TCRLA_Public/050428.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, April 28, 2005, Vol. 6, Issue 83

                            Headlines


A R G E N T I N A

AMBORIA S.A.: Creditor Claim Filing Deadline Ends May 27
BA & AR S.R.L.: Verification Deadline Approaches
COMPANIA ADMINISTRADORA: Court Names Trustee for Liquidation
COMPANIA INTERAMERICANA: Court Orders Liquidation
CONEMAR S.R.L.: Required Reports Deadline Submission Set

DUQUE CUYO: Starts Liquidation Process
EDEMSA: Seeks to Conclude Contract Renegotiations By End-June
EDENOR: JP Morgan to Help Parent Company Assess Options
MARTORELL Y CIA: Claims Review Deadlines Set
NORFRANCE S.A.: Court Authorizes Plan, Concludes Reorganization

NOVA GARDENA: Liquidates Assets to Pay Debts
SERVICIOS HORIZONTE: Gets Court Approval to Reorganize
SUDAMERICAN S.A.: Liquidation Upgraded to Reorganization
TBA: Initiates Formal Restructuring Proceeding
* S&P Details Corporate Ratings In Post-Default Argentina


B E R M U D A

LORAL SPACE: Builds New Satellite for ICO


B R A Z I L

BANCO BRADESCO: Ops to Sell Bonds on the Local Market
COPEL: Shareholders Approve 2004 Financial Statements
KLABIN: Reports BRL128M Profit in 1Q05


M E X I C O

CORPORACION GEO: Improved Results Prompts UBS Upgrade
DIRECTV GROUP: Expands Programming With F1 Satellite
GRUPO MEXICO: SPCC Names New Executive Officers
MERIDIAN AUTOMOTIVE: LatAm Ops Excluded From Bankruptcy Filing
UNEFON: Rising Expenses Cut Profits in Half

VITRO: Slides Into Red With $23M Net Loss in 1Q05


P A R A G U A Y

COPACO: Earmarks $7M to Launch New Mobile Service


P E R U

PAN AMERICAN SILVER: Begins Production of New Silver Bullion


P U E R T O   R I C O

R&G FINANCIAL: To Restate Earnings for Years 2003, 2004
R&G FINANCIAL: Valuation Revisions Prompt Rating Watch Negative


V E N E Z U E L A

CNV: Government Gets Clearance to Seize Remaining Assets
PDVSA: Commences Talks to Replace 32 Existing Oil Contracts


     - - - - - - - - - -


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

AMBORIA S.A.: Creditor Claim Filing Deadline Ends May 27
--------------------------------------------------------
Mr. Abraham Elias Gutt, the trustee overseeing the liquidation
of Amboria S.A., will accept proofs of claims submitted by the
company's creditors until May 27, says Infobae. Failure to
comply with the submission deadline will disqualify creditors
from receiving any post-liquidation distributions.

Court No. 4 of Buenos Aires' civil and commercial tribunal has
jurisdiction over this case. The city's Clerk No. 7 assists the
court with the proceedings.

CONTACT: Mr. Abraham Elias Gutt, Trustee
         Tucuman 1484
         Buenos Aires


BA & AR S.R.L.: Verification Deadline Approaches
------------------------------------------------
The verification of claims for the Ba & Ar S.R.L. bankruptcy
case will end on May 2 according to Infobae. Creditors with
claims against the bankrupt company must present proof of the
liabilities to Ms. Maria Marcela Porolli, the court-appointed
trustee, before the deadline.

Court No. 4 handles the company's case with the assistance of
Clerk No. 7. The bankruptcy will conclude with the liquidation
of the company's assets to pay its creditors.

CONTACT: Ms. Maria Marcela Porolli, Trustee
         Parana 785
         Buenos Aires


COMPANIA ADMINISTRADORA: Court Names Trustee for Liquidation
------------------------------------------------------------
Buenos Aires-based accountant Pablo Javier Kainsky was assigned
trustee for the liquidation of Compania Administradora y
Procesadora de Tarjetas S.A., relates Infobae.

Mr. Kainsky will verify creditors' claims until June 7, the
source adds. After that, he will prepare the individual reports,
which are to be submitted in court on August 3. The submission
of the general report should follow on September 15.

The city's civil and commercial Court No. 16 holds jurisdiction
over the Company's case. Clerk No. 31 assists the court with the
wind-up proceedings.

CONTACT: Mr. Pablo Javier Kainsky, Trustee
         Reconquista 715
         Buenos Aires


COMPANIA INTERAMERICANA: Court Orders Liquidation
-------------------------------------------------
Compania Interamericana de Transportes S.R.L. prepares to wind-
up its operations following the bankruptcy pronouncement issued
by Court No. 23 of Buenos Aires' civil and commercial tribunal.
The declaration effectively prohibits the company from
administering its assets, control of which will be transferred
to a court-appointed trustee.

Infobae reports that the court appointed Mr. Roberto Leibovicius
as trustee. Mr. Leibovicius will be reviewing creditors' proofs
of claims until May 23. The verified claims will serve as basis
for the individual reports to be presented for court approval on
July 6. The trustee will also submit a general report of the
case on September 2.

Clerk No. 45 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Compania Interamericana de Transportes S.R.L.
         Ventana 3665
         Buenos Aires

         Mr. Roberto Leibovicius, Trustee
         Tucuman 1585
         Buenos Aires


CONEMAR S.R.L.: Required Reports Deadline Submission Set
--------------------------------------------------------
Mr. Miguel Daniel Pellejero Herrero, the trustee assigned to
supervise the liquidation of Conemar S.R.L., will submit the
validated individual claims for court approval on July 25. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report of the case on
September 7.

Infobae reports that Court No. 20 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 39 assists the court with the proceedings.

CONTACT: Mr. Miguel Daniel Pellejero Herrero, Trustee
         Raul Scalabrini Ortiz 2835
         Buenos Aires


DUQUE CUYO: Starts Liquidation Process
--------------------------------------
Duque Cuyo S.A. of Buenos Aires will begin liquidating its
assets after Court No. 5 of the city's civil and commercial
tribunal declared the company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee Guillermo Alejandro Torres.

The trustee will review claims forwarded by the company's
creditors until June 23. After claims verification, he will
submit the individual reports for court approval on August 22.
The general report submission will follow on October 3.

Clerk No. 9 assists the court on this case.

CONTACT: Mr. Guillermo Alejandro Torres, Trustee
         Avda Corrientes 922
         Buenos Aires


EDEMSA: Seeks to Conclude Contract Renegotiations By End-June
-------------------------------------------------------------
Edemsa, the power distributor serving the province of Mendoza,
expects to sign a renegotiated contract with the provincial
government by June 30.

Business News Americas recalls that the utility has agreed but
not yet signed a letter of understanding with Mendoza's public
utilities contract renegotiation commission in which Edemsa says
the government has recognized the need for tariffs to be
adjusted.

The agreement came three weeks after Electricite de France SA
(EdF) completed the sale of its stake in Edemsa's controlling
shareholder to the local Iadesa consortium.

EdF sold its 88% stake in the Sodemsa consortium that owns 51%
of Edemsa for an undisclosed amount. Iadesa, led by businessman
Jose Angulo, formerly held a 12% share in Sodemsa.

Edemsa has some 310,000 clients over its 110,000 sq. km.
concession area. Mendoza province owns 39% of Edemsa, while the
other 10% is in the hands of company employees, according to
press reports.

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


EDENOR: JP Morgan to Help Parent Company Assess Options
-------------------------------------------------------
Power distributor Edenor SA informed the Buenos Aires Stock
Exchange that its French parent, Electricite de France, has
retained investment bank JP Morgan Chase "to evaluate strategic
alternatives" for the Argentine unit.

In the statement, Edenor disclosed that EdF has initiated
preliminary talks with possible buyers.

EdF controls Edenor through its direct holding, Electricidad
Argentina SA (EASA), which has a 51% stake in the power
distributor. EdF owns a further 39% direct stake in Edenor,
which distributes electricity to the northwestern half of
greater Buenos Aires.

Edenor posted net losses of ARS89.9 million (US$30.8mn) in 2004.
The Company has been negatively affected by the devaluation of
the peso in early 2002 and subsequent rates freeze. As of
December 31, 2004, Edenor had ARS1.53 billion of net equity.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mail: to ofitel@edenor.com.ar
          Web Site: http://www.edenor.com.ar


MARTORELL Y CIA: Claims Review Deadlines Set
--------------------------------------------
Mr. Carlos Federico Berger, the trustee assigned to supervise
the liquidation of Martorell y Cia S.A. Sociedad de Bolsa will
submit the validated individual claims for court approval on
August 25. These reports explain the basis for the accepted and
rejected claims. The trustee will also submit a general report
of the case on October 6.

Infobae reports that Court No. 3 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
The city's Clerk No. 6 assists the court with the proceedings.

CONTACT: Mr. Carlos Federico Berger, Trustee
         Santiago del Estero 112
         Buenos Aires


NORFRANCE S.A.: Court Authorizes Plan, Concludes Reorganization
---------------------------------------------------------------
Buenos Aires-based company Norfrance S.A. concluded its
reorganization process, according to data released by Infobae.
The decision came after the city's civil and commercal Court No.
20, with assistance from Clerk No. 40, homologated the debt plan
signed between the Company and its creditors.

CONTACT: Norfrance S.A.
         Corrientes 3076
         Buenos Aires
         Phone: 861-2088


NOVA GARDENA: Liquidates Assets to Pay Debts
--------------------------------------------
Nova Gardena S.R.L. will begin liquidating its assets following
the bankruptcy pronouncement issued by Court No. 20 of Buenos
Aires' civil and commercial tribunal, Infobae reports.

The ruling places the company under the supervision of court-
appointed trustee Ruben Daniel Sarafian. The trustee will verify
creditors' proofs of claims until June 16. The validated claims
will be presented in court as individual reports on August 12.

The trustee will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, on September 26.

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

CONTACT: Mr. Ruben Daniel Sarafian, Trustee
         Tucuman 1657
         Buenos Aires


SERVICIOS HORIZONTE: Gets Court Approval to Reorganize
------------------------------------------------------
Servicios Horizonte S.A. will begin reorganization following the
approval of its petition by Court No. 5 of Buenos Aires' civil
and commercial tribunal. The opening of the reorganization will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

Ms. Monica Graciela Aquin will oversee the reorganization
proceedings as the court-appointed trustee. She will verify
creditors' claims until June 6. The validated claims will be
presented in court as individual reports on July 5.

Ms. Aquin is also required to submit a general report
essentially auditing the company's accounting and business
records as well as summarizing important events pertaining to
the reorganization. The report will be presented in court on
August 31.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on March 3.

The city's Clerk No. 10 assists the court on this case.

CONTACT: Ms. Monica Graciela Aquin, Trustee
         Uruguay 660
         Buenos Aires


SUDAMERICAN S.A.: Liquidation Upgraded to Reorganization
--------------------------------------------------------
Sudamerican S.A. will proceed with reorganization after Court
No. 5 of Buenos Aires' civil and commercial tribunal converted
the Company's ongoing bankruptcy case into a "concurso
preventivo", states Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.

The report adds that the court assigned Mr. Ernesto Horacio
Garcia as trustee, who will verify creditors' proofs of claim
until May 30.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by June 28. A general report on the bankruptcy process is
expected on August 24.

