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

            Thursday, July 28, 2005, Vol. 6, Issue 148

                            Headlines


A R G E N T I N A

AGRO CRENNA: Closes Reorganization
AGUAS ARGENTINAS: Rejects Government's Final Proposal
ARGENTINE BANKS: Moody's Changes Outlook on BFSRs to Positive
CALIDAD Y SERVICIO: Debt Payments Halted, Set To Reorganize
EMI RECORDVINIL: Court Declares Company Bankrupt

EMPRESA LIBERTAD: General Report to be Submitted Aug. 10
FRIGORIFICO LA COLORADA: Court Approves Concurso Motion
OESTE EMBOTELLADORA: Date for the Informative Assembly Set
PRIMA S.R.L.: Declared Bankrupt by Court
PROALBA S.R.L.: Claims Verification Ends

PTO S.A.: Asks Court for Reorganization
SANTA MARIA: Proceeds With Liquidation
SANTIAGO CRENNA: Court Authorizes Plan, Concludes Reorganization
ULTRA MEDICINA: Individual Reports Due Aug. 2


B E R M U D A

GLOBAL CROSSING: Suit Settlement Hearing Set October 27, 2005


B O L I V I A

AGUAS DEL ILLIMANI: Makes $3M Guarantee Bond Payment


B R A Z I L

EMBRATEL: Reports R$94 Mln Net Income in 2Q05
LIGHT SERVICOS: Close to Wrapping Up Debt Restructuring


C H I L E

AES GENER: To Build $317M, 250MW Coal-Fueled Power Plant


C O L O M B I A

TERMOEMCALI FUNDING: S&P Assigns `D' to $165M Sr. Sec. Notes


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Fitch Removes Default Rating on Bonds


E C U A D O R

COFIEC: Likely to be Taken Over by the Government


E L   S A L V A D O R

BANCO AMERICANO: Seen Taking On Strategic Investor


M E X I C O

ALFA: Net Profit Soars in 2Q05 on Solid Revenue Growth
HYLSAMEX: Public Tender Offer for Series B, L Shares
UNEFON: Seeks More Time to Comply With New BMV Requirements


P E R U

SPCC: Completes $800M 144A International Debt Offering


V E N E Z U E L A

PARMALAT FINANZIARIA: Posts 34% Hike in First-half EBITDA

      -  -  -  -  -  -  -  -                            

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

AGRO CRENNA: Closes Reorganization
----------------------------------
The reorganization of Agro Crenna S.A. has been concluded. Data
revealed by Infobae on its Web site indicated that the process
was concluded after the Rio Cuarto's civil and commercial Court
No. 3 homologated the debt agreement signed between the Company
and its creditors.

CONTACT: Agro Crenna S.A.
         Rio Cuarto (Cordoba)


AGUAS ARGENTINAS: Rejects Government's Final Proposal
-----------------------------------------------------
Aguas Argentinas, the main local arm of French utility Suez,
rejected Tuesday the government's latest proposal on tariffs
after three years of negotiations following a 2002 freeze.

The government's final proposal, "doesn't consider proposals
made by the company, nor does it offer alternatives," the
utility said in a statement.

"Despite the enormous quantity of information submitted to
UNIREN (the government's utility contract negotiating body) for
the last three years, the document received yesterday [Monday]
doesn't contain any economic-financial references, contrary to
the government's previous proposal of June 15."

Aguas' minimum request to the government was for a 20% increase
in regulated water rates in January and a further 15% hike in
the second half of 2006. The Company would also like to receive
a helping hand from Argentine state-owned bank Banco de la
Nacion to convert part of its US$600 million debt into pesos to
limit future currency risks.

But the government has made it clear that it will not increase
rates unless Suez drops the claim it has filed against Argentina
in the World Bank's arbitration tribunal, the International
Center for the Settlement of Investment Disputes.

Therefore, Aguas is likely to rely on a clause under which it
can rescind its contract if authorities haven't met its request
for an increase in water rates within 30 business days.

"Barring a last-minute proposal from the Argentine government,
the formal decision to leave (Argentina) could be made in early
September," a person close to Suez said.

Aguas has said it would convene a board meeting Tuesday to adopt
a course of action.


ARGENTINE BANKS: Moody's Changes Outlook on BFSRs to Positive
-------------------------------------------------------------
Moody's Investors Service changed the outlook to positive from
stable on the "E" financial strength ratings (BFSRs) of the
following Argentine banks: Banco de la Ciudad de Buenos Aires,
Banco Credicoop Cooperativo Limitado, BBVA Banco Frances S.A.,
Banco Macro Bansud S.A., Banco Rio de la Plata S.A., and Banco
de Valores S.A.

