globo's rental), Net Servicos (R$ 13.4 million higher), Globosat
(R$ 23.9 million higher), Editora Globo (R$ 20.5 million higher)
and Globo Cochrane (R$ 2.6 million higher).

For the full year ended December 31, 2004, the Company's
aggregate consolidated pro-forma net revenue totaled R$ 4,978.3
million, R$ 854.9 million higher than R$ 4,123.4 million in
2003.

EBITDA for 2004 was R$ 1,245.4 million, compared to R$ 720.3
million in 2003, reflecting EBITDA improvement across the
following business segments: TV Globo (R$ 271.9 million higher),
Globopar holding (R$ 202.7 million higher, R$ 197.1 million of
which is related to TV Globo's rental), Globosat (R$ 48.0
million higher), Net Servicos (R$ 13.4 million higher), Editora
Globo (R$ 9.1 million higher), sound recording companies (R$ 7.3
million higher) and Globo Cochrane (R$ 6.3 million higher).

The appreciation of the Real against the US dollar during 2004
contributed approximately R$ 267.8 million to a total 2004 net
income of R$ 399.6 million as a result of the positive foreign
exchange rate impact of the Company's foreign denominated debt
position. This is compared to the net income of R$ 168.4 million
reported in 2003, which had a positive benefit of R$ 668.0
million related to the appreciation of the Real against the US
dollar during 2003. As a consequence of this net income
improvement, resulting mainly from the foreign exchange
conversion effect, the Company presented an aggregate
stockholders' deficit of R$ 1.7 billion as at December 31, 2004
and R$ 2.0 billion as at December 31, 2003.

Pro-forma Financial Highlights of the "Television and
Entertainment Companies"

The "Television and Entertainment Companies", comprised of the
entities that will generate the cash to service debt repayment,
includes a pro-forma combination of the accounts of Globopar, TV
Globo (including Globo.com), Globo International, Globosat,
Sigla, Sigla da Amazonia and Zende.

Revenues for the "Television and Entertainment Companies"
increased from R$ 3,508.3 million in 2003 to R$ 4,296.7 million
in 2004. EBITDA for this group of companies was R$ 532.7 million
in 2003 and R$ 1,031.0 million in 2004 and their cash and cash
equivalents position was R$ 958.5 million as of December 31,
2004.

Results of main companies whithin business segments for the
semester and year ended December 31, 2004:

The performance of the Company's main businesses presented in
this section reflect full performance figures for these
businesses. Net Servicos and Telecine are proportionately
consolidated according to Globopar's ownership interest and Sky
is recognized in accordance with to the equity method.
Therefore, their performance presentation differs from
Globopar's attached Financial Statements.

Broadcast Television (TV Globo)

In 2003, following the consolidation of the new government, the
Brazilian economy experienced renewed growth, particularly
during the second half of the year. During 2004, in line with
the continued recovery of the Brazilian economy, TV Globo
experienced increased advertising revenues. In order to better
understand and compare TV Globo's performance in 2004 with the
prior year, a proforma breakdown is provided in the tables
herein. This pro-forma information excludes R$ 30.8 million
related to the 2002 World Cup deferred transmission rights
expensed in 2003. Proforma figures also include R$ 12.2 million
of net revenue and R$ 35.5 million of costs and expenses related
to Globo.com's results for 1H03, reflecting Globo.com's merger
as of July 1, 2003.

TV Globo's net revenue was R$ 2,092.7 million in 2H04, an
increase of 23.3% (or R$ 395.0 million) compared to 2H03. As
reflected in the pro-forma figures for the full year, net
revenue was R$ 3,772.7 million in 2004, an increase of 26.4% (or
R$ 788.9 million) over 2003. This increase was due to the
recovery of the Brazilian advertising market.

Advertising revenues from related parties were R$ 70.7 million
in 2H04, an increase of 25.5% over 2H03. For the full year of
2004, these revenues totaled R$ 139.9 million, an increase of
47.2% over 2003. In both periods, the increase is mainly due to
additional sales of R$ 16.4 million in 2H04 and R$ 42.0 million
in 2004 to pay-TV companies related to Sportv and Globonews
programming, production services and advertising.

Taxes, discounts and agency commissions totaled R$ 529.7 million
in 2H04, an increase of 24.0% over 2H03. In 2004, this item
totaled R$ 950.5 million, an increase of 26.6% over 2003. These
increases were in line with a growth of 23.4% and 26.7% in total
gross revenues in 2H04 and in 2004, respectively.

TV Globo's costs include engineering and broadcasting costs,
drama and show production, film and live event transmission
rights, payroll and other costs and overhead.

Administrative expenses are composed of payroll expenses, rental
and transportation expenses and general third-party services.

Selling expenses consist of sales volume bonuses, payroll
expenses, marketing and research expenses.

Costs and expenses totaled R$ 1,585.4 million in 2H04, an
increase of 15.5% (or R$ 212.5 million) over 2H03. The costs and
expenses pro-forma figures for 2004 amounted to R$ 2,801.9
million in 2004, an increase of 13.2% (or R$ 327.5 million) over
2003.

Selling expenses increased significantly in the period, as a
consequence of the higher advertising revenues during 2004.
Comparing the pro-forma figures for the full year, selling
expenses amounted to R$ 455.7 million in 2004, an increase of
29.3% over 2003, which reflects the increase of 26.4% in pro-
forma net revenue for the same period.

Pro-forma costs and expenses, excluding selling expenses,
amounted to R$ 1,320.6 million in 2H04, an increase of 11.9% (or
R$ 140.9 million) over 2H03 and in 2004 were R$ 2,346.2 million,
an increase of 10.6% (or R$ 224.3 million) over 2003. This
increase is explained, in part, by the following factors: (i) a
R$ 28.0 million increase related to the 2004 Olympic Games, an
event that occurs only once every four years, and was held in
the second half of 2004 and (ii) a R$ 27.4 million increase (R$
6.3 million in 2H04) in film rights that occurred mainly in the
first half of 2004, due to a review in 1H04 of the portion of
film expenses allocated each time a film is aired, according to
the level of advertising revenue obtained from each exhibition.

Excluding the abovementioned expense items, pro-forma costs and
administrative expenses amounted to R$ 1,241.5 million in 2H04,
an increase of 9.4% over 2H03 and R$ 2,222.8 million in 2004, an
increase of 8.2% over 2003, an increase lower than the inflation
rate (measured by the IGP-M index) of 12.4% in 2004.

Real estate rental totaled R$ 157.4 million in 2H04, an increase
of R$ 32.3 million over 2H03. In 2004, this expense totaled R$
362.7 million, an increase of R$ 197.1 million over 2003. The
higher real estate rental expenses were due to TV Globo's
improved results in 2004, as rental is a variable expense that
corresponds to 45% of TV Globo's annual profit before taxes,
adjusted under the terms of the rental agreement, and is
calculated and accrued on a cumulative monthly basis for each
period.

EBITDAR totaled R$ 507.3 million in 2H04, an increase of R$
182.5 million over 2H03. In the proforma figures for the full
year, EBITDAR totaled R$ 970.8 million in 2004, an increase of
R$ 461.4 million over the R$ 509.4 million total in 2003. As
also reported in 1H04, this substantial increase reflects not
only the growth of sales, resulting from the recovery of the
Brazilian advertising market, but also the ability of TV Globo
to control costs and expenses, maintaining cost increases below
the rate of inflation. Additionally, EBITDAR also reflects an
improvement of R$ 13.6 million and R$ 33.1 million in
Globo.com's EBITDA in 2H04 and 2004, respectively, when
comparing to the same periods of 2003.

Audience ratings for 2004 continued to be outstanding. TV
Globo's audience share in 2004 was 56%, or 2% higher than the
54% achieved in 2003. Specifically, with respect to the prime-
time period (Monday through Sunday, from 6:00 p.m. to midnight),
the average audience share increased to 63% in 2004, compared to
59% in 2003.