The Company is set to hold an informative assembly for its
creditors on February 24 next year. Creditors will vote to
ratify the completed settlement plan during the said assembly.

CONTACT: Sudamerican S.A.
         La Pampa 2037
         Buenos Aires

         Mr. Ernesto Horacio Garcia, Trustee
         Montevideo 536
         Buenos Aires


TBA: Initiates Formal Restructuring Proceeding
----------------------------------------------
Argentine passenger railway concessionaire Trenes de Buenos
Aires (TBA) initiated a formal restructuring proceeding on April
22. The restructuring reportedly involves debt totaling ARS50
million.

CONTACTS: CAP Centro de Atenci˘n al Pasajero
          E-mail: cap@tbanet.com.ar

          Marketing y Promociones
          E-mail: marketing@tba-sa.com.ar

          Operacion Salvavidas
          E-mail: operacionsalvavidas@tba-sa.com.ar

          Prensa
          E-mail: prensa@tbanet.com.ar

          Presidencia
          E-mail: presidencia@tbanet.com.ar

          Recursos Humanos
          E-mail: rrhh@tbanet.com.ar

          Sistemas
          E-mail: sistemas@tbanet.com.ar

          Sitio web. Sugerencias y comentarios.
          E-mail: comunicacion@tbanet.com.ar


* S&P Details Corporate Ratings In Post-Default Argentina
---------------------------------------------------------
On Feb 2, 2005, Standard & Poor's Ratings Services announced
that it expects to assign its 'B-' foreign and local currency
sovereign credit ratings to the Republic of Argentina following
the financial close of the current debt rescheduling exercise.
Nonetheless, this rating upgrade will not automatically trigger
a general proportional upgrade among corporate entities
operating in Argentina.

The new sovereign rating of Argentina will reflect Standard &
Poor's opinion about the country's ability and willingness to
meet its financial obligations as they come due. Nevertheless,
the substantial improvement in these two variables after the
debt exchange does not necessarily translate into an
instantaneous transformation of the operating environment in the
country. Macroeconomic variables have recovered and short-term
growth prospects are solid, and the resulting improved country
risk environment has been reflected gradually in several
corporate rating upgrades in 2005. The main risks affecting the
revenue generating ability of entities operating in the country,
particularly institutional risk, however, have not significantly
changed. As a result, although ratings on private entities will
continue to be linked to the economic and institutional
environment in the country, the change in the ratings on the
Republic of Argentina will not have a direct effect on the
ratings on Argentine corporations. Ensuing changes in corporate
ratings over the short-term will thus reflect sector- and
credit-specific factors rather than a perception of a general
improvement in credit quality in the country.

Standard & Poor's generally assigns both "local currency" and
"foreign currency" credit ratings to rated entities. Local
currency ratings refer to an entity's ability to generate enough
local currency resources to meet all its financial obligations
both in local and foreign currency. This addresses the entity's
credit characteristics and incorporates indirect sovereign or
economic risk, i.e. country risks. The foreign currency rating
incorporates, in addition, transfer and convertibility risks,
i.e. the risk of direct sovereign intervention that may
constrain payment of foreign-currency debt. The present article
refers mainly to local currency ratings, as foreign currency
ratings assigned to Argentine entities will remain constrained
by our current views on transfer and convertibility risks in the
country. Absent parent support or credit enhancements originated
outside the country and not contaminated/influenced by the
country's direct risks (i.e. parent support, third-party
guarantees, etc.), corporations operating in the volatile
Argentine environment are not expected to be rated above the 'B'
category, reflecting the ability of the government to limit
corporations' timely servicing of their foreign currency
obligations.

After A Successful Debt Restructuring, Argentina Still Faces
Several Challenges

Uncertainties persist about the ability to maintain a stable
economic trajectory and gain better access to market and
official funding. In this context, Argentina's future credit
rating will depend largely on the government's underlying fiscal
stance, especially its ability to contain pressure for
additional spending if economic growth decelerates sharply.

Following a deep recession between 1999 and 2002, the Argentine
economy quickly recovered, growing 8.8% in 2003 and 8.7% in
2004. This growth trend should start decelerating, but should
remain at a healthy 5%-6% for 2005. Longer term, Argentina will
find it difficult to gain monetary and fiscal flexibility to
consistently support GDP growth above 3%. Investments will be
hurt by an uncertain legal and regulatory system and
uncertainties about the level of external financing. Although
retained earnings, drawings on private-sector assets held abroad
(maybe $100 billion-$120 billion), and renewed consumer lending
by banks should help investments in the coming years,
Argentina's ability to reduce its historical dependence on
external capital for GDP growth will be constrained by a low
level of domestic savings. The challenge of restoring investor
confidence in the rules of the economic game, and the country's
political and institutional shortcomings, which are not likely
to improve quickly, impose a longer-term constraint on its
ability to attract investments, necessary to boost productivity,
even if government finances improve.

That Affect All Corporates Operating In The Country

Ratings ultimately reflect an opinion about the probability of a
certain entity's complying with all of its financial
obligations. The ability to estimate such probability is, in
turn, directly linked to the ability to forecast the entity's
normal cash-flow generation. Leaving aside entity-specific
issues, the level of comfort that can be achieved about such a
forecast varies from country to country depending on several
factors such as the country's growth prospects; the volatility
of macroeconomic variables, political stability, access to
credit (i.e. the strength of the banking system and the depth of
local capital markets), sensitivity of foreign direct investment
and portfolio flows, labor issues; infrastructure challenges;
accounting and transparency; and most notably, institutional
risk (legal and regulatory risk and credit culture issues, tax
risk, and corruption levels). These factors permeate the economy
and condition cash-flow generation and stability.

In Argentina, pervasive credit factors such as a high degree of
institutional risk, limited financial flexibility,
infrastructure challenges, and sector-specific factors continue
to negatively affect the corporate sector and impose
uncertainties on future cash flows. As a result, although some
Argentine entities have maintained healthy financial indicators
even after the crisis in 2002 or have significantly improved
their financial performance after restructuring their debt,
their ratings tend to be much lower than they would be for a
similar company operating in a more stable environment, given
the high degree of volatility imposed by the country risk
factors mentioned above.

More specifically, rated entities in Argentina still face the
following challenges:

    * High degree of institutional risks. Institutional risk is
the key challenge for companies operating in Argentina since it
results in an uncertain regulatory and legal environment. Solid
institutional risks are those with a high degree of
predictability, with clear mechanisms to settle disputes without
arbitrary or unilateral solutions, and where rules are
relatively stable across different administrations. The
implications of institutional risk are twofold. First, the legal
system in Argentina has proven to be very weak. Regulatory
instability, uncertainties regarding property rights and the
enforceability of contracts, as well as the lack of clear
creditor protections have deteriorated investor confidence,
seriously jeopardizing investment prospects. Second, the lack of
commitment to long-term regulations increases revenue volatility
and the risk of not meeting timely payments as appropriate.

    * Political stability. Political risks remain key for the
operating environment in Argentina as economic policy is likely
to drift toward more intervention, as shown by the recent plans
to establish a new energy company to give the government a
direct role in the oil and gas sector.

    * Limited financial flexibility. Financial flexibility is
particularly relevant in volatile environments as it supplements
internal cash flow and provides alternatives to insure the
timely payment of obligations and finance growth. Companies
operating in Argentina face a still-recovering banking sector
that still provides limited lending, mostly short term. Domestic
capital market activity has increased in 2004, driven by
institutional investors such as pension funds, which are
relatively liquid, and a recovering mutual fund sector. Although
this provided funding opportunities for the corporate sector,
transactions were mostly related to restructuring of defaulted
debt, and only a couple of corporations (owned by foreign
parents) were able to issue genuine new debt. Although some
cross-border financing is available for top-tier clients and
subsidiaries of major foreign companies (i.e. PESA, Pan
American, Quilmes, YPF, etc.), access to cross-border markets is
very unusual. Such limited financial flexibility represents an
important credit constraint, as companies have only their own
cash-flow generation, many times quite volatile, to service debt
and fund investments.

    * Long-term availability of infrastructure support. Given
the investments carried out in the 1990s, the current
infrastructure in Argentina is still adequate in terms of amount
and technology. Nevertheless, future infrastructure growth will
be conditioned by the renegotiation of the concession contracts,
which will determine the remuneration and level of protection
for investments in the country. This becomes especially
important in sectors such as power generation and transmission,
natural gas production and transportation, vial and port
infrastructure, which are expected to remain challenged in the
medium term, with very limited new investments. These sectors
condition future development as they provide the platform for
all other sectors to operate.

    * Volatile economic cycle. Long-term growth prospects remain
uncertain. After the devaluation, due to the change in relative
prices, a more commodity-oriented tradable sector took the
leading role in generating income. Because of the very positive
price scenario for commodities in the past three years, the
export sector strengthened, but it is still too small to support
robust growth. At the same time, due to the low per capita
income, internal consumption is unlikely to be a consistent
growth driver. The increasing percentage of investment over GDP
in the past two years can be explained by very fragmented
investments (mainly for export substitution and some exporters'
increase in capacity), and is not expected to result in a
significant production output increase. In addition, the lack of
investments in infrastructure might at some point result in a
constraint for future growth.

    * Exchange rate risk. Given a conjunction of factors (the
fiscal policy applied by the Central Bank, the depreciation of
the dollar in the international markets, the high prices of the
commodities, and the strong growth of the Argentine economy),
the exchange rate is not a major risk for Argentine corporations
in the near future. Nevertheless, given uncertainties regarding
long-term fiscal policy targets, particularly once the sovereign
debt is restructured (as well as the independence of the Central
Bank), it cannot be assumed that the risk has been mitigated in
the long run.

    * Political influence on regulatory decisions prevailing
over technical criteria. Regulators worldwide have demonstrated
a propensity to use tariffs as a macroeconomic tool, and even
independent regulators are susceptible to political pressure.

    * Sector-specifics. Mostly all the sectors have related
issues conditioning their credit quality. The clearest example
is in the utility sector, which still faces the renegotiation of
concession contracts, three years after the initial tariff
freeze in January 2002.

Country Risk Can Be Mitigated

In any country, including Argentina, there can be strong,
creditworthy companies that demonstrate that they are
significantly sheltered from sovereign and country risk, and
that would be unlikely to default on their local currency
obligations during a sovereign local and foreign currency
default scenario. Therefore, there can be cases where corporate
credit ratings can exceed the sovereign credit rating. On the
contrary, bank ratings typically remain constrained by the
sovereign rating, as historical evidence shows that banks are
generally widely affected by sovereign local and foreign
currency defaults.

In Argentina, while several corporates maintained ratings above
the 'SD' assigned to the country since 2001, most remained rated
in the 'CCC' category, reflecting the high degree of uncertainty
about future credit quality. Nevertheless, companies such as Pan
American Energy and Petrobras EnergĦa S.A. have been in the 'B'
category, and YPF S.A. has been in the 'BB' category since July
2003, reflecting their credit standing and their ability to
overcome country risk factors. This same case-specific approach
will be used to determine corporate rating upgrades after the
sovereign debt restructuring.