Moody's noted that the outlook changes were based on the
respective banks' franchise strength and improving performance
since the height of Argentina's financial crisis in 2002. The
positive outlooks also reflect the expectation of further
improvements in the banks' fundamentals as they continue to
restructure their balance sheets and focus on new business in a
still challenging environment.

Moody's outlooks are opinions that a rating change may occur in
the medium term.

Moody's also pointed out that systemic risks remain a
substantial challenge for the Argentine banks, including a
backdrop of high country risk and a still uncertain operating
and legal environment. The agency also warned that system
financials continue to be heavily influenced by accounting and
regulatory forbearances and earnings restatements that make it
difficult to assess the banks' true economic solvency at this
juncture.

These concerns are reflected in the E BFSR, the lowest Moody's
assigns on this global rating scale, which is a measure of a
bank's intrinsic creditworthiness, excluding external support
elements. The E BFSRs are an indication of the banks' relatively
weak financial fundamentals derived from large exposures to the
highly indebted public sector, uncertain private sector asset
quality, weak core earnings, and limited funding access.

Published credit opinions on the individual issuers will be made
available on moodys.com.

The following ratings have been affected:

Banco de la Ciudad de Buenos Aires: Bank Financial Strength
Rating: E, outlook changed to positive from stable

Banco Credicoop Cooperativo Limitado.: Bank Financial Strength
Rating: E, outlook changed to positive from stable

BBVA Banco Frances S.A.: Bank Financial Strength Rating: E,
outlook changed to positive from stable

Banco Macro Bansud S.A.: Bank Financial Strength Rating: E,
outlook changed to positive from stable

Banco Rio de la Plata S.A.: Bank Financial Strength Rating: E,
outlook changed to positive from stable

Banco de Valores S.A.: Bank Financial Strength Rating: E,
outlook changed to positive from stable


CALIDAD Y SERVICIO: Debt Payments Halted, Set To Reorganize
-----------------------------------------------------------
Buenos Aires' civil and commercial Court No. 14 is reviewing the
merits of Calidad y Servicio Automotriz S.A. petition to
reorganize. La Nacion recalls that the Company filed the
petition following cessation of debt payments on July 2004.
Reorganization will allow Calidad y Servicio Automotriz S.A. to
avoid bankruptcy by negotiating a settlement with its creditors.

Clerk No. 28 is assisting the court on the Company's case.

CONTACT: Calidad y Servicio Automotriz S.A.
         Piedras 459
         Buenos Aires


EMI RECORDVINIL: Court Declares Company Bankrupt
------------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal
declared local company EMI Recordvinil S.A. "Quiebra", relates
La Nacion. The court approved the bankruptcy petition filed by
Obra Social de la Industria del Plastico, whom the Company has
debts amounting to $4,890.85.

The Company will undergo the bankruptcy process with Lilian Rey
as trustee. Creditors are required to present proofs of their
claim to Ms. Rey for verification before Sep. 10, 2005.
Creditors who fail to submit the required documents by the said
date will not qualify for any post-liquidation distributions.

Clerk No. 11 assists the court on the case.

CONTACT: EMI Recordvinil S.A.
         Parana 439
         Buenos Aires

         Ms. Lilian Rey, Trustee
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires


EMPRESA LIBERTAD: General Report to be Submitted Aug. 10
--------------------------------------------------------
Manuel Hector Alvarez, the trustee appointed by the court for
the Empresa Libertad S.A. reorganization, will submit a general
report on Aug. 10, 2005. The report will contain the audited
accounting and business records as well as the summary of
important events pertaining to the reorganization.

Infobae relates that the trustee submitted on June 29, 2005 the
individual reports on the validated claims of the Company's
creditors. The trustee had accepted claims until May 16, 2005.

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 Nov. 3, 2005.

Empresa Libertad S.A. began reorganization following the
approval of its petition by Court No. 2 of Santiago del Estero's
civil and commercial tribunal. Reorganization allows the Company
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.

CONTACT: Empresa Libertad S.A.  
         Andres Rojas 139 BA Autonomia
         Ciudad de Santiago del Estero (Santiago del Estero)

         Mr. Manuel Hector Alvarez, Trustee
         Avda Belgrano 855 (S)
         Ciudad de Santiago del Estero (Santiago del Estero)


FRIGORIFICO LA COLORADA: Court Approves Concurso Motion
-------------------------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Frigorifico La
Colorada S.A., according to a report from Argentine daily La
Nacion.