Several programs contributed to the growth in TV Globo's
audience share in 2004, mainly in the first half of 2004 and
particularly in the prime-time period, notably: "telenovelas",
news programs, variety shows (such as the reality show "Big
Brother Brasil") and the films broadcast on "Tela-Quente".

Pay-TV Distribution

Net Servicos: Cable TV Company (Proportionately consolidated
into Globopar) Net Servicos was proportionately consolidated
into Globopar at 46.29% as of the end of June 30, 2003; and
46.97% as of the end of each three-month period ending December
31, 2003; June 30, 2004 and December 31, 2004.

For further information on Net Servicos' results published both
in accordance with U.S. GAAP stated in US dollars and Brazilian
GAAP Corporate Law stated in Reais, please visit
www.netservicos.com.br.

Sky Brasil: Satellite TV Operator (not consolidated by Globopar
since September 30, 2002). For further information on Sky
Brasil's results, published in accordance with U.S. GAAP, please
visit www.skytv.com.br.

Pay-TV Programming
Globosat: Pay-TV Programming (100% consolidated into Globopar)

Globosat's net revenue for 2H04 increased R$ 35.0 million to R$
212.6 million, compared with R$ 177.6 million in 2H03. In 2004
net revenue increased R$ 68.4 million to R$ 388.3 million,
compared to R$ 319.9 million in 2003. This net revenue
improvement was mainly due to: (i) a R$ 40.0 million increase in
advertising revenues at Sportv, Multishow, GNT and Globonews
channels and also advertising specifically related to the 2004
Olympic Games and; (ii) an increase in programming revenues as a
result of the growth in subscriber base and overall price
increases.

Globosat's 2H04 EBITDA was R$ 77.4 million, R$ 23.9 million
higher than the R$ 53.5 million EBITDA in 2H03. Globosat's
EBITDA for 2004 reached R$ 136.1 million, or R$ 48.0 million
higher than the EBITDA for 2003. This significant increase was
mainly a reflection of a combination of the following: (i) the
revenue improvement explained above and (ii) a R$ 16.2 million
cost increase related to the production of the Olympic Games.

Telecine: Pay-TV Programming (Proportionately consolidated into
Globopar at 50%)

Net revenue for Telecine was R$ 90.6 million in 2H04, compared
to R$ 94.2 million in 2H03. This R$ 3.6 million decrease was
primarily due to the increase in COFINS tax rates in 2004.
Telecine's net revenue amounted to R$ 181.0 million in 2004, R$
22.9 million lower than the R$ 203.9 million for the prior year,
mainly due to the discontinuation of the two Telecine channels
in Portugal in 2003. Telecine's EBITDA was R$ 12.3 million in
2H04, R$ 1.6 million lower than the R$ 13.9 million in 2H03.
EBITDA for the full year totaled R$ 27.7 million, R$ 4.8 million
lower when compared to the R$ 32.5 million in 2003. The
reduction in operational costs and in the costs of film rights
was not enough to offset the reduction in net revenue related to
the termination of operations in Portugal.

Publishing and Printing

Editora Globo: Publishing (100% consolidated into Globopar)

Editora Globo's net revenue amounted to R$ 154.2 million in
2H04, slightly lower (R$ 1.4 million) than the R$ 155.6 million
in 2H03. From 2003 to 2004, net revenue increased R$ 4.6 million
to R$ 293.8 million from R$ 289.2 million, mainly due to the
Company's performance in 1H04, when net revenue increased R$ 6.0
million compared to 1H03, as a result of the recovery of the
magazine advertising market in 2004.

Editora Globo's 2H04 EBITDA totaled R$ 25.3 million,
representing a R$ 20.5 million improvement compared to 2H03. The
primary reasons behind this improvement were (i) a R$ 7.0
million reduction in sales expenses related to a reduction in
promotional campaigns, which were implemented to capture
subscribers but were discontinued in 2004 and; (ii) a R$ 15.0
million reduction in provisions for doubtful accounts. FY04
EBITDA reached R$ 29.3 million, an improvement of R$ 9.1 million
compared to FY03. In 2004, full year EBITDA performance was
weaker when compared to the second semester of 2004 due to the
following events that ocurred in the first semester of 2004: (i)
higher distribution costs, commissions and royalties related to
its operating activities and (ii) higher marketing expenses
incurred in order to increase sales.

Globo Cochrane: Printing (100% consolidated into Globopar)

Globo Cochrane's net revenue for 2H04 increased R$ 8.4 million
to R$ 56.2 million, compared to R$ 47.8 million in 2H03, mainly
resulting from (i) sales volume improvement and (ii) sales price
increase when comparing both periods. From 2003 to 2004 net
revenue increased R$ 21.5 million mainly due to the acquisition
of new clients in 2H03, now including larger accounts that
purchase both services and materials (paper included). Sales
volume increased 9.7% and 5.4% in 2004 and 2H04, respectively,
when compared to the same periods in the prior year.

Globo Cochrane's EBITDA for 2H04 increased R$ 2.6 million to R$
9.2 million, compared to 2H03 as a direct consequence of: (i)
the abovementioned acquisition of new clients; (ii) sales price
increase and (iii) sales volume increase, diluting fixed costs.
In 2004, EBITDA increased R$ 6.3 million compared to the
previous year also following the growth in revenues.

Sound Recording

On March 31, 2004, TV Globo acquired from Globopar and a third
party 97.968% of the capital of Sigla by using credits held
against Globopar and subsidiaries.

As of June 30, 2004, the following sound recording companies
were consolidated by Globopar: RGE,

Sigem, Sigla da Amaz“nia and Zende (see Note 1 to the Globopar
Financial Statements as of June 30, 2004).

Liquidity and Investments:

Cash and cash equivalents at Globopar holding and TV Globo, as
of December 31, 2004, were R$ 909.4 million. This compares with
a cash balance of R$ 611.3 million for the period ended June 30,
2004. The cash balance as of December 31, 2004 was higher
because of operational improvements and reflected the recovery
in the Brazilian advertising market. Moreover, TV Globo ended
2004 with R$ 186.1 million higher up-front sales compared to
2003. In addition, since the announcement of the restructuring,
Globopar has not been amortizing principal or interest on
unsecured and not-yet-restructured debt.

In 2004, net additions to property, plant and equipment of
Globopar Consolidated totaled R$ 44.8 million (of which R$ 580
thousand was Globopar holding's contribution), compared to a
disposal of R$ 28.3 million in 2003.

In 2004, TV Globo's purchases of property and equipment was R$
143.4 million, higher than the R$ 34.6 million in 2003. This
increase was mainly due to the following factors: (i)
approximately R$ 33.0 million of higher capital expenditures
made through barter transactions, not involving cash outlays
(such expenditures relate vehicle fleet, IT and broadcast
equipment); (ii) approximately R$ 10.0 million in capital
expenditures relating to the 2004 Olympic Games; (iii) R$ 6.1
million higher capital expenditures related to Globo.com, as
Globo.com was recognized in TV Globo's Financial Statements for
the full year in 2004 compared to half year in 2003 due to the
merger of Globo.com into TV Globo in July of 2003 and (iv)
capital expenditures made in 2004 were originally planned to be
significantly larger than those made in 2003. Furthermore, TV
Globo increased its capital expenditures beyond its original
budget as the purchase of certain imported equipment became
attractive due to the strengthening of the Real against the US
dollar.

Information Regarding Debt Obligations:

Since the majority of debt obligations are US dollar
denominated, the following tables present the Company's debt
obligations in US dollars. After the announcement of the
reevaluation of its capital structure on October 28, 2002,
Globopar and certain of its subsidiaries ceased to amortize
their unsecured debt liabilities. This non-payment constituted
an event of default under the debt agreement terms, resulting in
most of the debt being classified as current as at December 31,
2004, due to cross default provisions.

Debt Description by Type:

Direct debt is comprised of debt issued by Globopar or TV Globo.
Contingent debt is comprised of debt obligations of subsidiaries
or investees that have a formal guarantee from Globopar or TV
Globo. Non-guaranteed debt is comprised of Globopar's
subsidiary-level debt obligations that do not have a formal
guarantee from Globopar or TV Globo.