CONTACT:  Primary Credit Analyst:
          Pablo Lutereau, Buenos Aires
          Tel: (54) 114-891-2125
          E-mail: pablo_lutereau@standardandpoors.com

          Marta Castelli, Buenos Aires
          Tel: (54) 114-891-2128
          E-mail: marta_castelli@standardandpoors.com

          Secondary Credit Analyst:
          Laura Feinland Katz, New York
          Tel: (1) 212-438-7893
          E-mail: laura_feinland_katz@standardandpoors.com



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

LORAL SPACE: Builds New Satellite for ICO
-----------------------------------------
Space Systems/Loral (SS/L) announced Tuesday it recently signed
a contract with ICO Satellite Management, LLC for the design and
construction of a geostationary Mobile Satellite Services (MSS)
satellite that, together with an Ancillary Terrestrial Component
(ATC), will be capable of providing mobile voice and data
communications throughout the United States.

"The 2-GHz mobile systems are driving a growing segment of
today's satellite manufacturing industry," said Bernard L.
Schwartz, chairman and CEO of Loral Space & Communications.
"With ICO and other 2-GHz programs under development, SS/L has
put a stake in the ground as the leading provider of these next
generation mobile satellites."

ICO's GEO satellite is based on SS/L's space-proven 1300
platform, which has an excellent record of reliable operation.
Its high efficiency solar arrays and lightweight batteries are
designed to provide uninterrupted electrical power. In all, SS/L
satellites have amassed almost 1,200 years of reliable on-orbit
service.

ICO is one of two companies awarded licenses by the FCC to
provide satellite-based communications services with ATC
technology in the 2-GHz frequency band. With its SS/L
constructed geostationary satellite and ATC, ICO will provide
next generation mobile voice and data services, providing
complete coverage regardless of the user's location.

Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTCBB: LRLSQ), is a premier designer,
manufacturer, and integrator of powerful satellites and
satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the company has
an international base of commercial and governmental customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L is ISO 9001:2000
certified.

Loral Space & Communications is a satellite communications
company. In addition to Space Systems/Loral, through its Skynet
subsidiary Loral owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
and for broadband data transmission, Internet services and other
value-added communications services.

CONTACT: Mr. John McCarthy
         Phone: (212) 338-5345



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

BANCO BRADESCO: Ops to Sell Bonds on the Local Market
-----------------------------------------------------
Banco Bradesco, Brazil's third- biggest bank, plans to cut by
more than half the US$2 billion of bonds it planned to sell on
foreign markets this year as borrowing costs rise, Bloomberg
reports. Instead, it will tap growing demand for debt in the
local currency by issuing 20-year bonds worth BRL4 billion on
the domestic market.

"Brazil's biggest companies are choosing to sell bonds locally,"
said Emilio Otranto, head of capital markets for Banco
Votorantim, the financial arm of Brazil's largest industrial
group in a telephone interview. "Interest rates in the U.S. have
been coming up since last year and there is a concern the Fed
may speed up rate increases."

The domestic bonds probably will be priced to yield the same as
Brazil's overnight interbank deposit rate, or 19.41 percent a
year, the bank's statement said.

CONTACT: Banco Bradesco S.A.
         Predio Novo - 4 ANDAR
         Cidade de Deus
         S/N, Osasco
         Sao Paulo, 06029-900
         Brazil
         Phone: 55-11-3684-9229
         Web site: http://www.bradesco.com.br


COPEL: Shareholders Approve 2004 Financial Statements
-----------------------------------------------------
Companhia Paranaense de Energia (Copel)held its 50th annual
shareholders' meeting Monday at the Company's headquarters in
Rua Coronel Dulcidio. The meeting was attended by 89.70 percent
of the voting stock and 60.97 percent of the total preferred
shareholders.

AGENDA:

ITEM 1:

The Management report, balance sheet and other accounting
statements referring to the year 2004 were approved by unanimous
vote, with the abstention of the Shareholder BNDES Participacoes
S.A. - BNDESPAR, by means of its representative and the
shareholders represented by Dr. Lucila Prazeres da Silva, having
Mrs. Marcia Regina de Noronha Machado, representative of the
shareholders holding ADR's, held in custody at The Bank of New
York, voted as follows: 2,644,500 ADR's favorably, 100 ADR's
with abstention and 308,601 ADR's pursuant to the vote of the
Representative of the State of Parana;

ITEM 2:

It was approved by unanimous vote, with the abstention of the
Shareholder BNDES Participacoes S.A. - BNDESPAR, by means of its
representative and the shareholders represented by Dr. Lucila
Prazeres da Silva, having Mrs. Marcia Regina de Noronha Machado,
representative of the shareholders holding ADR's, held in
custody at The Bank of New York, voted as follows: 2,644,500
ADR's favorably, 100 ADR's with abstention and 308,601 ADR's
pursuant to the vote of the Representative of the State of
Parana, the Proposal of the Board of Executive Officers for the
Allocation of the Net Income Verified in the Year 2004, of three
hundred, seventy four million, one hundred, forty seven
thousand, seven hundred, ninety reais and fifty two centavos (R$
374,147,790.52), as follows:

a) eighteen million, seven hundred, seven thousand, three
hundred, eight nine reais and fifty three centavos (R$
18,707,389.53), equivalent to 5 % of the net income, for the
constitution of the Legal Reserve;

b) ninety six million, sixty one thousand, two hundred, twelve
reais and forty two centavos (R$ 96,061,212.42) for the payment
of interest on own capital, in replacement to the minimum
mandatory dividends, which shall be paid based on the ownership
structure on 4.25.2005, with ex-interest date on 4.26.2005, with
Withholding Income Tax at a fifteen percent (15%) rate, in up to
sixty (60) days after this Meeting, in the following amounts: R$
0.33396 per a thousand common shares; R$ 1.27167 per a thousand
class A preferred shares and R$ 0.36743 per a thousand class B
preferred shares;

c) two hundred, fifty nine million, three hundred, seventy nine
thousand, one hundred, eighty eight reais and fifty seven
centavos (R$ 259,379,188.57), corresponding to the remaining net
income for the year 2004, as Income Withholding Reserve, by
means of ensuring the Company's investment programs. The payment
of eighteen million, three hundred, eighteen thousand, five
thousand, ninety eighty reais and sixty six centavos (R$
18,318,598.66) related to the stake referring to the integration
between capital stock and the work and incentive to productivity
based on the Law 10,101, as of 12.19.2000 and under the terms of
the Article 7, item XI, of the Constitution of the Republic, and
the specific Labor Agreement, was also approved.

ITEM 3:

To compose the Board of Directors during the 2005/2007 term of
office, having Mrs. Marcia Regina de Noronha Machado,
representative of the shareholders holding ADR's, held in
custody at The Bank of New York, voted as follows: 2,644,500
ADR's favorably, 100 ADR's with abstention and 308,601 ADR's
pursuant to the vote of the Representative of the State of
Parana, the following members were elected, by unanimous vote:

Mr. JOAO BONIFACIO CABRAL JUNIOR - Chairman
Mr. RUBENS GHILARDI - Executive Secretary

Members:

Mr. ACIR PEPES MEZZADRI
Mr. SERGIO BOTTO DE LACERDA
Ms. LAURITA COSTA ROSA
Mr. ROGERIO DE PAULA QUADROS
Ms. MARIA APARECIDA RODRIGUES PLACA
Mr. FRANCELINO LAMY DE MIRANDA GRANDO
Mr. NELSON FONTES SIFFERT FILHO

ITEM 4

To compose the Fiscal Council during the 2005/2006 term of
office, with the abstention of the Shareholder BNDES
Participacoes S.A. - BNDESPAR, by means of its representative,
having Mrs. Marcia Regina de Noronha Machado, representative of
the shareholders holding ADR's, held in custody at The Bank of
New York, voted as follows: 2,644,500 ADR's favorably, 100 ADR's
with abstention and 308,601 ADR's pursuant to the vote of the
Representative of the State of Parana, the following members
were elected, by unanimous vote, as EFFECTIVE MEMBERS:

Mr. PAULO ROBERTO TROMPCZYNSKI
Mr. NELSON PESSUTI
Mr. ANTONIO RYCHETA ARTEN

and as ALTERNATE MEMBERS:

Mr. SERAFIM CHARNESKI
Mr. MOACIR JOSE SOARES
Mr. MAURILIO LEOPOLDO SCHMITT

In compliance with the Article 240 of the Law 6404/76, the
Shareholders holding minority common shares elected by unanimous
vote, by means of their representatives, with the abstention of
the Shareholder BNDES Participacoes S.A. - BNDESPAR, having Mrs.
Marcia Regina de Noronha Machado, representative of the
shareholders holding ADR's, held in custody at The Bank of New
York, voted as follows: 2,644,500 ADR's favorably, 100 ADR's
with abstention and 308,601 ADR's pursuant to the vote of the
Representative of the State of Parana, to compose the Fiscal
Council, for the 2005/2006 term of office, as effective member:
Mr. MARCIO LUCIANO MANCINI and as alternate member Mr. FELIPE
HIRAI.

Also in compliance with the Article 240 of the Law 6404/76, the
floor was offered to the preferred shareholders for the
indication of a sitting member and an alternate member of the
Fiscal Council. As there was no indication, the Representative
of the State of Parana indicated to compose the Fiscal Council,
as effective member, the ex Member of the Company's Board of
Directors: Mr. LINDSLEY DA SILVA RASCA RODRIGUES who was elected
by unanimous vote, with the abstention of BNDES Participacoes
S.A. - BNDESPAR, by means of its representative, having Mrs.
Marcia Regina de Noronha Machado, representative of the
shareholders holding ADR's, held in custody at The Bank of New
York, voted as follows: 2,644,500 ADR's favorably, 100 ADR's
with abstention and 308,601 ADR's pursuant to the vote of the
Representative of the State of Parana.

ITEM 5

It was approved, by unanimous vote, with the abstention of the
Shareholder BNDES Participacoes S.A. - BNDESPAR, by means of its
representative and the shareholders represented by Dr. Lucila
Prazeres da Silva, having Mrs. Marcia Regina de Noronha Machado,
representative of the shareholders holding ADR's, held in
custody at The Bank of New York, voted as follows: 2,644,500
ADR's favorably, 100 ADR's with abstention and 308,601 ADR's
pursuant to the vote of the Representative of the State of
Parana, the proposal that, for the Executive Officers the
compensation form already practiced by the Company is maintained
and for each existing member of the Board of Directors and the
Fiscal Council a monthly compensation is paid, equivalent to
fifteen percent (15%) of that, which, on average, is attributed
to each Executive Officer, including the 13th compensation, and
in compliance with the terms of the Article 11 of the Rule
approved by the State Decree 6,343, as of 9.18.85, and in the
events of possible replacement of a sitting Fiscal Council
Member by the respective alternate member, he shall receive, in
each month any replacement takes place, compensation equivalent
to the sitting member, without loss to his compensation, and the
annual global amount of the compensation of administrators and
fiscal members is determined at five million and five hundred
thousand reais (R$ 5,500,000.00).