Estudio Escandell-Hurovich-Lopez Cepero, the court-appointed
trustee, will verify claims from the Company's creditors until
Sep. 29, 2005. After verification period, the trustee will
submit the individual and general reports in court. Dates for
submission of these reports are yet to be disclosed.

The informative assembly will be held on June 27, 2006.
Creditors will vote to ratify the completed settlement plan
during the said assembly.

The city's Clerk No. 3 assists the court on the case.

CONTACT: Frigorifico La Colorada S.A.
         Avenida Belgrano 535
         Buenos Aires

         Estudio Escandell-Hurovich-Lopez Cepero, Trustee
         Teniente General Juan Domingo Peron 1509
         Buenos Aires


OESTE EMBOTELLADORA: Date for the Informative Assembly Set
----------------------------------------------------------
The informative assembly for the Oeste Embotelladora S.A.
insolvency case is set on Oct. 11, 2005. During the said
assembly, the Company will present its completed settlement
proposal to the creditors.

The court-appointed trustee had presented a general report on
June 2, 2005.

Court No. 2 of Mendoza's civil and commercial tribunal granted
the Company's petition for reorganization after it defaulted on
its debt payments.


PRIMA S.R.L.: Declared Bankrupt by Court
----------------------------------------
Prima S.R.L. is now "Quiebra" - meaning bankrupt, says Infobae.
Bahia Blanca's civil and commercial Court No. 7 decreed the
Company's bankruptcy and appointed Nestor Julio Radice, as
receiver for the Company. Mr. Radice will be reviewing
creditors' claims until Aug. 12, 2005. Analyzing these claims is
important because the outcome of the process will determine the
amount each creditor will get after all the assets of the
Company are liquidated. The court, which is aided by Clerk No.
6, will conclude the bankruptcy process by liquidating its
assets to repay creditors.

CONTACT: Prima S.R.L.
         Avda Colon 447
         Bahia Blanca

         Mr. Nestor Julio Radice, Trustee
         Beruti 623
         Bahia Blanca


PROALBA S.R.L.: Claims Verification Ends
----------------------------------------
The verification phase of Proalba S.R.L. insolvency case will
end tomorrow, July 29, 2005. The authenticated claims of the
Company's creditors will be presented in court by Carlos Erasmo
Moreno, the appointed trustee, as individual reports on Sep. 12,
2005.

A general report is also due on Oct. 26, 2005. This is a report
on the Company's accounting and business records, which are
audited by the court-appointed trustee. It also includes the
summary of important events pertaining to the reorganization.

An Informative Assembly, the final stage of reorganization where
the settlement proposal is presented to the Company's creditors
for approval, is scheduled on May 9, 2006.

Buenos Aires' civil and commercial Court No. 17 approved the
reorganization motion filed by the Company after it failed to
pay its creditors.

CONTACT: Mr. Carlos Erasmo Moreno, Trustee
         Tucuman 1658
         Buenos Aires


PTO S.A.: Asks Court for Reorganization
---------------------------------------
PTO S.A., a company operating in Buenos Aires, has requested for
reorganization after failing to pay its liabilities since June
2005.

The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Buenos Aires' civil and commercial
Court No. 7. Clerk No. 13 assists on this case.

CONTACT: PTO S.A.
         Pichincha 364
         Buenos Aires


SANTA MARIA: Proceeds With Liquidation
--------------------------------------
Mr. Eduardo Peralta successfully sought for the bankruptcy of
Santa Maria S.C.A. after Court No. 7 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra," reports La
Nacion.

As such, Santa Maria S.C.A. will now start the process with Mr.
Adrian Ponce as trustee. Creditors must submit proofs of their
claim to the trustee by Sep. 30, 2005 for authentication.
Failure to comply with this requirement will mean a
disqualification from the payments that will be made after the
Company's assets are liquidated.

The creditor sought for the Company's liquidation after the
latter failed to pay debts amounting to $40,532.96.

The city's Clerk No. 14 assists the court on the case that will
close with the sale of all of its assets.

CONTACT: Santa Maria S.C.A.
         Avenida Directorio 5221
         Buenos Aires

         Mr. Adrian Ponce, Trustee
         Bernardo de Irigoyen 330
         Buenos Aires


SANTIAGO CRENNA: Court Authorizes Plan, Concludes Reorganization
----------------------------------------------------------------
Rio Cuarto-based Santiago Crenna S.A. concluded its
reorganization process, according to data released by Infobae on
its Web site. The conclusion came after the city's civil and
commercial Court No. 3 homologated the debt plan signed between
the Company and its creditors.


ULTRA MEDICINA: Individual Reports Due Aug. 2
---------------------------------------------
The individual reports on the verified claims of creditors of
Ultra Medicina S.A. will be submitted to court on Aug. 2, 2005,
Infobae reports. The verification phase ended on June 6, 2005.