Direct Debt of Globopar plus TV Globo
(Principal and Accrued Interest)

As of December 31, 2004, the principal amount of Globopar's
direct debt was US$ 1,179.5 million, of which US$ 1,160.5
million is guaranteed by TV Globo. As of December 31, 2004, TV
Globo had direct debt in the principal amount of US$ 17.2
million, a decrease of US$ 10.5 million compared to June 30,
2004, due to amortizations of a loan made by TV Globo and the
appreciation of the Brazilian Real against the US dollar.

As of December 31, 2004, Globopar and TV Globo's direct debt
principal amount increased US$ 4.5 million to US$ 1,196.7
million compared to US$ 1,192.2 million as of June 30, 2004. The
higher principal amount of direct debt is due to the net result
of the following factors: (i) a decrease of US$ 10.5 million in
TV Globo's direct debt, as explained in the previous paragraph;
(ii) an increase of US$ 14.2 million due to the apreciation of
the Euro versus the US dollar that impacted the Eurodenominated
notes and (iii) an increase of US$ 0.8 million due to the
appreciation of the Brazilian Real against the US dollar, which
led to a higher amount in US dollars of the Real-denominated
debt when accounted for in US dollars, the amortization of
secured or restructured debt and the capitalization of interest
related to a revolving credit facility.

As of December 31, 2004, Globopar and TV Globo's accrued
interest on direct debt was US$ 328.9 million.

Contingent Debt of Globopar

The breakdown of the contingent debt follows the consolidation
criteria, with proportional consolidation for Net Servicos. On
December 31, 2004, the consolidated contingent principal amount
of outstanding debt decreased US$ 900 thousand to US$ 101.3
million compared to June 30, 2004, mainly due to: (i) US$ 2.5
million amortization of Globosat's remaining debt; (ii) US$ 3.5
million amortization of secured or restructured debt and (iii)
an increase of US$ 5.1 million due to appreciation of the
Brazilian Real against the US dollar in 2004 that impacted the
Real-denominated debt when accounted for in US dollars.

On December 31, 2004, the outstanding principal amount of the
non-consolidated contingent debt decreased US$ 139.6 million to
US$ 8.8 million compared to June 30, 2004 mainly because
Globopar was released, on October 8, 2004, from certain Sky
Brasil obligations under its transponder agreement with
PanAmSat.

Furthermore, in connection with the Sky and DirectTV Merger,
News Corp has agreed to indemnify Globopar against any
obligations related to guarantees on the US$ 8.8 million DTH
Techco Partners debt.

Direct and Consolidated Contingent Debt of Globopar and TV Globo
(Direct Debt plus Consolidated Contingent Debt - Principal and
Accrued Interest)

The principal amount of direct debt and consolidated contingent
debt of Globopar and TV Globo was US$ 1,298.0 million as of
December 31, 2004.

Consolidated Non-Guaranteed Debt of Globopar
(Principal and Accrued Interest)

The Company also has US$ 311.9 million of consolidated non-
guaranteed debt principal, of which US$ 164.7 million
corresponds to the proportionally-consolidated amount raised by
Net Servicos. US$ 115.9 million relates to Distel's debt, US$
18.6 million represents UGB debentures debt (this debt has a put
option granted to bondholders by Globopar. See Note 12,
"Commitments and Contingencies" to the Globopar Financial
Statements) and, US$ 7.3 million and US$ 5.4 million relates to
Editora Globo's and Globo Cochrane's non-contingent debt,
respectively. The principal value of the consolidated portion of
the non-guaranteed debt increased US$ 29.9 million compared to
U$ 282.0 million in June 30, 2004, mainly related to the
appreciation of the Brazilian Real against the US dollar in 2004
that impacted the Real-denominated debt when accounted for in US
dollars.

Globopar Consolidated and TV Globo Total Debt principal and
interest (direct + consolidated contingent + consolidated non-
guaranteed debt) increased US$ 192.8 million to US$ 2,154.4
million as of December 31, 2004 from US$ 1,961.6 million as of
June 30, 2004. This increase is explained above with respect to
changes in non-guaranteed debt.

About Globopar

Globopar is a Brazilian holding Company owned by the Marinho
family with interests in cable and satellite television, pay
television programming, magazine publishing and printing.

Globopar Consolidated: The consolidated results include: (i)
full financial statement contribution of all companies
controlled by Globopar; (ii) proportional contribution of
subsidiaries where Globopar has shared ownership and (iii)
contribution accounted for under the equity method for
subsidiaries not controlled by Globopar.

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

CONTACT: Mr. Stefan Alexander
         Ms. Marta Meirelles
         Globo Comunicacoes e Participacoes S. A.
         Phone: 55 21 2540-4444
         E-mail: IR@globopar.com.br
         Web Site: http://www.globopar.com.br

         Ms. Lidia Borus
         Financial Investor Relations Brasil
         Phone: 55 11 3897-6404
         E-mail: lidia.borus@firb.com


ROYAL AHOLD: Reports EUR443Mln Full Year Net Loss in 2004
---------------------------------------------------------
HIGHLIGHTS:

- 2004: A year of transition
- Divestment program nearing completion
- Retail arena structure implemented
- U.S. Foodservice's performance improved
- Net debt significantly reduced
- Settlement reached with SEC
- Corporate governance increasingly robust and transparent

FINANCIAL HIGHLIGHTS Q4 2004:

- Net income Q4 2004 of EUR 96 million (Q4 2003: EUR 12 million)
- Operating income Q4 2004 of EUR 207 million (Q4 2003: EUR 61
million)
- Net sales Q4 2004 of EUR 12.4 billion, a decrease of 3.0%
compared to Q4 2003. Net sales growth was 9.0% excluding
currency impact and the impact of divestments, but including
impact of the extra week in 2004
- Net cash flow from operating activities Q4 2004 of EUR 745
million (Q4 2003: EUR 1,060 million) Financial highlights Full
Year 2004:
- Operating income full year 2004 of EUR 195 million (2003: EUR
718 million) mainly impacted by the EUR 428 million exceptional
loss related to the divestment of Bompreco in Q1 2004
- Net loss full year 2004 of EUR 443 million (2003: net loss EUR
1 million) impacted by total exceptional items of EUR 582
million (2003: EUR 136 million)
- Net debt declined by EUR 1.5 billion in 2004

Our key priorities for 2005:

- Successful execution of our Road to Recovery strategy
including completion of our divestment program
- Implementation of our retail business model to drive sales
volume throughout Ahold
- Further improve operational performance U.S. Foodservice
- Formulation of our 2006+ strategy following the Road to
Recovery

Ahold's Road to Recovery strategy is bearing fruit. During 2004
and especially in Q4 2004, we have made good progress. As we
anticipated, this progress did not result in performance
improvement in 2004, but we will in due course reap the benefits
of our efforts. We are continuing the process of building a
strong and healthy financial foundation. We are generating the
resources to be able to invest in the growth of our stores,
distribution centers, systems and people to achieve our strategy
for our customers, associates and shareholders.

We are moving closer to our customers, in order to better
differentiate our offering and by investing in our pricing. We
believe customer focus and operational excellence are crucial if
we are to achieve long-term success in an increasingly
competitive sector.

We are working hard to reestablish U.S. Foodservice as a viable,
reliable, ethical Company that delivers value to Ahold. The new
management team has made great strides forward and we are moving
steadily in the right direction.

In addition, we have put in place a stronger and more
transparent corporate governance structure. We are simplifying
our organizational structure to support group-wide execution of
our retail model. We are enhancing the clarity of accountability
and standards, improving internal controls and establishing a
clear and compelling culture driven by common, shared values.
Following our full cooperation and the remedial actions we have
taken, we have reached a final settlement with the U.S.
Securities and Exchange Commission with no penalty being
imposed.