ITEM 6

It was approved, by unanimous vote, with the abstention of the
Shareholder BNDES Participacoes S.A. - BNDESPAR and the
shareholders represented by Dr. Lucila Prazeres da Silva, having
Mrs. Marcia Regina de Noronha Machado, representative of the
shareholders holding ADR's, held in custody at The Bank of New
York, voted as follows: 2,644,500 ADR's favorably, 100 ADR's
with abstention and 308,601 ADR's pursuant to the vote of the
Representative of the State of Parana, that the publications
ordered by the Federal Law 6,404/76 (Corporation Law) shall be
made in the Official Gazette of the State of Parana and in the
newspapers O Estado do Parana and Diario Comercio Industria e
Servicos. Nothing more to be deal with, the Meeting was
adjourned for the time required to draw up the Minutes, which,
upon the reopening of the meeting, were read and approved. Their
publication in the summary format was authorized by the
Shareholders and the Chairman concluded the Meeting.

CONTACT: Companhia Paranaense de Energia-Copel
         Rua Coronel Dulcidio 800
         Curitiba
         Parana, 80420-170
         Brazil
         Phone: (5541) 322-3535



KLABIN: Reports BRL128M Profit in 1Q05
--------------------------------------
Highlights:

- Sales volume totaled 317 thousand tons.
- Net revenue amounted to R$ 673 million.
- Net revenue from domestic sales reached R$ 490 million.
- Export revenues amounted to US$ 69 million or 27% of total net
revenue.
- Cash generation (EBITDA)totaled R$ 246 million, with an EBITDA
margin of 37%.

In January, the pulp production capacity was increased by 100
thousand t/year and paper by 50 thousand t/year with the
completion of the de-bottlenecking project in Monte Alegre (PR).
The interconnections procedures required a downtime of six days.
By February, the plant's performance had already improved and
its annualized output was just about the same as its new
installed capacity. The month of February also saw a planned
downtime for maintenance work at Otacilio Costa (SC).

Financial Highlights

The information presented herewith in connection with the
Company's operations and finances in 1Q05, 1Q04 and 4Q04
consists of consolidated figures stated in local currency (R$),
in accordance with the generally accepted accounting practices
adopted in Brazil, except where otherwise indicated.

ECONOMIC AND FINANCIAL PERFORMANCE

Sales Volume and Net Revenue

Sales volume totaled 317 thousand tons in 1Q05, following a
seasonal cycle typical of this period. Klabin's performance met
expectations, despite a reduction in total export volumes.

The Brazilian Association of Corrugated Cardboard Producers
(ABPO) published that shipments of corrugated cardboard boxes,
sheets and accessories was, in the 1Q05, 1.2% higher than 1Q04,
however Klabin shipments was 6% higher than the same period last
year.

Net revenue amounted to R$ 673 million in 1Q05, owing primarily
to the performance of domestic sales and the good level of wood
sales to sawmills and laminating companies.

Operating Result

The cost of goods sold (COGS) grew in 1Q05 due to an increase in
the price of supplies, in particular caustic soda, aluminium
sulphite, latex and fuel oil. Another factor that contributed to
the increase of COGS was the planned downtime for maintenance
work at Otacilio Costa (SC) and for interconnections at Monte
Alegre (PR), as part of the de-bottlenecking project.

The COGS in 1Q05 represented 54.1% of net revenue, maintaining
the same level of 1Q04 (54.2%) and a reduction in comparison to
4Q04 (55.1%).

Gross profit totaled R$ 309 million in 1Q05, up 7% from 1Q04 and
down 2% from 4Q04. Gross margins remained at 46% in 1Q05.

Selling expenses, the most important item of which is export
freight (R$ 43 million), fell 1% and 7% from 1Q04 and 4Q04,
respectively. In 1Q05, break bulk freight costs rose 10% for
shipments to northern Europe and 19% for products sold to Italy.

Despite the downtimes mentioned above, general and
administrative expenses decreased R$ 11 million in comparison
with 4Q04, but they increased R$ 8 million in relation to 1Q04
due to annual collective salary adjustments totaling 8% on
average in 4Q04.

Operating result before net financial totaled R$ 187 million in
1Q05, up 8% from 1Q04 and down 1% from 4Q04, with an operating
margin of 28%.

Operating Cash Generation (EBITDA)

Operating cash generation (EBITDA) reached R$ 246 million in
1Q05, up R$16 million from 1Q04 and down R$ 2 million from 4Q04,
with a margin of 37%.

Financial Result and Indebtedness

Net financial expenses amounted to R$ 30 million in 1Q05, which
represents a R$ 16 million reduction in relation to 4Q04 and an
R$ 8 million growth in comparison with 1Q04. Long-term gross
debt represented 74% of total indebtedness at the end of March
2005.

The average term of Klabin's debt profile was lengthened to 28
months, with terms to maturity extending to 2013. In 1Q05, the
real appreciated 0.4% and 8.3% (position at the end of the
month) in relation to 4Q04 and 1Q04, respectively.

Debts denominated in foreign currency totaled US$ 253 million in
1Q05 and they corresponded to 38% of gross debt. Trade finance
(natural hedging) accounted for 76% of this debt.

The amount hedged as at March 31, 2005 was US$ 100 million.

The EBITDA / Net Financial Expenses ratio in 1Q05 was 8.2 times.
Net debt corresponds to 16% of total capitalization and 39% of
annualized EBITDA. Debentures issued in November 2004 and not
convertible into shares received a BrA+ rating by Standard &
Poor's. This rating was reviewed up to BrAA- in February 2005
and it is expected to remain at this level going forward.

Net Result

The net profit reported in 1Q05 was R$ 128 million, up 7% and
44% from 1Q04 and 4Q04, respectively.

BUSINESS EVOLUTION

BUSINESS UNIT - FORESTRY

Klabin sold 1.9 million tons of Pinus and Eucalyptus logs in
1Q05, of which 1.1 million tons were transferred to the plants
in Parana, Santa Catarina and Sao Paulo. The volume of wood sold
to sawmills and laminating companies in Parana and Santa
Catarina totaled 779 thousand tons. Demand for logs remained
high throughout the quarter due to the level of activity in the
U.S. building industry. Net revenue from sales to third parties
reached R$ 77 million, up 26% and 3% from 1Q04 and 4Q04,
respectively.

Klabin has 353 thousand ha of lands shown in the table below:

Land and Forests                    1,000 ha
Company land                          353
Planted forests                       185
Pine/Araucaria                        145
Eucalyptus                             40
Native preserved forests              120

BUSINESS UNIT - PAPERS

In the downtime that occurred at Monte Alegre last January,
Klabin made certain interconnections required under the plant's
de-bottlenecking project, which increased installed capacity of
pulp by 100 thousand t/year and 50 thousand t/year of paper
production, reducing the level of variable costs for fibers and
improving general paper quality. Production showed positive
results in February, indicating the success of this project.

The month of February saw another planned downtime, this time
for maintenance work at Otacilio Costa (SC), when the quality
control system of the machines was substituted, allowing for
better quality in production.

The volume of paper and cardboard sales to third parties totaled
178 thousand tons in 1Q05, down 16% and 3% from 1Q04 and 4Q04,
respectively. Exports accounted for 62% of the total volume.

Cardboard sales reached 73 thousand tons, generating a net
revenue of R$ 149 million. Exported volume was 19 thousand tons
with a revenue of R$ 39 million. Klabin's cardboard sales force
has developed new clients in traditional markets such as Central
Europe, and continues to develop the cardboard market for US and
Canada, which present good volume perspectives in the short
term. Its cardboard products already enjoy the approval of large
international breweries in Europe and North America.

Kraftliner sales totaled 105 thousand tons in 1Q05, of which 92
thousand tons were sold to offshore clients. The export volumes
were exceptionally high in 1Q04 due to shipments related to
4Q03. Kraftliner net revenue reached R$ 136 million.

International prices for kraftliner in northern Europe rose by
approximately US$ 100/ton in 2004. However, with the pressure on
large U.S. producers to sell their inventories, quotations fell
by roughly US$ 30/ton in 1Q05 and they are now expected to
remain level in 2Q05.

Net revenue from kraftliner exports was negatively affected by
two factors, namely: 1) an average appreciation of 4% of the
real against the U.S. dollar in relation to 4Q04; and 2) an
adjustment of approximately 15% in freight costs for shipments
to Europe.

BUSINESS UNIT - PACKAGING - CORRUGATED CARDBOARD

Preliminary data published by the Brazilian Association of
Corrugated Cardboard Producers (ABPO) indicate that the sale of
corrugated cardboard boxes, sheets and accessories totaled 497
thousand tons in 1Q05, up 1.2% from the same period in 2004.

Although a drought in the south of Brazil delayed the harvest of
tobacco crops in that region, Klabin still sold 99 thousand tons
of cardboard products to this industry in 1Q05, i.e. 6% more
than in 1Q04.

The first lot of mangoes grown in Sao Franscisco Valley and
exported to Japan, and the meat exports to Russia were all
packed into special corrugated cardboard boxes manufactured by
Klabin.

The volume of meat, tobacco and fruit produced in the Northeast
for export should grow in the next quarters, creating a
favorable scenario for the Company's packaging product sales.

Net revenue in this business unit totaled R$ 198 million, up 11%
from 1Q04.

BUSINESS UNIT - PACKAGING - INDUSTRIAL MULTIWALL BAGS

Industrial multiwall bag sales amounted to 30 thousand tons in
1Q05, up 7% and 2% from 1Q04 and 4Q04, respectively. Sales to
local customers totaled 22 thousand tons. Highlight in 1Q05 the
civil construction industry, which increased 20% in relation to
1Q04. The agribusiness (seeds) segment remained stable in
comparison with 1Q04. Klabin Argentina sold 6 thousand tons of
industrial multiwall bags, generating a net revenue of R$ 14
million.

Capital Expenditure

In the 1T05, Capex reached R$ 93 million:

            R$ Million                 1Q05

          Reforestation                  8
          Paper Mills                   59
          Conversion                    25
          Others                         1
          Total                         93

- Boards duplication in Monte Alegre mill not included

The coated cardboard expansion project at Angatuba should
increase the plant's installed capacity from 80 thousand to 100
thousand tons/year. A highlight in 1Q05 was the expansion of its
cardboard production capacity from 25 thousand to 60 thousand
tons/year. Following the original schedule, 90% of the equipment
has already been ordered from suppliers. A general downtime is
scheduled for Angatuba in mid September so that this equipment
may be installed and the plant prepared for production as of
early October.

Capital Market

Klabin shares maintained their liquidity and are negotiated on
all the trading sessions of the Sao Paulo Stock Exchange
(Bovespa). In 1Q05, there were 13,200 transactions involving 47
million Klabin shares, resulting in a daily traded volume of R$
3.9 million. Klabin shares are also traded over the counter
(OTC) as Level I ADRs in the U.S. market, under the code KLBAY.
The capital stock of Klabin S.A. is represented by 918.0 million
shares, including 317.0 million common shares and 601.0 million
preferred shares.

DIVIDENDS

A Shareholders' Meeting held on March 21, 2005 authorized the
payment of additional dividends in the amount of R$ 90 million,
more specifically R$ 92.05 per 1,000 common shares and R$ 101.26
per 1,000 preferred shares. Thus, the dividends from the year
2004 totaled R$ 165 million, 38% of its net profit after making
the provisions required by law. The additional dividends will be
distributed to the stockholders on April 8, 2005.

In the Extraordinary General Meeting held on March 21, 2005
authorized the cancellation of 221,829 common shares and 895,216
preferred shares held in treasury until then, without any
attendant reduction in the Company's capital stock.