Trustees Antonia Hortensia Arquier, Raul Alberto Barontini and
Lorena Paola Canut are also required by the court to prepare a
general report on the Company's reorganization and submit it on
Sep. 14, 2005. The submission of this report will be followed by
the presentation of the Company's settlement proposal to the
creditors. This proposal will be drafted from the submitted
claims and will be voted on by the creditors during the
informative assembly scheduled on Feb. 14, 2006.

Ultra Medicina S.A. successfully petitioned for reorganization
after Rosario's civil and commercial Court No. 10 issued a
resolution opening the Company's insolvency proceedings. Under
insolvency protection, the Company will continue to manage its
assets subject to certain conditions imposed by Argentine law
and the oversight of a court-appointed trustee.

CONTACT: Ultra Medicina S.A.   
         Cordoba 1437
         Rosario (Santa Fe)

         Ms. Antonia Hortensia Arquier
         Mr. Raul Alberto Barontini
         Ms. Lorena Paola Canut, Trustees
         Zeballos 2161
         Rosario (Santa Fe)



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

GLOBAL CROSSING: Suit Settlement Hearing Set October 27, 2005
-------------------------------------------------------------
The United States District Court for the Southern District of
New York will hold a fairness hearing for the proposed
settlement in the matter: In re Global Crossing, Ltd.,
Securities Litigation, Case No. 02 Civ. 910 (GEL), on behalf of
all persons who bought Global Crossing Ltd. or Asia Global
Crossing Ltd. Securities Between February 1, 1999 and December
8, 2003.

The Court will hold a hearing on October 27, 2005 at 2 p.m. to
consider whether to approve the Settlement and whether to grant
the request by the lead lawyers representing the Class Members
for attorneys' fees and costs.

For more details, contact Jay W. Eisenhofer, Esq., Sidney S.
Liebesman, Esq. or Grant & Eisenhofer P.A. of Chase Manhattan
Centre, 1201 N. Market St., Wilmington, DE, 19801, Phone: (302)
622-7149, Fax: (302) 622-7100 OR Global Crossing, Ltd.
Securities Litigation, Andersen Entities Partial Settlement, c/o
The Garden City Group, Inc., Claims Administrator, P.O. Box 9000
#6152, Merrick, NY, 11566-9000, Phone: 1-866-808-3497, Web site:
http://www.globalcrossinglitigation.com.(Class Action Reporter,  
Wednesday, July 27, 2005, Issue No. 147)



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

AGUAS DEL ILLIMANI: Makes $3M Guarantee Bond Payment
----------------------------------------------------
Talks between Bolivian capital La Paz water services
concessionaire Aguas del Illimani (AISA) and the government
regarding the rescission of AISA's concession are now back on
track.

Business News Americas reports that the resumption of talks
follows AISA's decision to pay a US$3 million guarantee bond and
its declaration to pay another US$5 million on July 29.

According to AISA spokesperson Tania Jaldin, discussions at the
moment are leaning towards a share purchase arrangement.

Earlier reports suggested that the Bolivian government has
offered to buy a majority stake in AISA for US$11 million to
avoid a service interruption. But the problem is that the
government's US$11-million offer could not be justified while
the market price was unknown.

The material value of the Company could be determined through an
audit of the Company's books from 1997, when it won the
concession to operate basic services in the Bolivian capital La
Paz and satellite city El Alto, to date. However, AISA is
resisting the probe claiming that the period 1997-2001 has
already been covered by a previous audit.

AISA, a subsidiary of French energy group Suez, is in handover
talks with Sisab and basic services ministry (VSB) officials
after the government rescinded its 30-year concession after
residents protested over Aisa's supposed poor service.

The World Bank (WB) will provide assistance in the process to
turn the concessionaire back over to the state, according to WB
regional director Marcelo Giugale.



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

EMBRATEL: Reports R$94 Mln Net Income in 2Q05
---------------------------------------------
Embratel Participacoes S.A. (Embratel Participacoes or
"Embrapar") holds 99.0 percent of Empresa Brasileira de
Telecomunicacoes S.A. ("Embratel").

(All financial figures are in Reais and based on consolidated
financial statements of Embrapar)

Highlights

- Net revenues were R$1,859 million in the second quarter of
2005. Year-to-date net revenues were R$3,756 million.

- EBITDA was R$422 million in the second quarter and R$887
million in the first half of 2005.

- Operating income was R$155 million in the second quarter and
R$349 million in the first half of
2005.