Our key priorities for 2005:

- Successful execution of our Road to Recovery - We have made
huge strides forward in our Road to Recovery, although we still
have significant steps to take in 2005. We are focused on
working towards meeting applicable criteria for an investment
grade rating profile. We are committed to our target of minimum
gross proceeds of Euro 2.5 billion from the divestment of our
non-core and under-performing assets. We are working towards
bringing this program to a successful conclusion in the
interests of our stakeholders. The sale of our Spanish retail
activities and BI-LO/Bruno's (closed in January 2005) were
significant steps in this process.

- Implementation of our retail business model to drive sales
volume throughout Ahold - We continue to roll out our retail
model across the arenas. Our retail model drives the process of
reducing cost to reinvest in customer value and price. Based
upon the successful completion of the harmonization initiatives
and our divestment program by the end of 2005, our operating
targets for our food retail business for full year 2006 are 5%
net sales growth, 5% EBITA margin and 14% return on net assets.

- Further improve operational performance U.S. Foodservice - We
will continue to aim at restoring profitability and cash flow by
improving the organization, pursuing further procurement
enhancements, striving for operational excellence and enhancing
our systems.

- Formulation of our strategy 2006+ following the Road to
Recovery - When we have reached the end of our Road to Recovery,
we will have defined our strategy moving forward. The group
strategy will describe how we will win in the competitive
environments that characterize our core market places. Our
strategy will profile our differentiating capabilities and
define how we will develop further as a group.

Success is a journey, not a destination:

We have come a long way since 2003, when we were in crisis. 2004
was our year of transition. 2005 is turning into a year of
execution, a year in which we are delivering on our promise and
concentrating on implementing our new way of working based on
the solid structures created in 2004. I appreciate the great
energy of our associates as we complete the execution of our
Road to Recovery strategy.

We are very focused on the business, showing strong leadership
as we drive this high pace of change, and committed to a
credible, transparent and open interactive dialogue with our
internal and external stakeholders. We are sustaining our
commitment to our customers along our Road to Recovery.

HIGHLIGHTS IN Q4

Net income

- Consolidated Q4 2004 (13 weeks) net sales amounted to EUR 12.4
billion, a decline of 3.0% compared to Q4 2003 (12 weeks).
- Net sales were negatively impacted by lower exchange rates and
divestments; net sales growth excluding currency impact and the
impact of divestments was 9.0%. Q4 2004 net sales were
positively affected by the extra week.
- Operating income was higher due to an improved gross margin
and lower operating expenses. Q4 2004 operating expenses
included reduced external advisory costs whereas Q4 2003 was
significantly impacted by a goodwill impairment charge for G.
Barbosa of EUR 42 million.
- Net financial expense was significantly reduced due to lower
costs of borrowing, lower gross debt and higher cash balances
invested.
- In Q4 2004 income taxes were significantly impacted by
adjustments following finalization of tax returns relating to
prior years as well as changes to contingency reserves. This
positive effect was partly offset by a negative impact of non-
deductible losses on divestments. For the impact on the
effective tax rate in Q4 2004.
- Income from joint ventures and equity investees increased by
EUR 25 million due to higher share in income from ICA and JMR.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- In Q4 2004 the exceptional items amounted to EUR 53 million
related to the divestments of Disco and our Spanish retail
activities, whereas the exceptional items in Q4 2003 were
related
to the divestments of the activities in Indonesia and Malaysia.
- In Q4 2004 we recorded goodwill amortization amounting to EUR
35 million mainly related to U.S. Foodservice. In Q4 2003 we
recorded, in addition to goodwill amortization, the
abovementioned goodwill impairment charge for G. Barbosa.

Net financial expense

- The decline in net financial expense was primarily
attributable to the net impact of lower costs of borrowing and
significantly lower gross debt mainly as a result of the early
repayment of the EUR 920 million convertible subordinated loan
in Q2 2004 and the replacement of the March 2003 Credit Facility
with the December 2003 Credit Facility with more favorable
terms.
- Net interest expense was favorably impacted by higher average
cash balances mainly as a consequence of divestments.

Share in income from joint ventures and equity investees

- In Q4 2004 our share in income from ICA was higher compared to
Q4 2003.
- Income from JMR was substantially higher mainly due to cost
reductions.

Net debt

- Net debt decreased from EUR 7.5 billion at the end of Q3 2004
to EUR 6.3 billion at the end of Q4 2004, predominantly as a
result of cash inflows from the divestment of our Spanish retail
operations and the favorable impact of the USD/EUR exchange rate
development, which were partially offset by cash outflows
related to the completion of the ICA put transaction in Q4 2004.
- The December 2003 Credit Facility remained undrawn except for
letters of credit of USD 581 million at the end of Q4 2004.
- Net debt of previous quarters has been adjusted for the on
balance treatment of a securitization program at U.S.
Foodservice (USD 300 million).

Net cash flow

- Net cash flow from operating activities decreased mainly due
to lower deductions in net working capital, partially offset by
improved operational performance.
- Net cash flow from investing activities increased due to a
higher cash generation from the divestments, which was partly
offset by the net cash impact of the ICA put transaction.
- Net cash flow from financing activities was lower due to the
rights issue of EUR 2.9 billion and the repayment of the March
2003 Credit Facility in Q4 2003.
- For Q4 2004 the net change in cash and cash equivalents was
lower mainly due to the proceeds of the rights issue in Q4 2003.

Highlights full year (FY) 2004

- FY 2004 (53 weeks) net sales amounted to EUR 52.0 billion, a
decline of 7.3% compared to FY 2003 (52 weeks).
- FY 2004 net sales growth excluding currency impact and the
impact of divestments was 3.3%.
- Operating income negatively impacted by exceptional losses
related to divestments and the resale of 10% of the shares in
ICA. Operating income was positively impacted by a lower
operating loss at U.S. Foodservice and lower costs for external
advisors.
- Net financial expense was significantly lower due to the
impact of lower costs of borrowing, substantially lower gross
debt mainly as a result of the early redemption of the EUR 920
million convertible subordinated loan, higher average cash
balances and the favorable impact of the lower EUR/USD exchange
rate.
- Income tax expenses in FY 2004 significantly increased mainly
due to non-deductible losses on divestments, impairments,
increase of valuation allowances related to loss carry forwards
and a lower favorable impact of interCompany financing. For the
impact on the effective tax rate in FY 2004 see Table F on page
25.
- Our share in income from our unconsolidated joint ventures and
equity investees decreased, primarily because in 2003 income at
ICA included a gain related to the sale and lease back of
several distribution centers.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- In FY 2004 we recorded EUR 582 million of exceptional losses
related to divestments and the resale of 10% of the shares in
ICA. A substantial portion of these exceptional losses did not
impact equity or cash. For further details on divestments and
the resale of the ICA shares, see `Notes to the Consolidated
Interim Statements' on pages 17-19.
- Goodwill impairment in FY 2003 included an impairment charge
for G. Barbosa of EUR 42 million.

Net cash flow

- Net cash flow from operating activities decreased mainly due
to unfavorable changes in net working capital, partially offset
by improved operational performance.
- Net cash flow from investing activities increased due to a
higher cash generation from the divestments, which was partly
offset by the net cash impact of the ICA put transaction.
- Net cash flow from financing activities was significantly
lower due to the early repayment of the EUR 920 million
convertible subordinated loan in Q2 2004 compared to the impact
of the rights issue of EUR 2.9 billion in 2003, which was
partially offset by lower debt repayments in 2004.
- For FY 2004 the net change in cash and cash equivalents was
lower mainly due to the proceeds of the rights issue in 2003.

US GAAP

US GAAP information is not included in this press release. This
will be included in our annual report that we plan to publish on
April 14, 2005. We expect that our net result under US GAAP for
2004 will be considerably more favorable than under Dutch GAAP
mainly as a consequence of differences in the accounting for
divestments and the ICA put transaction.