OUTLOOK

A certain accommodation in production growth was felt in Brazil
in the first quarter, but nothing close to a growth
interruption. Economic outlook for 2005 is promising, hence a
growth in demand is projected in the second half of 2005 for
containerboard and packaging board.

The coated cardboard expansion project at Angatuba (SP) - which
was initiated in January 2005 and is scheduled for completion in
October 2005 - is intended to improve the Company's product mix
by increasing the output of Coated Cardboard and White Top Liner
to 60 thousand tons/year and 40 thousand tons/year,
respectively.

Basic engineering work related to a project designed to double
the capacity of coated cardboard production at Monte Alegre (PR)
is rapidly progressing and it should be completed by July 2005.
The investment project shall be presented to the Board of
Directors in the third quarter of 2005.

With a gross revenue of R$ 3.2 billion in 2004, Klabin stands as
the largest integrated packaging paper manufacturer in Brazil,
with a production capacity of 1.6 million tons per year, and as
a leader in most of its business markets. For strategic
purposes, the Company will focus on the following business
lines: packaging paper and cardboard products, corrugated
cardboard boxes, multiwall bags and wood.

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

CONTACT: Klabin S.A.
         Mr. Ronald Seckelmann
         CFO and IR Director

         Mr. Luiz Marciano Candalaft
         IR Manager
         Phone: (5511) 3046-5847
         E-mail: marciano@klabin.com.br

         Mr. Gustavo Vittorazze Schroden
         IR Analyst
         Phone: (5511) 3046-5934
         E-mail: gvschroden@klabin.com.br



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

CORPORACION GEO: Improved Results Prompts UBS Upgrade
-----------------------------------------------------
UBS Investment Research raised its recommendation on the shares
of Mexico's largest homebuilder, Corporacion Geo SA (GEO.MX), to
"buy" from "neutral" on Tuesday. The move, according to Dow
Jones Newswires, follows the release of Geo's 1Q05 results,
which revealed a 59% increase in net profit to MXN176.4 million
from MXN110.9 million in the comparable period last year.

The shares have fallen sharply from their February high, "and
are consequently trading at valuation multiples that we would
once again consider attractive, especially as this earnings
release would suggest that there might be some upside to our
current estimates," UBS said in a research note Tuesday

Furthermore, the investment bank said it sees continued strength
in the Mexican housing market.

"There is no evidence thus far that the rise in interest rates
has dented mortgage demand or that banks' appetite to deliver
them has faded," UBS said.

To see income statement:
http://bankrupt.com/misc/corporacion_geo.pdf

CONTACTS: CORPORACION GEO, S.A. DE C.V.

  Jorge Perez                       Kenia Vargas / Eduardo Muniz
  Investor Relations Officer        Investor Relations
  Corporacion Geo                   Corporacion Geo
  Ph.  +(52) 55-5480-5071           Ph. +(52) 55-5480-5078
  Fax  +(52) 55-5554-6064           Fax +(52) 55-5554-6064
  jperezr@casasgeo.com              geo_ir@casasgeo.com
  http://www.casasgeo.com          http://www.casasgeo.com


DIRECTV GROUP: Expands Programming With F1 Satellite
----------------------------------------------------
DIRECTV advanced toward its goal of offering local digital and
high-definition channels to every household in America with the
successful launch of Spaceway F1, a DIRECTV satellite capable of
delivering hundreds of HD signals to DIRECTV customers, and the
first of four next-generation satellites that will dramatically
expand DIRECTV's programming capacity in the next two years.

Spaceway F1 is the first of two Ka-band satellites that will
launch this year, enabling DIRECTV to broadcast local HD
channels into several of the nation's largest markets.
Initially, DIRECTV will begin launching digital and HD local
channels in 12 markets this fall allowing customers -- with the
necessary HD reception equipment -- in those markets to receive
popular broadcast network programming in HD.

The Boeing 702 model satellite lifted off from the ocean-based
Odyssey Launch Platform aboard a Sea Launch Zenit-3SL rocket at
12:31:30 a.m. PDT from the equatorial launch site at 154 degrees
West longitude.

The launch of Spaceway F1, and Spaceway F2 in June, marks the
beginning of a historic expansion of DIRECTV's capacity that
will include the launch of two more next-generation satellites,
DIRECTV 10 and DIRECTV 11, in 2007. The four satellites will
provide additional capacity to deliver more than 1,500 local HD
and more than 150 national HD channels and other advanced
programming services to consumers.

"With Spaceway F1's successful launch today, we enter a new era
that will see the most dramatic programming rollout in our
history with plans to offer local digital and HD programming to
every U.S. household," said Chase Carey, president and CEO,
DIRECTV, Inc. "We thank the Boeing and Sea Launch teams, who did
a magnificent job in preparing for and executing a flawless
launch that will ultimately benefit our DIRECTV customers, many
of whom will soon have the ability to enjoy their local
broadcast networks in HD from DIRECTV."

The first group of markets to receive local HD channels via
Spaceway F1 includes New York, Los Angeles, Chicago,
Philadelphia, Boston, San Francisco, Dallas, Washington D.C.,
Atlanta, Detroit, Houston and Tampa. These markets represent
nearly 36 million homes or 32.8 percent of all U.S. TV
households.

Thirty minutes after liftoff, the rocket left the spacecraft in
a geosynchronous transfer orbit with a high point of 21,200
miles (34,128 km) above the equator. Controllers at a ground
station in South Africa have made contact with the satellite and
confirmed that all systems are functioning properly.

In the coming weeks, controllers will maneuver the spacecraft
into a circular orbit; deploy the antennas and solar arrays; and
test operational functions, communications payload and the
propulsion system. DIRECTV expects to begin offering services
from Spaceway F1 from the 102.8 degree West longitude orbital
slot in the fall.

Spaceway F1 is the third DIRECTV satellite to be launched on a
Zenit-3SL launch vehicle. Sea Launch successfully delivered
DIRECTV 1R to orbit in October, 1999, and DIRECTV 7S in May,
2004.

DIRECTV, Inc. is the nation's leading and fastest-growing
digital multichannel television service provider with more than
13.9 million customers. DIRECTV and the Cyclone Design logo are
registered trademarks of DIRECTV, Inc. DIRECTV (NYSE:DTV) is a
world-leading provider of digital multichannel television
entertainment services. DIRECTV is 34 percent owned by News
Corporation.

CONTACT: DIRECTV, Inc.
         Mr. Robert Mercer
         Phone: 310-726-4683


GRUPO MEXICO: SPCC Names New Executive Officers
-----------------------------------------------
Southern Peru Copper Corporation (NYSE and LSE: PCU) (SPCC)
announced Monday that on April 12, 2005, the Board of Directors
of SPCC elected the following officers:

- Mr. German Larrea Mota-Velasco - Chairman of the Board

- Mr. Oscar Gonzalez Rocha - President and Chief Executive
Officer

- Mr. Xavier Garcia de Quevedo Topete - Executive Vice President
and Chief Operating Officer

- Mr. J. Eduardo Gonzalez F. - Vice President, Finance and Chief
Financial Officer

- Mr. Remigio Martinez - Vice President, Exploration

- Mr. Vidal Muhech - Vice President, Projects

- Mr. Armando Ortega G. - Vice President, Legal, General
Counsel, and Secretary

- Mr. Mario Vinageras - Vice President, Commercial

- Mr. Jose N. Chirinos Fano - Comptroller

Southern Peru Copper Corporation is one of Peru's largest
companies and one of the ten largest copper producers worldwide.
The ownership of SPCC's shares, either directly or through
subsidiaries as of April 1st, 2005, is as follows: Grupo Mexico
(75.1%), Cerro Trading Company (7.7%), Phelps Dodge (7.6%) and
other shareholders (9.6%).

CONTACT: GRUPO MEXICO
         Av. Baja California No. 200
         Colonia Roma Sur
         06760 Mexico, D.F.
         Phone: 52 (55) 5080-0050


MERIDIAN AUTOMOTIVE: LatAm Ops Excluded From Bankruptcy Filing
--------------------------------------------------------------
Meridian Automotive Systems, Inc. announced Tuesday that it has
filed to reorganize under Chapter 11 of the U.S. Bankruptcy
Code. The Company and its eight domestic subsidiaries filed
their voluntary petitions for relief in the United States
Bankruptcy Court for the District of Delaware.

Meridian said that it elected to file for reorganization in
order to restructure its debt, which has become unsustainable in
the current market environment. Meridian said that it needs to
restructure its balance sheet in order to face the challenges
posed by increases in steel and resin prices and the termination
of the early payment programs by certain original equipment
manufacturers (OEM). These factors, combined with reduced
production by OEMs, have had an adverse impact on Meridian's
liquidity position in recent months.

Thomas Divird, Meridian's Chief Executive Officer, said,
"Meridian has very strong operations, great relationships with a
diversified customer base and high quality products. However, we
need to reduce our debt and simplify our capital structure in
order to remain competitive under current market conditions.
After considering many options, we determined that Chapter 11
provides Meridian with the most prudent approach to restructure
our balance sheet while maintaining normal operations. We expect
to emerge from this process with a more appropriate capital
structure that will allow us to be stronger and more efficient
in the future."

In conjunction with its filing, Meridian has secured commitments
for up to $375 million in debtor-in-possession financing from
JPMorgan, subject to court approval. This financing will be used
to refinance Meridian's current First Lien facilities and
provide sufficient liquidity to continue normal operations.

Richard E. Newsted, Meridian's President, said, "Combined with
our normal cash flow, the DIP financing that we have secured
gives substantial assurance that we will be able to operate
normally and continue to meet commitments to our customers
throughout this process."

Meridian has requested, and expects to receive, court approval
to continue to pay employee salaries, wages and benefits in the
ordinary course. Meridian will pay suppliers for the post-
petition delivery of goods and services in the ordinary course.

Meridian's operations in Mexico, Canada and Brazil were not
included in the filing.

The Company has established a Supplier Call Center to answer
questions from its suppliers.  The toll-free phone number is
866-845-1979.

Meridian has retained the law firm of Sidley Austin Brown & Wood
LLP as its restructuring counsel.  FTI Consulting is acting as
the Company's financial advisor.

CONTACT: Mr. Doug Morris
         Gavin Anderson & Co.
         Phone: 212-515-1964


UNEFON: Rising Expenses Cut Profits in Half
-------------------------------------------
Mobile operator Unefon saw its net profit plunge 51% to US$8
million in the 1Q05 compared to the profit in 1Q04, reports
Business News Americas. In its latest earnings statement, the
Company said the decrease in profit is due to a 24% increase in
depreciation and amortization expenses, which were US$17 million
last quarter.

Revenues during 1Q05 remained flat at US$98 million despite a
28% increase in peso revenues from handset sales, which grew to
represent 15% of total revenues from 13% in 1Q04.

EBITDA was down 9% at US$26 million, the EBITDA margin slipping
to 26% from 29% a year before.

Just recently, the Unefon board decided to delist the mobile
operator's shares from the Mexican stock market BMV citing the
stock's poor liquidity. The Company will propose the move to the
shareholders at a meeting scheduled for April 29. If approved,
it will launch an offer to buy back the shares held by the
public.