- Net income was R$94 million in the second quarter of 2005 and
R$137 million year-to-date.

- Net debt totaled R$682 million at June 30, 2005.

- Embrapar increased R$1,823 million to its capital base during
the quarter, using the funds to reduce outstanding debt.

Total Net Revenues

In the second quarter of 2005, total net revenues were R$1,859
million, an increase of 2.9 percent compared with the second
quarter of 2004. Higher revenues resulted from a 32.6 percent
increase in other services revenues, a 1.3 percent increase in
long distance voice revenues and a 1.5 percent increase in data
revenues.

Compared with the first quarter of 2005, total net revenues
declined 2.0 percent. A 12.3 percent growth in local revenues
and a 6.1 percent increase in other services revenues helped to
offset a 4.1 percent decline in long distance voice revenues and
a 2.0 percent decrease in data communications revenues.

Year-to-date, total net revenues were R$3,756 million, an
increase of 1.5 percent compared with the first half of 2004 due
to a 4.6 percent increase in data revenues, a 29.4 percent
increase in other services revenues and an 8.8 percent increase
in local services revenues, which offset a 1.6 percent decline
in long distance voice revenues.

Data Communications

In the second quarter of 2005, 102.8 thousand 64kbits line
equivalents were added. At the end of June 2005, Embratel had
1,221.2 thousand 64kbit line equivalents providing data services
to business customers. Year-over-year, 64kbit line equivalents
in service increased 60.2 percent.

Embratel's second quarter data communications revenues were
R$438 million, a year-over-year increase of 1.5 percent.
Compared with the first quarter of 2005, data revenues declined
2.0 percent due to a one-time R$9 million revenue recorded for
Internet services provided which occurred in the first quarter
of 2005. Excluding that amount, data revenues would have been
flat quarter to quarter.

In the first half of 2005, data revenues rose 4.6 percent to
R$886 million.

Domestic Long Distance

In the second quarter of 2005, domestic long distance traffic
totaled 3,095 million minutes, a gain of 3.6 percent compared
with the first quarter 2005.

Domestic long distance revenues were R$1,013 million, a 3.5
percent increase compared with the second quarter of 2004,
benefiting from tariff increases which occurred in the second
half of 2004.

Compared with the first quarter of 2005, domestic long distance
revenues decreased 2.7 percent as a result of lower average
revenue per minute due to the competitive environment. Year-to-
date, domestic long distance revenues were R$2,053 million, flat
compared with the prior year period.

International Long Distance

International long distance traffic totaled 600 million minutes,
flat compared with the previous 2005 quarter but up 59.9 percent
from the year-earlier quarter because of higher inbound traffic.

Year-over-year, second quarter international long distance
revenues fell 10.1 percent to R$169 million due to tariff
declines and the effect of the Real's appreciation. Compared
with the first three months of the year, second quarter
international long distance revenues decreased 11.9 percent due
to the effect on inbound revenues of the appreciation of the
Real to the US dollar.

In the first half of 2005, international long distance revenues
declined 7.8 percent to R$360 million reflecting lower tariffs
and local currency appreciation.

Local Services

Revenues from local services gained 8.3 percent to R$168 million
compared with last year's second quarter due to the growth in
the customer base and local traffic. Compared with the first
quarter of 2005, local revenues rose 12.3 percent reflecting a
growing corporate customer base, higher traffic and increased
handset sales. Growth of the customer base and local traffic
also produced an 8.8 percent increase to R$317 million in the
first half of 2005.

Cost and Expenses

Interconnection

Interconnection costs rose to R$894 million in the second
quarter, an increase of 5.4 percent compared with the second
quarter of 2004. On a sequential-quarter basis, interconnection
increased 3.0 percent due to traffic growth. The telco ratio
rose to 48.1 percent of net revenues in the second quarter
compared with 45.7 percent in the first quarter of 2005. The
higher telco ratio reflected a lower average revenue per minute.

Year-to-date, interconnection costs were R$1,761 million, up 4.2
percent.

Costs of Services (excluding interconnection)

Year-over-year cost of services (excluding interconnection) rose
2.4 percent mainly due to higher energy, transport of equipment
and equipment inventory costs. Compared with the first three
months of 2005, cost of services (excluding interconnection)
rose 28.4 percent to R$183 million. The main factor in the
increase were higher third party expenses related to data and
local service installations since the company has been
increasing the number of customers. During the quarter, cost of
services increased due to more handset sales because of the
growth in the wireless local loop customer base.

Year-to-date, cost of services excluding interconnection were
R$325 million declining 4.2 percent compared with the first half
of 2004 due to lower handset sales.