Summary per segment (Q4)

Ahold Group

Net sales per segment

- Stop & Shop / Giant-Landover Arena net sales increased by
1.5%. Net sales in U.S. dollars would have increased by 2.2%
compared to the adjusted Q4 2003. Net sales growth was affected
by competitive pressure and integration issues that were
resolved by the end of the fourth quarter.
- Effective pricing and promotions resulted in net sales growth
of 5.4% in the Giant-Carlisle / Tops Arena. Net sales in U.S.
dollars would have increased by 6.3% compared to the adjusted Q4
2003.
- Albert Heijn Arena showed net sales growth in a highly
competitive market. Net sales increased by 9.2%; net sales would
have increased by 0.3% compared to the adjusted Q4 2003. The
successful ongoing price-repositioning led to a higher market
share for Albert Heijn.
- Net sales growth excluding currency impact of the Central
Europe Arena was 5.6%.
- Net sales in Other Europe were mainly impacted by the sale of
our Spanish operations, completed on December 2, 2004. Schuitema
showed a net sales increase mainly due to a successful
promotional campaign.
- The divestments of Bompreco in March 2004 and Disco in
November 2004 were the main contributors to the lower net sales
in Rest of World.
- Net sales at U.S. Foodservice decreased by 1.1%. Net sales
would have increased by 0.8% compared to the adjusted Q4 2003.

Operating income per segment

- Our Stop & Shop / Giant-Landover Arena recorded lower
operating income due to lower identical sales and the
abovementioned integration issues. Lower real estate gains,
integration cost and higher long-lived asset impairment charges
also contributed to the lower operating income.
- Positive identical sales growth due to strong marketing and
loyalty programs was the main contributor to the higher
operating income at the Giant-Carlisle / Tops Arena.
- On January 31, 2005 we completed the sale of BI-LO and Bruno's
to an affiliate of Lone Star Funds.
- Operating income in Q4 2004 at our Albert Heijn Arena was
lower mainly due to increases in pensions, retirement and other
benefits that were skewed towards the fourth quarter.
- Operating income from our Central Europe Arena was negatively
impacted by deteriorating results of the large Polish
hypermarkets and long-lived asset impairments.
- Other Europe showed higher operating income, mainly due to the
gain on the sale of our operations in Spain.
- In Q4 2004 we recorded a higher operating loss in Rest of
World mainly due to the divestment of Disco.
- U.S. Foodservice's operating loss improved, mainly due to
higher gross profit resulting from higher net sales, an enhanced
sales mix and increased selling margins.
- In Q4 2004 we significantly reduced external advisory costs at
the Group Support Office. In Q4 2003 we recorded additional
costs related to an increase in the loss reserve for self-
insurance.

Business highlights

- 2004 was a year of transition. Management focus was required
for the integration of Stop & Shop and Giant-Landover and the
U.S. retail support organization.
- In 2004 our Stop & Shop / Giant-Landover Arena experienced
continued competitive pressure and increased promotional
activity.
- Integration savings are expected in 2005 and beyond.
- Most supply chain integration and transitional difficulties
were resolved by the end of the fourth quarter.
- The market share in 2004 of the Stop & Shop divisions improved
by 0.1% to 27.1%, while the market share for the Giant-Landover
divisions declined by 1.6% to 34.4%.

Net sales

- Q4 2004 net sales increased by 10.8% versus Q4 2003. Net sales
would have increased by 2.2% compared to the adjusted Q4 2003.
- In Q4 2004 identical sales and comparable sales for the Stop &
Shop / Giant-Landover Arena decreased by 2.3% and 1.7%
respectively, due to competitive pressure and integration issues
that were resolved by the end of the fourth quarter. Identical
customer count decreased, while the average transaction size
improved slightly.
- FY 2004 net sales increased by 3.6% compared to FY 2003; net
sales would have increased by 1.6% compared to the adjusted FY
2003.
- During 2004 we opened 41 new and replacement stores.
- FY 2004 identical sales of the Stop & Shop divisions remained
stable, while identical sales of the Giant-Landover divisions
declined by 5.2%. Comparable sales increased by 0.8% for the
Stop & Shop divisions and declined by 4.6% for the Giant-
Landover divisions.
- Our internet retail Company Peapod achieved 31.2% net sales
growth in FY 2004.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- In Q4 2004 our gross margin remained stable compared to Q4
2003.
- Operating expenses in Q4 2004 increased as a percentage of net
sales. Significant resources allocated to the integration
activities impacted our ability to focus on the core business.
- Q4 2004 EBITA* included integration expenses of Stop & Shop,
Giant-Landover and the U.S. retail support functions of USD 8
million, long-lived asset impairment charges of USD 8 million
(Q4 2003: USD 4 million) and gains on the sale of real estate of
USD 3 million (Q4 2003: USD 22 million).
- Q4 2004 EBITA* was lower for both the aggregated Stop & Shop
divisions as well as Giant-Landover divisions.
- The inclusion of U.S. retail support functions (previously in
segment Other US) into this arena, resulted in exceptional gains
of USD 16 million in Q4 2003 related to the sale of the Golden
Gallon brand.
- FY 2004 results were negatively impacted by competitive
pressure from new stores, increased promotional activity,
integration costs of USD 54 million, long-lived asset
impairments of USD 48 million (USD 11 million in 2003) and
additional expenses including an increase in the loss reserve
for self-insurance of USD 45 million.

Giant-Carlisle / Tops Arena

Business highlights

- Effective pricing and promotional activities, combined with
tight cost controls, were key drivers for strong performance in
both net sales and EBITA* in 2004.
- We have successfully reformatted one of our Tops stores into
our new Martin's format and increased its net sales
significantly.
- Our square footage increase exceeded other conventional
supermarkets in the market in which our Giant-Carlisle / Tops
Arena operates.
- As part of our asset rationalization program in Q4 2004, we
announced our intent to close six Tops stores, which
subsequently occurred in 2005.
- Market share in 2004 for Giant-Carlisle improved by 1.3% to
29.6% and for Tops by 0.3% to 27.7%.

Net sales

- Q4 2004 net sales increased by 15.2% compared to Q4 2003; net
sales would have increased by 6.3% compared to the adjusted Q4
2003.
- Successful customer loyalty-card marketing, effective pricing
and promotional activity had a favorable effect on net sales,
especially during Q4 2004 holidays.
- In Q4 2004 identical sales for the Giant-Carlisle / Tops Arena
increased by 3.7%, while comparable sales increased by 4.4 %.
- FY 2004 net sales increased by 5.9% compared to FY 2003; net
sales would have increased by 3.8% compared to the adjusted FY
2003.
- FY 2004 identical sales of Giant-Carlisle and Tops increased
by 4.2% and 0.8% respectively, while comparable sales increased
by 5.4% and 0.4% respectively.
- FY 2004 net sales increased primarily due to intensive
customer relationship marketing at Giant-Carlisle and effective
pricing and promotional activity at Tops.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- In Q4 2004 our gross margin improved as a result of effective
management of promotional activities.
- In Q4 2004 EBITA* increased as a result of strong net sales
growth, gross margin improvement and lower long-lived asset
impairment charges of USD 6 million (Q4 2003: USD 22 million),
offset partially by costs related to the announced closure of
six Tops stores (USD 7 million).
- FY 2004 EBITA* improved as a result of strong net sales
growth, improved gross margins, and synergy-savings achieved.
This was partially offset by higher costs related to the loss
reserve for self insurance(USD 11 million).