Unefon, which is 46.5%-owned by the country's No. 2 broadcaster
TV Azteca (NYSE: TZA), has faced stiff competition from market
leader Telcel, owned by America Movil (NYSE: AMX), and the
market has become even more competitive since Spain's Telefonica
(NYSE: TEM) arrived, now branded Movistar.

CONTACT: Unefon Press Relations
         Mr. Tristan Canales
         E-mail: tcanales@tvazteca.com.mx
         Phone: (011-5255) 3099 5786

         Unefon Investor Relations
         Mr. Alan Infante
         E-mail: ainfante@unefon.com.mx
         Phone: (011-5255) 8582 5134

         VeriSign Media Relations
         Mr. Leslie Rubin
         E-mail: lrubin@verisign.com
         Phone: 650-426-5363

         VeriSign Investor Relations
         Mr. Tom McCallum
         E-mail: tmccallum@verisign.com
         Phone: 650-426-3744


VITRO: Slides Into Red With $23M Net Loss in 1Q05
-------------------------------------------------
Vitro S.A. de C.V. (BMV: VITROA; NYSE: VTO) one of the world's
largest producers and distributors of glass products, announced
Tuesday 1Q'05 unaudited results. Consolidated sales remained
unchanged YoY.

Excluding Vitro Fibras (VIFISA) and Vitro American National Can
(VANCAN), divested in March and September 2004, respectively,
consolidated sales rose 3.8 percent. Consolidated EBITDA fell
YoY 12 percent with margins down 1.8 percentage points to 13.1
percent. On a comparable basis, consolidated EBITDA declined 4.7
percent. Comparable EBITDA rose 8.0 percent at Glass Containers
and fell 28.3 percent at Flat Glass and 23.8 percent at
Glassware.

CFO's STATEMENT

Alvaro Rodriguez, Chief Financial Officer, noted: "Results are
in line with expectations for the first quarter which is always
the weakest of the year. For the third consecutive quarter, on a
comparable basis, all business units reported YoY sales growth.
Glass Containers turned in an excellent performance, with sales
up 6.4 percent. Glassware sales were up 6.7 percent and Flat
Glass rose 0.9 percent."

Mr. Rodriguez commented, "During the quarter, we closed a five-
year US$150 million senior secured term loan at Vitro Envases
Norteamerica, our Glass Containers business unit. The net
proceeds from this loan, together with the US$80 million from
the reopening of the VENA bond on February 4, 2005 were used to
pay down other debt. With these transactions we completed the
refinancing of this business unit. This means that we do not
have any large maturities for the next five years at VENA. In
addition, VENA's cost of debt fell by more than 1 percentage
point and average debt life rose to 5.5 years from 3.9 years. At
the same time, VENA's debt to the holding company level fell to
US$75 million, from US$221 million on March 31, 2004.

"On March 31, 2005, we issued a securitization program, first of
its kind in Mexico to replace a former factoring program at
VENA. The program is composed of Ps.550 million in "Certificados
Bursatiles Preferentes", issued in Mexico and US$19 million of
"Certificados Subordinados" in the U.S. We are pleased to say
that the preferred instruments were three times oversubscribed.
This transaction was rated mxAAA by Standard & Poor's and Aaamx
by Moody's."

"At a consolidated level, all this extends life of debt to 4.3
years from 3.8 years."

Mr. Rodriguez concluded, "On April 1, 2005 we sold our 100%
interest in Plasticos Bosco, S.A. de C.V. This, divestiture,
together with the other three completed over the last 18 months,
finalizes our strategy of focusing on our core glass business
units. Vitro today is a pure glass company operating in
geographically diversified markets, selectively pursuing a
unique position as a niche market leader, producing quality
products for a diversified client base and plans to continue
building our market position in the glass industry.

FINANCIAL RESULTS

Sales

Consolidated net sales for 1Q'05 remained flat YoY and increased
0.5 percent for the last twelve months. Flat Glass sales for the
quarter declined YoY by 3.5 percent, while Glass Containers and
Glassware increased 2.4 percent and 6.7 percent, respectively
over the same time period.

Domestic and Export sales for the quarter decreased 4.8 percent
and 1.3 percent YoY, respectively. Sales by foreign subsidiaries
increased 9.1 percent during the same period.

On a comparable basis, excluding Vitro Fibras, S.A. de C.V.
(VIFISA) and Vitro American National Can, S.A. de C.V. (VANCAN),
which were divested in March and September 2004, respectively,
consolidated net sales for the quarter rose YoY by 3.8 percent.

At the business unit level, sales at Flat Glass, excluding
VIFISA, increased 0.9 percent and sales at Glass Containers,
excluding VANCAN, rose 6.4 percent YoY.

EBIT and EBITDA

Consolidated EBIT for the quarter decreased 25.5 percent YoY to
US$21 million. The EBIT margin declined by 1.3 percentage points
to 3.9 percent. On a comparable basis, excluding VIFISA and
VANCAN, consolidated EBIT fell 11.5 percent. On a LTM basis, the
EBIT margin decreased by 1.5 percentage points. EBIT margins
continue to be negatively impacted by the increase in the cost
of energy, packaging materials and freight. In addition, the
repair of Glassware's largest furnace during this quarter
reduced capacity utilization and fixed cost absorption at this
business unit, decreasing EBIT margins. Improved production
optimization levels and capacity utilization at Glass Containers
partially offset the above-mentioned factors.

EBIT for the quarter at Flat Glass declined 74.8 percent YoY,
while at Glass Containers increased 18.1 percent and remained
flat at Glassware. Excluding VIFISA, Flat Glass EBIT fell 66.7
percent. Excluding VANCAN, Glass Containers EBIT for the same
period rose 21.6 percent.

Consolidated EBITDA for the quarter was US$72 million, a YoY
decrease of 12.0 percent. The EBITDA margin declined 1.8
percentage points YoY to 13.1 percent. On a comparable basis,
excluding VIFISA and VANCAN, consolidated EBITDA for the quarter
declined 4.7 percent YoY, from US$75 million to US$72 million.

On a LTM basis, EBITDA decreased 5.8 percent to US$344 million,
from US$365 million. On a comparable basis, excluding VIFISA,
VANCAN and Envases Cuautitlan, S.A. de C.V. (ECSA), which was
divested in September 2003, EBITDA increased 1.0 percent YoY,
from US$337 to US$340. The improvement in EBITDA from continuing
operations was achieved despite higher energy and packaging
material prices as well as higher distribution costs.

The Pet Coke project, as an alternative source of energy
continues to produce savings that partially offset high energy
prices and reduce, to certain degree, Vitro's dependence on
natural gas. Savings at the EBITDA level for the quarter totaled
approximately US$1.5 million, compared with US$0.4 million for
the same quarter last year. During the quarter, EBITDA decreased
39.4 percent at Flat Glass YoY, rose 5.4 percent at Glass
Containers and fell 23.8 percent at Glassware Glass Containers,
excluding VANCAN, was the major EBITDA contributor through its 8
percent YoY increase for the quarter. During the same period,
Flat Glass, excluding VIFISA, declined 28.3 percent.

Consolidated Financing Cost

Consolidated financing cost increased to US$48 million in 1Q'05,
compared with US$12 million for the same quarter in 2004 due in
large part to a non-cash monetary position gain of US$8 million
compared with US$20 million in the same quarter of last year as
a result of an inflation rate in Mexico of less than half in
1Q'05 vs.1Q'04 In addition, interest expense increased to US$45
million compared with US$34 million in the same quarter last
year. Other financial expenses increased mainly due to expenses
related to debt refinancing at VENA.

Taxes

Accumulated accrued income tax was flat in 1Q'05 compared with
1Q'04. Deferred income tax for the quarter and for LTM 2005
decreased compared with the same periods last year. This was due
to an income tax rate reduction, approved by the Mexican tax
authorities, to 30 percent in 2005, 29 percent in 2006 and 28
percent in 2007, and beyond.

Consolidated Net Loss

During the quarter, the Company recorded a consolidated net loss
of US$23 million, compared with a consolidated net gain of US$33
million in 1Q'04. This variation is due to US$32 million
extraordinary income received in 1Q'04 from the sale of VIFISA.

Additionally in 1Q'05 the Company had higher financing costs, as
a result of a lower non-cash monetary position gain and higher
interest expense. Lower deferred taxes during 1Q'05 partially
offset this decline.

Capital Expenditures (CAPEX)

Capital expenditures for the quarter totaled US$22 million,
compared with US$31 million in 1Q'04. Flat Glass accounted for
43 percent or US$9 million, mainly invested in the repair of the
VF1 furnace. Glass Containers accounted for 36 percent, or US$8
million, used primarily for maintenance purposes. Glassware
invested US$4 million during 1Q'05, mainly for the repair of the
M1 furnace.

Consolidated Financial Position

Consolidated gross debt as of March 31, 2005 totaled US$1,495
million, a QoQ decrease of US$12 million. Net debt, which
considers cash and cash equivalents as well as cash
collateralizing debt accounted for in other long term assets,
increased QoQ by US$57 million to US$1,284, mainly as a result
of working capital needs during the quarter. An example of these
needs is that as of March 31st VENA still had approximately
US$26 million of account receivable not yet discounted in order
to complete the new VENA securitization program described below.
On a YoY comparison net debt increased US$36 million.

As of 1Q'05, the Company had a cash balance of US$211 million,
of which US$185 million was recorded as cash and cash
equivalents and US$26 million was classified as other long term
assets. As of March 31, 2005, 21 percent of this cash balance
was restricted. Restricted cash includes cash collateralizing
debt.

On March 31, 2005, the Company announced that its subsidiary
VENA closed through the "Bolsa Mexicana de Valores" the issuance
of Ps. $550 million in "Certificados Bursatiles Preferentes" at
an interest rate of TIIE (Tasa de Interes Interbancaria de
Equilibrio) plus 120 basis points. VENA also issued
"Certificados Subordinados" for US$19 million in the United
States. The "Certificados" were issued through a trust
established for this securitization. Interest and principal on
the debt from both "Certificados" are payable from receivables
to be originated by three subsidiaries of VENA. The demand for
the preferred financial instruments resulted in the issue being
2.9 times oversubscribed, demonstrating the excellent access
that the Company has in the capital markets in Mexico and
abroad. This transaction allows VENA to increase liquidity and
it gives access to a five year committed line of credit. Since
the transaction replaces a former factoring program at VENA, it
will not increase the company's debt. The transaction received a
rating of mxAAA from Standard & Poor's and of Aaamx from
Moody's.

On February 24, 2005 the Company closed a US$150 million senior
secured term loan at VENA. The facility is secured, on a pari
passu basis with the existing Notes and has a maturity of 5
years with a spread of 625 basis points over LIBOR. The net
proceeds from this loan were used to pay down the outstanding
amount of the original US$230 million loan agreement at VENA
obtained on September 24, 2004.

On February 4, 2005 VENA issued US$80 million aggregate
principal amount senior secured notes due 2011 (the "Notes").
The Notes constitute a further issuance of, and form a single
series and are fully fungible with, the 10.75 percent Senior
Secured Guaranteed Notes due 2011 issued on July 23, 2004, in
the aggregate principal amount of US$170 million. VENA used the
proceeds of the US$80 million issue to repay a portion of the
above mentioned US$230 million senior secured loan.

As of March 31, 2005 the Company's average life of debt
increased by 0.5 years, to 4.3 years from 3.8 years. VENA's
average life of debt in 1Q'05 increased 1.6 years to 5.5 from
3.9 years in 4Q'04.