Selling Expenses

Selling expenses were R$200 million in the second quarter of
2005, a decline of 7.0 percent due to a lower provision for
doubtful accounts compared with the year-ago quarter. Compared
with the first quarter of 2005, selling expenses declined 11.6
percent. The decrease was entirely due to a reduction in the
provision for doubtful accounts. Continued efforts to solve
various billing issues related to mobile originated long
distance calls have led to agreements between Embratel and
certain mobile operators and improvement in collection of co-
billed mobile revenues which enabled Embratel to record a non-
recurring lower allowance for doubtful accounts. A complete
solution of these issues will require continued effort by the
company.

In the first half of 2005, selling expenses declined 1.1 percent
to R$426 million.

General and Administrative Expenses

General & administrative expenses were R$193 million, decreasing
38.8 percent from the second quarter of 2004. Excluding a
retention plan payment of R$92 million in the second quarter of
2004, general and administrative expenses declined 13.5 percent
mainly due to actions taken by management to reduce third party
and personnel expenses. Compared with the first quarter of 2005,
general and administrative expenses increased 3.2 percent.

For the first half of 2005, general and administrative expenses
declined 31.4 percent to R$380 million. Excluding retention
payments, general and administrative expenses dropped 17.7
percent.

Other Operating Income and Expense, net

Embratel recorded other operating income of R$32 million in the
second quarter related to past period revenues recorded as a
result of agreements with two cellular operators with respect to
the co-billing of mobile-originated long distance calls. In the
second quarter of 2004, Embratel recorded operating income of
R$97 million due to non-recurring reversals made in that
quarter.

EBITDA, EBIT and Net Income

Compared with the second quarter of 2004, EBITDA increased 21.5
percent to R$422 million. The EBITDA margin rose to 22.7 percent
from 19.2 percent a year-ago. Compared with the first quarter of
2005, EBITDA declined 9.2 percent. For the first half of 2005,
EBITDA increased 11.4 percent to R$887 million compared with the
year-ago period.

Operating income (EBIT) was R$155 million in the second quarter,
improving 167.8 percent compared with the second quarter of 2004
but down 20.1 percent compared with the first quarter of 2005.
Year-to-date, operating income was R$349 million, an increase of
63.5 percent compared with the first half of 2004.

"Net Financial Expense", including monetary and exchange
variation, was positive by R$7.2 million due to a 11.8 percent
appreciation of the Real to the US dollar and resulting exchange
gains on the company's unhedged foreign currency debt. Year-
over-year and year-to-date, the company benefited from the
effect of the appreciation of the Real on its foreign currency
debt as well as overall debt reduction.

Net income rose to R$94 million in the second quarter of 2005
compared with R$43 million in the first quarter of 2005. In the
first half of 2005, net income was R$137 million.

Financial Position

At June 30, cash position was R$671 million. Embrapar ended the
quarter with a total outstanding debt of R$1.4 billion and net
debt of R$682 million. Short-term debt (accrued interest, short-
term debt and current maturity long-term debt in the next 12
months) was R$438 million. During the quarter, Embrapar received
R$1.8 billion from the capital increase that took effect on May
23, 2005 and used the funds to redeem 35 percent of the
outstanding guaranteed notes (approximately R$275 million), paid
down R$1.0 billion of local commercial paper and pre-paid US$165
million of short -term debt.

Capex

Total capital expenditures in the second quarter of 2005 were
R$378 million. The breakdown is as follows: local
infrastructure, access and services- 21.0 percent; data and
Internet services - 17.5 percent; network infrastructure - 2.4
percent, others - 10.7 percent, and Star One - 48.4 percent. In
the first half of 2005 capital expenditures were R$596 million.

Possible Acquisitions

On May 23, 2005 Embrapar's Board of Directors authorized the
company to conduct studies in order to determine whether it
would be advantageous to the company to acquire from Telmex a
controlling stake in Telmex do Brasil and 37.1% participation in
Net Servicos. Additionally, the Board stated that should these
acquisitions occur, they should be made through another capital
increase at Embrapar with the issuance of new ordinary shares.
Embrapar is in the process of conducting these studies.

Capital Increase

On May 23, Embrapar concluded a R$1.8 billion capital increase
raising the company's capital base from R$2.3 billion to R$4.1
billion and the total number of outstanding shares to 758.3
billion (282 billion ordinary and 476.3 billion preferred).
Under the company's current ownership structure, Telmex is the
controlling shareholder with 63.9 percent (95.1 percent ordinary
and 45.4 percent preferred) and, excluding treasury stock, the
remaining 35.9 percent is market float.