BI-LO / Bruno's Arena

Business highlights

- During fiscal 2004, both BI-LO and Bruno's were impacted by
increases in competitive square footage, the effect of store
closings earlier in the year, and management's focus being
diverted by the announced sale of the two companies.
- Additionally, Bruno's results were adversely impacted by
Hurricane Ivan in certain areas of its business which affected
both the stores and the overall economy.
- On January 31, 2005 the sale of BI-LO and Bruno's to an
affiliate of Lone Star Funds was completed.
- The market share of BI-LO in 2004 decreased by 0.6% to 22.2%
and Bruno's remained stable at 27.7%

Net sales

- Q4 2004 net sales in U.S. dollars increased by 2.7% versus Q4
2003; net sales would have decreased by 5.1% compared to the
adjusted Q4 2003.
- The identical sales decrease of 1.5% in the fourth quarter was
a result of increased competitive promotional activity as well
as increased competitive square footage.
- In addition to the reasons mentioned above, net sales for the
year decreased 9.4% over the prior year as a result of store
closings in the beginning of 2004 and the divestment of Golden
Gallon in October 2003. Net sales would have decreased by 11.0%
compared to the adjusted FY 2003.
- FY 2004 identical sales decreased by 3.4%.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- EBITA* increased by USD 6 million over Q4 2003 mainly due to
adjustments in purchase accounting related to the acquisition of
Bruno's and higher gross profit partially offset by long-lived
asset impairment charges.
- The exceptional items in Q4 2003 were related to the sale of
Golden Gallon.
- FY 2004 EBITA* decreased by USD 44 million to USD 25 million
due to lower net sales as well as lower leverage of fixed costs.

Albert Heijn Arena

Business highlights

- Albert Heijn's continuing repositioning strategy resulted in
more customers and higher volumes, accumulating during the last
weeks of 2004, despite aggressive expansion of hard discounters,
intensified price competition and pressure on margins.
- Market research showed that customers value Albert Heijn
better on price, quality and service.
- As a result of cost reductions and efficiency improvements,
especially in the retail supply chain, Albert Heijn was able to
reduce prices while improving profitability.
- Albert Heijn strengthened its position as market leader in a
deflationary market, resulting in market share growth in 2004 of
0.2% to 26.9%.

Net sales

- Net sales increased by 9.2% in Q4 2004; net sales would have
increased by 0.3% compared to the adjusted Q4 2003.
- Our Albert Heijn Arena experienced a successful Christmas
season. A record number of customers shopped at Albert Heijn
stores in the week preceding Christmas, leading to higher net
sales.
- In Q4 2004, Albert Heijn's identical sales growth increased to
0.6%, mainly due to higher volumes, partly offset by lower
prices.
- The repositioning of Albert Heijn's private label resulted in
positive net sales growth of private label products and
increased the share of private label of total net sales.
- FY 2004 net sales increased by 3.0%; net sales would have
increased by 0.9% compared to the adjusted FY 2003.
- FY 2004 identical sales increased by 0.9%.
- Our internet retail Company Albert achieved 21.8% net sales
growth in FY 2004; net sales would have increased by 20.0%
compared to the adjusted FY 2003.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- Albert Heijn recorded a slightly unfavorable gross margin
which was partly compensated by lower logistic and distribution
expenses (L&D).
- The successful cost reduction program at Albert Heijn is
focusing on lowering L&D expenses, wages, other store expenses,
depreciation/rent and administrative expenses.
- Operating expenses in FY 2004 were negatively affected by
expenses related to the restructuring of ETOS, which amounted to
EUR 2 million.
- FY 2004 EBITA* was EUR 12 million higher for our Albert Heijn
Arena, mainly due to cost reductions at Albert Heijn, which
offset the impact of the lower prices on the gross profit as a
percentage of net sales. Further, FY 2004 EBITA* was negatively
impacted by substantially higher pension and early-retirement
costs (approximately EUR 30 million higher) mainly due to the
introduction of new pension and early retirement plans.

Central Europe Arena

Business highlights

- Ahold announced in Q4 2004 it had reached agreement on the
divestment of its 13 large hypermarkets in Poland to Carrefour.
In February 2005, the transfer of 12 large hypermarkets was
finished. The last one will be divested later in 2005.
- To compete successfully with the increased number of
discounters, our Central Europe Arena introduced in 2004 a more
aggressive pricing policy and rationalized its assortment.
Additionally the number of private label products was expanded.
As a consequence of these initiatives the identical sales growth
for the full year was favorable and the market share was stable.
- In 2004 the centralization of several functions within the
Central Europe Arena was completed, such as information
technology support, format development, category management and
real estate.

Net sales

- In Q4 2004 our Central Europe Arena showed a net sales growth
excluding currency impact of 5.6%. This growth was primarily due
to store openings.
- The announced divestment of our large hypermarkets in Poland,
had an unfavorable effect on the identical sales of the
Hypernova banner in Poland. The identical sales growth of our
compact hypermarkets and our supermarkets was favorable, mainly
due to a higher number of customers.
- For FY 2004 net sales increased 6.2% excluding currency
impact.

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- EBITA* for our Central Europe Arena was negatively impacted in
Q4 2004 by additional impairments of long-lived assets (EUR 8
million) and deteriorated results of the large hypermarkets,
partly offset by real estate gains (EUR 8 million). Excluding
these effects EBITA* was in line with Q4 2003.
- FY 2004 EBITA* included long-lived asset impairment charges of
EUR 30 million (2003: EUR 4 million), partly offset by real
estate gains of EUR 7 million (2003: EUR 13 million). Further,
in FY 2003 a rent termination fee of EUR 20 million relating to
the divestment of two Polish hypermarkets was recorded. Apart
from these effects EBITA* improved primarily as a consequence of
a higher gross margin and higher net sales.

U.S. Foodservice

Business highlights

- In 2004 we focused on (1) improving internal controls and
corporate governance (2) building the organization and systems
infrastructure and (3) restoring profitability and cash flow.
- During the year, we continued the enhancement of our internal
control environment and corporate governance structure which
will serve as a foundation for our business initiatives going
forward.
- In Q4 2004 we continued to make progress on the implementation
of our US FAST systems infrastructure plan. We are on track to
complete the next phase of this project in 2005.
- In 2004 we substantially completed the renegotiation of
contracts with our top vendors. The resulting contractual
arrangements improve clarity and competitiveness, provide for
consistency of terms and conditions and create business terms
that better support our long-term business objectives.
- In 2004 we implemented significant changes to improve
operational performance and internal and external benchmarking.

Net sales

- Net sales in Q4 2004 were positively impacted by the extra
week and food price inflation. Net sales would have increased by
0.8% compared to the adjusted Q4 2003. Further, our national
account customer rationalization program had a negative impact
on net sales (approximately 3%).
- Net sales in FY 2004 were positively impacted by the extra
week and food price inflation. Net sales would have increased by
3.9% compared to the adjusted FY 2003. Further, our national
account customer rationalization program had a negative impact
on net sales (approximately 0.8%).

EBITA* (operating income (loss) before impairment and
amortization of goodwill and exceptional items)

- EBITA* in Q4 2004 increased mainly due to an improved gross
margin resulting from improved supplier terms and more effective
selling strategies to our street customers.
- EBITA* in Q4 2004 also benefited from a strong focus on
operating expenses, although rising fuel costs had an offsetting
effect.
- EBITA* in FY 2004 increased mainly due to a higher gross
profit resulting from higher net sales, an enhanced sales mix
and increased selling margins. EBITA* further benefited from a
strong focus on controlling operating expenses.

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

CONTACT: Royal Ahold S.A.
         Albert Heijnweg 1, Zaandam
         P.O. Box 3050, 1500 HB Zaandam
         The Netherlands
         Phone: +31 75 659 5720


TELEMAR: Directors to Decide on Dividend Distribution
-----------------------------------------------------
The Board of Directors of TELE NORTE LESTE PARTICIPACOES S.A.
(Telemar) calls a General Shareholders' Meeting for the
Company's shareholders to be held on April 12, 2005, at 3:00 pm,
at the Company's headquarters, located in the city of Rio de
Janeiro, RJ, at Rua Humberto de Campos, 425, Leblon, 8th floor,
for the purpose of deliberating on the following matters:

(i) Analysis, discussion and approval of the Financial
Statements, Management Report and Report of Independent Auditors
of the Company for the fiscal year ending December 31, 2004;

(ii) Approval of management's proposal for the allocation of net
income and the distribution of dividends, taking into account
the interest on capital declared during the fiscal year ending
December 31, 2004

(iii) Approval of the annual capital expenditure budget for the
2005 fiscal year;

(iii) Election of the members of the Company's fiscal committee
and their respective alternates;

(iv) Establishment of fiscal year 2005 compensation for the
Company's management and members of the Company's Fiscal
Committee.