Debt Profile

- The Company's average life of debt as of 1Q'05 was 4.3 years
compared with 3.9 years for 1Q'04

- Short term debt as of March 31, 2005 declined by US$87 million
to 23 percent of total debt from 31 percent as of March 31,
2004. These amounts include current maturities of long-term
debt.

- Of total short-term debt, 31 percent of maturities are at the
Holding Co. level.

- Revolving short-term debt, including trade related, accounted
for 28 percent of total short-term debt. This type of debt is
usually renewed within periods of 28 to 180 days.

- Current maturities of long term debt increased by 17 percent,
or US$17 million, to US$115 million from US$98 as of December
31, 2004.

- Short Term Market debt is mostly Euro Commercial Paper and
"Certificados Bursatiles" that the Company uses on a regular
basis to finance short-term needs and accounts for 31 percent of
total short-term debt.

- Approximately 44 percent of debt maturities due in 2006 are at
the operating subsidiary level and are principally related to
syndicated facilities.

- Market maturities during 2006 include medium-term notes
denominated in UDI's. Maturities for 2007 include the Senior
Notes at the Holding Co. level.

- Market maturities from 2008, 2009 and thereafter, include the
Senior Notes due 2011 at VENA, the 2010 Secured Term Loan at
VENA, long-term "Certificados Bursatiles", a Private Placement
and the Senior Notes due 2013 at the Holding Co. level.

Cash Flow

Net free cash flow for the quarter decreased to negative US$43
million from negative US$13 during 1Q'04. This was principally
the result of higher interest expense in 1Q'05 due to higher
interest rates, expenses related to debt refinancing at VENA and
higher gross debt levels, as well as an increase in cash taxes
paid during the quarter. Lower CAPEX during 1Q'05 partially
compensated for the above-mentioned factors.

KEY DEVELOPMENTS

Plasticos Bosco Divestiture

On April 1, 2005, the Company completed the sale of its 100
percent interest in Plasticos Bosco, S.A. de C.V.("Plasticos
Bosco"). This practically completes the divestiture of all non-
glass related businesses. Plasticos Bosco, located south of
Mexico City, was acquired by Vitro in 1981 and engaged in the
manufacture and commercialization of disposable tableware.

Vena Securitization Program

On March 31, 2005, the Company announced that its subsidiary
Vitro Envases Norteamerica, S.A. de C.V. ("VENA"), Vitro's glass
containers business unit, closed through the "Bolsa Mexicana de
Valores" the issuance of Ps. $550 million in "Certificados
Bursatiles Preferentes" at an interest rate of TIIE (Tasa de
Interes Interbancaria de Equilibrio) plus 120 basis points. VENA
also issued "Certificados Subordinados" for US$19 million in the
U.S. The "Certificados" were issued through a trust established
for this securitization. Interest and principal on the debt from
both "Certificados" are payable from receivables to be
originated by three subsidiaries of VENA.

The VENA subsidiaries that will be assigning receivables to the
trust are: Compania Vidriera, S.A. de C.V. ("COVISA"), which
conducts all of VENA's glass container operations in Mexico,
Industria del Alcali, S.A. de C.V. ("Alcali") which is engaged
in the manufacturing of soda ash, sodium bicarbonate, calcium
chloride and salt, and Comercializadora Alcali, S. de R.L. de
C.V. ("Comercializadora") which markets Alcali products.

The demand for the preferred financial instruments resulted in
the issue being oversubscribed 2.9 times, demonstrating the
excellent access that the Company has in the capital markets in
Mexico and abroad. This transaction allows VENA to increase
liquidity and provides access to a five year committed line of
credit. This transaction replaces a former factoring program at
VENA, and as such will not increase the company's debt. The
issue received a rating of mxAAA from Standard & Poor's and of
Aaamx from Moody's.

VENA Senior Secured Term Loan at VENA

On February 24, 2005 the Company closed a US$150 million senior
secured term loan at VENA. The facility is secured, on a pari
passu basis with the existing Notes and has a maturity of 5
years with a spread of 625 basis points over LIBOR. The net
proceeds from this loan were used to pay down the outstanding
amount of the original US$230 million loan agreement at VENA
obtained on September 24, 2004.

Reopening of the VENA Senior Notes due 2011

On February 4, 2005 the Company announced that its subsidiary
VENA, successfully issued US$80 million aggregate principal
amount senior secured notes due 2011 (the "Notes"). The Notes
were issued at a yield of 10.26 percent. This yield was 174
basis points lower than that of the same notes issued in the
summer of 2004. The Notes constitute a further issuance of, and
form a single series and are fully fungible with, the 10.75
percent Senior Secured Guaranteed Notes due 2011 that were
issued on July 23, 2004, in the aggregate principal amount of
US$170 million. VENA used the proceeds of the US$80 million
issue to repay a portion of the above mentioned US$230 million
senior secured loan.

Management Change at Flat Glass

On April 8, 2005 the Company announced that Fernando Flores, the
current CEO of Vitro's Flat Glass Unit, will retire. Jose
Domene, Vitro's Chief Operating Officer, will head the Flat
Glass Business Unit as Interim CEO, while maintaining his
current responsibilities. Fernando Flores will continue to
support Jose Domene as a consultant for a six-month period to
assure continuity.


FLAT GLASS
(48 percent of LTM Consolidated Sales)

Sales

Flat Glass sales decreased 3.5 percent YoY to US$265 million
from US$274 million. On a comparable basis, excluding VIFISA
which was divested in March 2004, sales increased by 0.9
percent. Domestic sales decreased 29.5 percent YoY, mainly as a
result of lower construction-related volumes. Prices in the
construction segment continue to reflect stability as they
remained flat compared to the fourth quarter of last year.

Automotive sales rose 3 percent YoY, driven by the new OEM
platforms launched earlier this year. These new platforms
improved the product mix and prices at the OEM segment. Auto
Glass Replacement ("AGR") domestic sales fell 9 percent as a
result of a reduction in volume, but compensated with a mix and
price. AGR export sales remained flat YoY.

Sales from foreign subsidiaries rose 10 percent YoY to US$139
million from US$126 million. Sales at the Spanish subsidiary
increased 18.4 percent YoY driven by new recently won monumental
construction contracts. In addition, sales at Vitro America rose
by 2.7 percent, compared with 1Q'04 and during the same period,
Vitro Colombia's sales rose 29 percent as a result of increased
demand in Central and South America.

EBIT & EBITDA

EBIT decreased YoY by 74.8 percent to US$4 million from US$16
million, while EBITDA fell 39.4 percent to US$20 million. During
the same period both EBIT and EBITDA margins decreased 4.4
percentage points, to 1.5 and 7.5 percent, respectively. On a
comparable basis, excluding VIFISA, EBIT and EBITDA decreased
YoY by 66.7 and 28.3 percent, respectively.

EBITDA was negatively affected by lower sales from the
construction business, higher energy, raw material and freight
costs. Strong EBIT and EBITDA generation from Vitro America and
the Spanish and Colombian subsidiaries contributed to partially
offset the reduction in EBIT and EBITDA for the business unit.

GLASS CONTAINERS
(40 percent of LTM Consolidated Sales)

Sales

Sales increased 2.4 percent YoY to US$220 million from US$215
million. On a comparable basis, excluding VANCAN which was
divested on September 2004, sales rose 6.4 percent. The main
drivers behind the increase in the domestic sales were higher
beer volume, improved product mix in the Wine & Liquor Segment
and increased demand from the Fragrance Sector (part of
Cosmetics, Fragrances & Toiletries Segment "CFT").

Beer volume rose 110 percent YoY as a result of higher export
demand due to early preparation for the beginning of summer.
Despite a 1 percent decrease in volume in the Wine & Liquor
Segment, sales rose by 23 percent because of a better product
mix. The positive trend at the Fragrance Segment continued
during this quarter, with sales up YoY by 18 percent. These
factors more than offset the decrease in sales at the Soft Drink
Segment.

The 3.7 percent YoY increase in exports was principally due to
the 47 percent rise in sales at the CFT Segment in the US, with
both higher volumes and better product mix. The Company
continues to benefit from its position as a niche player,
increasing its exports through Vitro Packaging and gaining
market share in the US. In addition, every export segment except
Industrial, which represents less tan 1 percent of exports,
recorded sale increases during this quarter, compared with the
same period last year. Sales from Glass Containers' foreign
subsidiaries rose 4.8 percent YoY, as a result of increased
demand in Central America.

EBIT and EBITDA

EBIT for the quarter increased 18.1 percent YoY to US$17 million
from US$15 million. EBITDA for the same period rose 5.4 percent
to US$44 million from US$41 during 1Q'04. On a comparable basis,
excluding VANCAN, EBIT and EBITDA increased 21.6 and 8 percent,
respectively. EBIT and EBITDA margins rose YoY 1.0 and 0.6
percentage points, respectively.

EBITDA during this quarter benefited from higher sales, improved
production efficiencies and fixed costs absorption, which more
than offset increased energy, packaging costs and freight costs.
On a comparable basis, cost of sales, as a percentage of total
sales, decreased YoY by 1.9 percentage points. EBITDA from
Mexican operations, which is VENA's core business and represents
approximately 80 percent of total EBITDA rose 21.3 percent YoY.

GLASSWARE
(11 percent of LTM Consolidated Sales)

Sales

Sales rose 6.7 percent YoY to US$56 million from US$52 million.
This increase was primarily driven by a 9.5 percent gain in
domestic sales. Sales benefited from a better product mix during
this quarter compared with 1Q'04. Despite a 7 percent YoY volume
decrease for the quarter, total dollar Glassware sales rose as a
result of an improved sales mix.

EBIT and EBITDA

EBIT and EBITDA for 1Q'05 was US$(1) million and US$5 million
respectively. During the quarter, EBIT and EBITDA margins
declined YoY by 1.1 and 3.5 percentage points respectively. The
division's largest furnace was repaired during this quarter and
remained inactive for approximately 60 days, which caused lower
capacity utilization and fixed cost absorption, which negatively
impacted EBIT and EBITDA margins. The EBITDA impact of this was
approximately US$1.4 million for 1Q'05. Higher packaging and
energy costs negatively affected EBIT and EBITDA for the
quarter. EBITDA was also negatively impacted by approximately
US$0.4 million due to the strong peso. This negatively affected
results of dollar denominated exports (32 percent of our sales)
and makes imports more competitive.

About Vitro

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses. Vitro also produces
raw materials and equipment and capital goods for industrial
use.

Founded in 1909 in Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.

Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

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

CONTACT: Investor Relations
         Mr. Adrian Meouchi (ameouchi@vitro.com)
         Ms. Leticia Vargas (lvargasv@vitro.com)
         Vitro S.A. de C.V.
         Phone: + (52) 81-8863-1350 / 1219

         Media Relations (achico@vitro.com)
         Mr. Albert Chico
         Vitro, S. A. de C.V.
         Phone: + (52) 81-8863-1335

         Web site at: http://www.vitro.com

         Breakstone & Ruth International
         U.S. agency
         Mr. Alex Fudukidis (afudukidis@breakstoneruth.com)
         Ms. Susan Borinelli
        (Sborinelli@breakstoneruth.com)
         Phone: (646) 536-7012 / 7018



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

COPACO: Earmarks $7M to Launch New Mobile Service
-------------------------------------------------
State-run fixed line operator Copaco will invest US$7 million to
launch its new mobile service, reports Business News Americas.