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is well positioned
to be the country's only true national, local service provider
for corporate customers. Service offerings: include telephony,
advanced voice, high-speed data communication services,
Internet, satellite data communications, corporate networks and
local voice services for corporate clients. Embratel is uniquely
positioned to be the all-distance telecommunications network of
South America. The Company's network has countrywide coverage
with 28,868 km of fiber cables comprising 1,068,657 km of optic
fibers.

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

CONTACT: EMT - Embratel Participacoes S.A.
               Rua Regenta Feijo
               166 Sala 1687-B Centro
               Rio de Janeiro, 20060-060
               Brazil
               Phone: 5521-519-6474
               URL: http://www.embratel.net.br


LIGHT SERVICOS: Close to Wrapping Up Debt Restructuring
-------------------------------------------------------
Power distribution company Light Servicos de Electricidade SA
moved closer to concluding its ownership and debt restructuring
Monday after its French parent concluded a BRL991-million
capital injection.

Business News Americas reports that Electricite de France (EdF)
carried out the capital injection through the conversion of a
US$400-million debt that Light owed it into voting shares.

The operation, according to a Light spokesperson, paves the way
for the signing of the ratification of a US$760-million debt
restructuring agreement with 12 creditor banks.

Light will now pay over the next five years US$600 million that
originally matured over the next 12 months and has postponed to
2012 from 2007 the payment of US$160 million.

EDF's capital injection also fulfills the condition for national
development bank BNDES to buy from Light BRL727 million in local
convertible debt.

The transactions should bring Light out of default, aligning its
debt obligations with the Company's revenue and pave the way for
it to invest BRL1 billion in the 2005-2007 period.

Light will start listing its shares on the Novo Mercado on July
28. The Novo Mercado is the Brazilian Stock Exchange's most
rigorous forum for listing. To qualify for listing on the Novo
Mercado, a company must sell a minimum stake of 25% while 100%
of the company's shares must be common, rather than preferred.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO



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

AES GENER: To Build $317M, 250MW Coal-Fueled Power Plant
--------------------------------------------------------
Power company AES Gener SA plans to build a US$317-million, 250-
megawatt coal-fueled power plant some 100 kilometers northwest
of Santiago.

The Nueva Ventanas project forms part of the Company's plan to
diversify Chile's energy matrix in light of natural gas
restrictions coming from neighboring Argentina.

Nueva Ventanas will help to "increase [supply] stability in the
case of eventual supply problems considering the new energy
situation characterized by natural gas shortages in Chile," AES
Gener said.

AES submitted its EIS for the project to environmental authority
Conama on July 15. The study indicates that advanced technology,
which the project will use, will allow gas emissions to stay
within the range permitted by the country's regulations.

US power company AES (NYSE: AES) owns AES Gener through its
Inversiones Cachagua holding company.

CONTACT: AES Gener
         Mariano Sanchez Fontecilla 310 Piso 3
         Santiago de Chile
         Phone: 562-6868900
         Fax: 562-6868991



===============
C O L O M B I A
===============

TERMOEMCALI FUNDING: S&P Assigns `D' to $165M Sr. Sec. Notes
------------------------------------------------------------
Rationale

The 'D' rating on TermoEmcali Funding Corp.'s US$165 million
senior secured notes due 2014 reflects the Colombian company's
failure to make its September 2004 debt-service payment. Since
then, the project-financed entity also failed to make its debt-
service payments through June 2005.

TermoEmcali operates a 234 MW combined-cycle, natural-gas-fired
power generation facility, and sells capacity and energy to
Empresas Municipales de Cali (Emcali), a Colombian municipal
utility that provides diversified services to two million
residents in and around Santiago de Cali.

TermoEmcali entered a 20-year purchased-power agreement (PPA)
with Emcali to provide capacity and energy, and eventually
transfer the facility to Emcali at no cost. However, after
Emcali defaulted on March 6, 2003, the PPA has not been honored.
As of June 2005, Emcali continues to fail to meet its financial
obligations due under the PPA for more than $85 million.

In November 2003, TermoEmcali and Emcali, the project's
offtaker, signed a memorandum of understanding (MOU) while
pursuing an orderly restructuring of the obligations under the
PPA. The MOU expired on June 2004, and although the parties
discussed extending it, Emcali indicated it would not continue
payments under the MOU until an energy-purchase agreement (EPA),
replacing the former PPA, is signed.