GENERAL INFORMATION:

1. The documentation related to the agenda of the General
Shareholders' Meeting is available at the Company's
headquarters.

2. All powers of attorney to vote at the General Shareholders'
Meeting must be delivered to the attention of the Company's
legal department located in the city of Rio de Janeiro, RJ, at
Rua Humberto de Campos, 425, 6th floor, Leblon, by April 08,
2005, 6:00pm.

3. Shareholders whose shares are registered with a custodial
agent who wish to vote their shares at the General Shareholders'
Meeting, must present a statement issued as of April 08, 2005 by
the custodial agent, indicating the amount of shares of the
Company held by such shareholders as of said date.

CONTACT: Tele Norte Leste Participacoes S.A.
         Rua Humberto de campos
         425-8 Andar Leblon
         Rio de Janeiro, RJ 22430-190
         Brazil
         Phone: +55 21 3131 1210
         Web site: http://www.telemar.com.br


UNIBANCO: Names Osias Santana de Brito as New IR Head
-----------------------------------------------------
Unibanco announces that, in the Meeting of the Board of
Directors, held on March 23rd, 2005, Mr. Osias Santana de Brito,
Executive Officer of the Company, was appointed Unibanco's
Investor Relations Officer. The current Investor Relations
Deputy Officer, Mr. Marcelo Ariel Rosenhek, remains in his
position.

About Unibanco

Uniao de Bancos Brasileiros S.A. (Unibanco), a large private
sector bank headquartered in Brazil, provides a wide range of
financial products and services to a diversified individual and
corporate customer base. Unibanco's activities are comprised of
retail, wholesale, insurance and wealth management.

CONTACT: Uniao de Bancos Brasileiros S.A. - (Unibanco)
         Unibanco Holdings
         Avenida Eusebio Matoso 891
         Sao Paulo, 05423-901
         Brazil
         Phone: 55-3789-8000
         Web site: http://www.unibanco.com.br


* BRAZIL: IMF Praises Macroeconomic Stabilization Program
---------------------------------------------------------
Mr. Rodrigo de Rato, Managing Director of the International
Monetary Fund (IMF), made the following statement Monday:

"On March 21 the Executive Board of the IMF completed the tenth
and final review of Brazil's performance under the SDR27.4
billion (about US$41.8 billion) stand-by arrangement, which was
originally approved in September 2002 and is scheduled to expire
at end-March 2005. The Brazilian authorities and Fund staff and
management have jointly considered the future form of relations
between Brazil and the IMF. In light of the sound macroeconomic
and institutional framework in place, the government's
commitment to pursuing further reforms, and a balance of
payments position much stronger than earlier anticipated, the
Brazilian authorities have decided not to request Fund support
under a successor arrangement. The IMF staff and management
fully support the authorities' decision.

"The decision by the authorities reflects the impressive
results, generally ahead of expectations, of Brazil's
macroeconomic stabilization and reform policies that have been
supported by the current arrangement. Underpinned by these
policies and a favorable global environment, economic activity
has rebounded strongly in 2004, led by robust growth in private
consumption and a sharp recovery in investment, bringing real
GDP growth to over 5 percent-its highest level since 1994.
External performance has been remarkable, with the trade and
current account balances close to record surpluses at present,
and net international reserves rising to more comfortable
levels. Moreover, inflation is being reduced steadily under the
inflation targeting framework. A consistently strong fiscal
performance has contributed to reducing the level and improving
the structure of public debt and has greatly assisted in
preserving macroeconomic stability, while private sector efforts
to strengthen balance sheets have led to a marked decline in
external indebtedness. These developments have significantly
lessened economic vulnerabilities and bolstered confidence in
the economy. The authorities are committed to continuing with
their reform agenda, and further steps to strengthen public
finances, through reforms on the social security system, have
just been announced and are welcomed by IMF staff and
management.

"The Brazilian authorities and the staff and management of the
IMF look forward to continuing with the close and cooperative
policy dialogue between Brazil and the IMF through the usual
channels of surveillance and post-program monitoring."

CONTACT: IMF - External Relations Department
         700 19th Street, NW
         Washington, D.C. 20431
         USA

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

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



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

GRUPO MEXICO: U.S., Mexican Metals Unions Rally for Justice
-----------------------------------------------------------
A group of over one hundred U.S. and Mexican trade unionists and
their supporters held a rally Monday at Grupo Mexico (BMV:
GMEXICOB) headquarters in Mexico City demanding that the Company
respect workers and their unions. The rally was jointly
organized by Mexico's Miners and Metalworkers Union (STMMRM) and
United Steelworkers of America (USWA). It included a delegation
of USWA elected officers and staff.

Rally participants waved signs, held banners and chanted slogans
calling for just treatment of workers at all of Grupo Mexico's
operations. Grupo Mexico, the world's third largest copper
producer, has operations in Mexico, the U.S. and Peru.

Inside the Company's headquarters, a special meeting of Grupo
Mexico subsidiary Southern Peru Copper Corporation (SPCC) (NYSE,
LSE: PCU) stockholders was being held to finalize the transfer
of Minero Mexico, Grupo Mexico's Mexican mining assets, to SPCC.

"Grupo Mexico has claimed this transfer is in the best interests
of stockholders," said STMMRM President Napoleon Gomez Urrutia.
"However, it should not result in shutdowns or job reductions at
any of its operations. STMMRM, together with our union brothers
and sisters in the US and Peru, will not allow Grupo Mexico to
forget the interests of workers."

Grupo Mexico has faced multiple strikes at its operations in
Peru and Mexico in recent years. The Company is currently in
negotiations with USWA and other unions representing about 750
workers at Grupo Mexico owned Asarco operations in Arizona and
Texas. Contracts covering these workers expired on July 1, 2004,
and contracts covering workers at Asarco' Ray Mine expire July
1, 2005.

"Grupo Mexico's Asarco is not treating our members and retirees
with justice or dignity," said USWA sub-director for the U.S.
Southwest Manuel Armenta, who participated in the rally.
"Despite high copper prices, Asarco is demanding harsh
concessions in nearly every area."

"Asarco has broken the law with its illegal, mean-spirited
approach to bargaining. The United States National Labor
Relations Board recently issued a complaint against Asarco for
its refusal to provide information critical to bargaining,"
stated Armenta.

"And Asarco broke its promise to retirees by unilaterally
cutting their healthcare benefits, benefits which Asarco had
earlier committed to provide," added Armenta.

The rally builds upon recent efforts by STMMRM and USWA to
solidify their ties.

USWA sent a delegation of members employed by Asarco in Arizona
to Grupo Mexico's smelter in Nacozari in October 2004 as a show
of solidarity with the striking STMMRM members there.

Last month, at a meeting between Gomez Urrutia and USWA
President Leo Gerard in Phoenix, Arizona, the two unions
formally committed to joint actions when in disputes with common
employers.

USWA and STMMRM have also recently been involved in efforts to
form a coalition of metals and mining industry unions throughout
the Western Hemisphere. The unions representing workers at
SPCC's operations in Peru have also participated in these
efforts.

"We hope that Grupo Mexico will realize the power of
international labor solidarity, and that it's in the interests
of all of the Company's stakeholders to respect our unions,"
said Gomez Urrutia.

STMMRM represents over 250,000 metal and mining industry workers
in Mexico. It represents workers at Grupo Mexico's Cananea and
La Caridad mines and its Nacozari smelter.

The USWA has over 600,000 members in the United States and
Canada and represents workers in steel, rubber and tire,
aluminum, mining, glass, forestry and health care.