The new service, which will be offered at prices lower than
those offered by Copaco's rivals, is expected to bring in
140,000 GSM subscribers to Copaco in addition to the Company's
nearly 300,000 fixed line subscribers.

Meanwhile, Copaco also plans to invest up to US$3.5 million to
deploy a national broadband network, which would provide
Internet connectivity for ISPs. According to a La Nacion report,
Copaco would charge US$1,500 per month to ISPs who are now
paying nearly US$2,000.

Copaco recently paid US$40 million in outstanding
interconnection fees to local mobile operators and expects to
pay the remaining US$10 million by June.



=======
P E R U
=======

PAN AMERICAN SILVER: Begins Production of New Silver Bullion
------------------------------------------------------------
Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is pleased to
announce that it has begun producing a new line of silver
bullion products for its shareholders and other silver
investors. The products comprise .999 pure silver coins and bars
in one, five and ten ounce weights, featuring Pan American's
trademark "silver hammer" and using silver supplied from Pan
American's La Colorada mine in Mexico, one of the world's purest
silver mines today.

The Pan American silver products will be minted at and
exclusively available through Washington State-based Northwest
Territorial Mint, one of the largest private mints in the United
States. They will sell for $0.50 to $0.70 per ounce above the
spot price of silver on the date of order, depending on volume,
which is one of the lowest mark-ups for any silver coin or bar
products available anywhere.

Pan American Silver's Chairman, Ross Beaty, commented: "Silver
is money, as it has been for millennia. These pure silver
products will enable individuals and institutions to easily
purchase Pan American's beautiful silver coins and bars for long
term investment and enjoyment. Silver has always been important
as a hedge against inflation and devaluation of paper
currencies, and these Pan American "silver hammers" will, I
hope, become industry-standard bullion products for silver
investors for a long time to come. Silver is a wonderful and
immensely useful metal and I am very pleased that we can provide
our shareholders and other investors with an easy, inexpensive
way to purchase silver directly from our purest silver mine."

CONTACT: Ms. Brenda Radies
         VP Corporate Relations
         Pan American Silver Corp
         Phone: (604) 684-1175.



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

R&G FINANCIAL: To Restate Earnings for Years 2003, 2004
-------------------------------------------------------
R&G Financial Corporation (NYSE: RGF) ("R&G Financial")
announced Monday that after consultation with its independent
accountants and firms with experience in valuation issues, the
Company has determined to review the independent market
valuations used in valuing residual interests retained in
securitization transactions of the Company. The Company stated
that it is revising its valuation methodology used in valuing
these interests that are presented in the Company's audited
consolidated financial statements. The Company reached this
determination after discussions with its independent
accountants, which the Company initiated on Tuesday, April 19th
and culminated on Friday, April 22nd.

As of December 31, 2004, the Company had reported in its
recently-issued audited consolidated financial statements an
aggregate of $190 million of residual interests retained. Under
the methodology used to prepare the audited consolidated
financial statements, the Company had taken impairment charges
on its residual interests amounting to $20.3 million and $11.90
million during the third and fourth quarters of 2004,
respectively. An additional impairment charge for the first
quarter of 2005 of $30.1 million had been estimated by the
Company under the methodology it had been using.

The Company is considering alternative valuation methodologies.
Depending on the valuation methodology used, the Company has
preliminarily estimated that the fair value of its residual
interests would be reduced as of December 31, 2004 by an amount
equal to between approximately $90 million to $150 million ($55
million and $90 million after taxes, respectively). Any such
reduction would be a non-cash charge to the Company's
consolidated statement of operations. The Company has not yet
determined how such net impact will be distributed among the
affected periods.

The Company has concluded that previously filed interim and
audited financial statements for the periods from January 1,
2003 through December 31, 2004, would be materially affected as
a result of the revision in the valuation methodologies being
contemplated, and therefore, the  financial statements for the
periods included therein should be restated. The Company's
independent accountants have not yet performed audit procedures
on any revised estimates.

As a result of these events, the Company will delay the release
of its earnings for the first quarter of 2005. The Company
intends to release its unaudited earnings for the first quarter
of 2005 and the restated results for prior periods as soon as
practicable. As part of this process, the Company will be
reviewing the management report on internal control over
financial reporting for 2004. The Company has also retained
Sullivan & Cromwell LLP as its special counsel to advise the
Company on legal issues arising from the valuation of its
residual interests retained on securitization transactions.

Assuming a reduction in the value of its residual interests of
$150 million, the Company will remain a well-capitalized
institution in accordance with federal banking regulatory
standards, with a leverage ratio as of December 31, 2004 of
approximately 10.44%, compared to the previously reported
11.29%. Its banking subsidiaries are also expected to remain
well-capitalized.

In response to this issue, the Company does not believe it is
required to change fundamentally the way in which it conducts
its banking business. The Company intends to continue focusing
on growing its banking franchise. However, the Company will
reduce, and possibly eliminate, sales of loans that generate
floating-rate residual interests in securitizations.

R&G Financial, currently in its 33  rd  year of operations, is
a diversified financial holding company with operations in
Puerto Rico and the United States, providing banking, mortgage
banking, investments, consumer finance and insurance through its
wholly-owned subsidiaries R-G Premier Bank of Puerto Rico, a
Puerto Rico-chartered commercial bank, R-G Crown Bank, its
Florida-based savings bank, R&G Mortgage Corp., Puerto Rico's
second largest mortgage banker, Mortgage Store of Puerto Rico,
Inc., a subsidiary of R&G Mortgage, Continental Capital Corp.,
R-G Crown's New York and North Carolina based mortgage banking
subsidiary, R-G Investments Corporation, a Puerto Rico broker-
dealer, and Home and Property Insurance Corporation, a Puerto
Rico insurance agency. As of December 31, 2004, R&G Financial
had previously reported consolidated assets of $10.2 billion and
consolidated stockholders' equity of $855.6 million.

CONTACT:  R & G Financial Corp.
          280 Jesus T. Pinero Ave.
          Hato Rey
          San Juan, 00918
          Puerto Rico
          Website: http://www.rgonline.com
          Phone: 787-758-2424

          Officers:  Victor J. Galan, Pres. & CEO
                     Joseph R. Sandoval, CFO
                     Enrique Umpierre-Suarez, Sec't.


R&G FINANCIAL: Valuation Revisions Prompt Rating Watch Negative
---------------------------------------------------------------
Fitch Ratings has placed the ratings of R&G Financial
Corporation (RGF) and its subsidiaries on Rating Watch Negative
following the announcement that the company intends to revise
its methodology in valuing residual interests retained in
securitization transactions. This will result in the company
restating earnings for 2003 and 2004 and will produce a delay in
the release of first-quarter 2005 results. A list of ratings is
provided at the end of this release.

The rating action is in response to RGF's announcement that it
plans to change the methodology used to value its residual
interests (interest-only securities [IOs]) retained through
securitization activity. As of Dec. 31, 2004, RGF carried IOs on
its balance sheet at a fair value of $190 million. The company
anticipates this asset will be written-down by approximately
$90-$150 million, or between $55 and $95 million after tax. On a
pro forma basis, a $95 million after-tax charge would reduce
equity to total assets to approximately 7.50% from the reported
8.39%. Capitalization, after the charge, remains adequate for
the current rating category. Fitch requires a more significant
level of capital against RGF's higher risk assets, such as
capitalized mortgage servicing rights and IOs. The company has
stated that it is conducting a comprehensive review that will
cover all the assumptions and processes used to value its IOs to
calculate the gains on sale. The review will also test and
evaluate the effectiveness of internal controls pertaining to
financial reporting.

The Rating Watch Negative will be evaluated following Fitch's
review with management on future valuation methodology, risk
management improvements, funding and liquidity in conjunction
with the prospective changes to the business model. Fitch
expects that the restatement process will be completed within a
time frame that will allow RGF to resume normal financial
reporting by the end of June 2005. The restated financials will
allow Fitch to fully assess the actual write-down and resulting
capital position. Fitch does not believe the negative financial
news should significantly hinder retail business flow of RGF's
residential mortgage operation.

Ratings placed on Rating Watch Negative by Fitch

R&G Financial Corporation:

--Long-term Senior Unsecured 'BBB';

--Preferred stock 'BB+';

--Individual 'B/C'.

R&G Mortgage:

--Long-term senior unsecured 'BBB'.

R-G Premier Bank:

--Long-term deposit obligations 'BBB+;

--Long-term non-deposit obligations 'BBB';

--Short-term deposit obligations 'F2'.

R-G Crown Bank:

--Long-term deposit obligations 'BBB+';

--Long-term non-deposit obligations 'BBB';

--Individual 'B/C';

--Short-term deposit obligations 'F2'.

Ratings affirmed

R&G Financial Corporation

R-G Crown Bank:

--Support '5'.

R-G Premier Bank

R-G Crown Bank:

--Short-term non-deposit obligations 'F3'.

CONTACT: Peter Shimkus +1-312-368-2063, Chicago
         James E. Moss +1-312-368-3213, Chicago

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



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

CNV: Government Gets Clearance to Seize Remaining Assets
--------------------------------------------------------
Lawmakers have declared Constructora Nacional de Valvulas (CNV),
an industrial valve company that went bankrupt in April 2002,
"of public interest." According to Dow Jones Newswires, the
declaration paves the way for the federal government to
expropriate the Company's remaining assets.

In their decision, members of Venezuela's National Assembly said
CVN's closure hurt those who purchased its products and left
employees without jobs.

In recent weeks, workers, who claimed they have not received
their salaries for more than two years, have reportedly taken
over the factory based in Los Teques, a city 30 kilometers
southwest of Caracas, Venezuela's capital.

The workers have reportedly set up a support committee and asked
for economic aid from national and international unions.


PDVSA: Commences Talks to Replace 32 Existing Oil Contracts
-----------------------------------------------------------
State oil firm PDVSA is now negotiating with foreign companies
to convert 32 operating agreements into joint venture
partnerships, under which the Company would hold a minimum stake
of 51%, reports Business News Americas.

Energy and oil minister Rafael Ramirez recently ordered the
conversion of the 32 existing agreements, saying they are a drag
on the Company's finances. The 32 contracts reportedly caused
PdVSA US$258 million in losses last year.

Also, Venezuela's tax office accused the companies with oil
operating agreements of evading some US$2 billion in taxes since
2000.

"All of the companies that operate the agreements are
negotiating. Now we will have a healthy process, we are going to
put the accounts in order, and [the companies] will pay their
taxes," Ramirez said.

Mr. Ramirez, who is also president of PDVSA, gave companies six
months to migrate to the new 25-year JVs before their contracts
are terminated. He warned earlier that if oil companies decide
to withdraw from Venezuela rather than accept new conditions
being imposed by the government, PDVSA will invite other private
companies to operate the fields rather than operate them itself.

PDVSA, one of the world's largest energy corporations, is owned
by the Republic of Venezuela and is responsible for developing
the country's petroleum and petrochemical resources. PDVSA's
largest market is the United States, where most of its products
are sold by its wholly-owned subsidiary CITGO Petroleum Corp.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve



                            ***********


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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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