CONTACT:  UNITED STEELWORKERS OF AMERICA
          Terry Bonds, 505-878-9756
          Manuel Armenta, 520-465-3617
          Adam Lee, 412-243-4236
          Napoleon Gomez Urrutia, 5 519 5301


GRUPO MEXICO: SPCC Shareholders OK Merger With Minera Mexico
------------------------------------------------------------
Shareholders of Grupo Mexico unit Southern Peru Copper
Corporation (SPCC) have agreed to merge SPCC with fellow Grupo
Mexico subsidiary Minera Mexico.

Under the agreement, SPCC will acquire 99.15% of Minera Mexico,
and Grupo Mexico's stake in Southern Peru will rise to 75.1%
from 54.2%.

The merger is effective April 1.

Grupo Mexico said Monday that SPCC will issue 67.2 million new
shares in conjunction with the merger and will also be
converting its class A controlling shares into common shares.

The new Company will have about US$1.3 billion in gross debt, a
concern for some investors. Pre-merger SPCC was relatively debt
free with US$290 million in gross debt but with some US$545
million in cash, according to Grupo Mexico data.

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
          Web site: http://www.gmexico.com



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

CENTENNIAL COMMUNICATIONS: Redeems $40M Senior Notes
----------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) announced Monday
that it will redeem $40 million aggregate principal amount of
its $185 million outstanding 10-3/4 percent senior subordinated
notes due December 15, 2008. The redemption will occur on or
about April 25, 2005, at a redemption price of 103.583 percent.

About Centennial

Centennial Communications (NASDAQ: CYCL), based in Wall, NJ, is
a leading provider of regional wireless and integrated
communications services in the United States and the Caribbean
with over 1 million wireless subscribers. The U.S. business owns
and operates wireless networks in the Midwest and Southeast
covering parts of six states. Centennial's Caribbean business
owns and operates wireless networks in Puerto Rico, the
Dominican Republic and the U.S. Virgin Islands and provides
facilities-based integrated voice, data, video and Internet
solutions. Welsh, Carson Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.

CONTACT: Mr. Steve E. Kunszabo
         Director, Investor Relations
         Centennial Communications Corp.
         Phone: 732-556-2220
         Web site: http://www.centennialwireless.com



=============
U R U G U A Y
=============

COFAC: Resumes Activities Following Central Bank Suspension
-----------------------------------------------------------
The reopening of Cooperativa Nacional de Ahorro y Credito
(COFAC) on March 15 marked a milestone for the Uruguayan
financial system. The entity's operations were suspended for
only seven days, during which time it formulated a
capitalization plan that obtained acceptance from 75% of its
depositors with balances over US$15,000.

Following the suspension of COFAC on March 4, Fitch downgraded
its international long-term rating to 'D' and its national long-
term rating to 'D(ury)'. Fitch will revise those ratings in the
short term following a thorough analysis of COFAC's financial
profile and prospects following the capitalization and
restructuring of its liabilities. It is likely that COFAC will
suffer a reduction in the size of its operations in the near
term as a result of the suspension, and its ability to rebuild
its business over time will depend to a large extent on the
loyalty of its members.

The brief suspension period was the result of the prompt
collaborative efforts of both the Central Bank of Uruguay (BCU)
and the Parliament, as well as the support of COFAC by its
shareholders. BCU allowed COFAC to reopen, although it imposed
new, more stringent regulatory requirements on the institution.
At the same time, the Parliament approved a law that allowed
COFAC to quickly reach an agreement with its depositors. The
orderly and transparent handling of the intervention limited the
potential contagion on other cooperatives, which is notable
given the still fragile state of the Uruguayan financial system
following the last crisis.

COFAC proposed a capitalization plan to its depositors with the
prior approval from its regulators that called for the
compulsory capitalization of a portion of deposits over
US$15,000, excluding checking account balances, as follows: 12%
of deposits between US$15,000 and US$25,000 and 26% of deposits
over US$25,000. In addition, the uncapitalized portion of these
deposits was restructured with gradually increasing quarterly
amortizations. The measure affected nearly 4,000, mainly
institutional investors, a relatively small proportion of
COFAC's total depositor base (122,000 clients).

COFAC has been allowed to operate without changes in its license
but will be subject to greater supervision. The new requirements
imposed on COFAC include a capital injection of US$40 million,
achieved through the capitalization of deposits, maintenance of
a 15% risk-weighted capital ratio, additional liquidity
reserves, and sizable reductions in its cost structure and
personnel. The latter has already been agreed upon with the
union. COFAC has also agreed to increase the activities carried
out in local currency (Uruguayan pesos) as opposed to the U.S.
dollar.

CONTACT: Maria Fernanda Lopez
         Tel: +54 11 4327 2444 ext. 70, Buenos Aires

         Ana Gavuzzo
         Tel: +54 11 4327 2444 ext. 73, Buenos Aires

         Peter Shaw
         Tel: +1-212-908-0553, New York

         Linda Hammel
         Tel: +1-212-908-0303, New York

MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York



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

EDC: Board Approves Dividend Distribution
-----------------------------------------
The board of directors of La Electricidad de Caracas endorsed
the payment of a Bs. 54 billion dividend, Bs. 17,10/ share
during a meeting held after the annual general shareholder
meeting.

During the Shareholders meeting, the 2004 financial outcome was
submitted; senior and alternate members of the board of
directors for 2004-2005 were ratified; senior and alternate
External Directors Committee for the same term were elected, and
the corporate balance sheet and consolidated financial
statements as of 2004 were made known.

La Electricidad de Caracas CEO, Andres Gluski, who was ratified
as chairman of the board of directors, noted: "In 2004, we
concentrated on improving our customers satisfaction index and
enhance our capabilities. Such successes were possible thanks to
our people's ability to face business challenges and draw on
emerging opportunities." "There were Bs. 4,6 billion in losses
as a result of tariff lag and a fuel price increased by 39.7%,"
the CEO added.

In 2004, the Company debt was restructured achieving a debt
average life of 4.2 -year term following two financial
operations -a syndicated loan for Bs. 200 billion and the
placement of 10-year bonds in the international market for USD
260 million. Thus, an investment for grid enlargement and
maintenance amounting to Bs. 99 billion will be possible.

Additionally, the meeting resolved the issuance of bonds,
liabilities and other securities under the Capital Market Law;
top amounts and terms were set, and the payment of a special
dividend in cash was resolved, with the board of directors being
empowered to set the timing and the amount.

CONTACT: La Electricidad de Caracas
         Avenida Vollmer.
         San Bernardino, Caracas
         Zip Code: 2299
         Phone: (58.212) 502.21.11


PDVSA: Looks to Eliminate Discount Practices With New Formulas
--------------------------------------------------------------
State oil giant Petroleos de Venezuela (PDVSA) is looking to
implement new formulas for pricing crude exports in order to
stamp out discounted oil sales, reports Dow Jones Newswires.

PdVSA has vowed to scrap oil supply contracts to its refineries
in the U.S. and Europe, saying the contracts sell oil at a
discount compared to prices on the free market.

"With the installation of a Committee for Export Prices (Copex),
a new formula system for selling crude and the establishment of
clear negotiating mechanisms, we are looking to eradicate the
practice of discounts that existed in the past," PdVSA said in a
statement.

The new formulas will link prices to "public indicators",
including prices published by Platt's and Argus, two industry
publications.

Previous formulas were calculated according to the physical and
chemical characteristics of Venezuelan crude.


PDVSA: To Finance Construction of Houses Using Windfall Revenue
---------------------------------------------------------------
PDVSA, through its subsidiary CVP, will disburse US$258 million
for the construction of public housing and mass transportation
in lower income areas, reports Business News Americas.

In a statement, the Company explained: "These resources are part
of PDVSA's contribution to social investment in the country,
using the surplus from oil prices to benefit the needy."

This is the first time that the government has explicitly
acknowledged there was windfall revenue from the record oil
prices seen in the international oil market since mid-2004.

Most of the CVP spending will be used to build new housing
units, with some for repairs to houses damaged by heavy February
rains that left thousands homeless and at least a dozen dead
nationwide.




                            ***********


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 2005.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
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The TCR Latin America subscription rate is $575 per half-year,
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