Despite the expiration of the MOU and Emcali's failure to
perform its obligations under the PPA, Emcali and TermoEmcali
continued to negotiate a restructuring of the PPA. On June 2005,
TermoEmcali reached agreement to restructure Emcali's
obligations to the project and settle certain disputes with
Emcali. The deadline to achieve the restructuring is May 17,
2006. In parallel with those negotiations, TermoEmcali and a
committee of restricted bondholders and other lenders have held
discussions about restructuring the financing documents on a
basis consistent with cash flows anticipated under a
restructured PPA. After the restructuring of the financing
documents is finalized Standard & Poor's Ratings Services will
reassess the transaction's credit rating.

Primary Credit Analyst: Luis Manuel Martinez, Mexico City
(52) 55-5081-4462; luis_martinez@standardandpoors.com

Secondary Credit Analyst: Federico Mora, Mexico City
(52) 55-5081-4436; federico_mora@standardandpoors.com



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

* DOMINICAN REPUBLIC: Fitch Removes Default Rating on Bonds
-----------------------------------------------------------
Fitch Ratings upgraded Tuesday Dominican Republic's sovereign
external bonds that were eligible for April's debt exchange but
were not fully extinguished to 'CCC+' from 'DDD'. This rating
action reflects the government's commitment to service this debt
as demonstrated by the recent coupon payment on 2013 bond. This
rating applies to the 9.50% bonds due 2006 (US$) and the 9.04%
bonds due 2013.

The exchange eligible bonds were downgraded to 'DDD' on May 5 on
the announcement of the completion of a debt exchange, which
Fitch determined to be an event of default under its distressed
debt exchange criteria (see 'Sovereign Distressed Debt
Exchanges' at 'www.fitchratings.com'). It is Fitch's practice to
keep the exchange eligible bonds in the default category for at
least 30 days and to take them out of default when payments have
resumed according to the original terms. The reopening of the
exchange brought investor participation up to 97% of the face
value of eligible bonds from the previous 94%.

The bonds removed from default Tuesday are rated below the new
bonds ('B-') issued as part of the exchange. The distinction is
based on Fitch's opinion that the government's willingness to
service bonds not tendered on time and in full may be lower than
for the new bonds. Near-term amortization payments on the old
bonds (estimated at $40 million in 2006) appear to be covered by
net multilateral disbursements and some issuance in the domestic
market. In the event that financial pressures mount, the
government may elect to incur arrears on exchange eligible bonds
before doing so on new bonds issued in the exchange. As part of
the exchange, bondholders consented to exit amendments
eliminating cross default clauses for holdouts of exchange
eligible bonds. As a result, payment delays on these bonds would
not trigger defaults on the US$1.1 billion in new bonds issued
in the exchange.

CONTACT: Shelly Shetty +1-212-908-0324, New York
         Roger M. Scher +1-212-908-0240, New York

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



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

COFIEC: Likely to be Taken Over by the Government
-------------------------------------------------
Ecuador's government is mulling the acquisition of a bank
controlled by the country's deposit insurance agency AGD to
provide services to affiliates of social security institute
IESS, reports Business News Americas.

The government is yet to disclose the name of the bank. However,
local newspaper El Universo suggested that the most likely
candidate for the acquisition is Cofiec.

Cofiec is one of the failed banks taken over by the government,
through the AGD, after Ecuador's severe banking crisis in 1998-
1999.

Cofiec could issue mortgage loans, among other financial
services, which would diversify the services offered by the IESS
to its affiliates.

If such an acquisition were to take place, the IESS would not
run the bank but would rather hire professionals to do it, said
IESS official Manuel Vivanco.



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

BANCO AMERICANO: Seen Taking On Strategic Investor
--------------------------------------------------
Banco Americano expects to decide by late August whether to take
on a strategic investor, Business News Americas reports.

"It's more of a strategic move. We feel that in order to remain
in a competitive environment we need a strategic partner where
we can take advantage of a larger financial network and have
access to cheaper funding," Business News Americas quoted the
bank's chairman Ronald Lacayo as saying.

Analysts and market observers also see a strategic investor as
helping Banco Americano compete in an increasingly concentrated
banking industry.

Banco Americano received several offers from seven Central
American and international banking groups. These offers range
from the acquisition of 100% of the bank's shares to the
purchase of a minority stake.

The bank ended the first quarter with US$84.0 million in assets
and US$14.0 million in equity. Nevertheless, Fitch Ratings cut
Banco Americano's national scale long-term ratings to B- from B
in June, citing pressure on the bank's balance sheet due to its
shallow funding base and the significant loss of deposits during
the first quarter.



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

ALFA: Net Profit Soars in 2Q05 on Solid Revenue Growth
------------------------------------------------------
Conglomerate Alfa SA reported Monday a 65% increase in second-
quarter net profit to MXN1.838 billion (US$170 million) from
MXN1.117 billion a year earlier on solid revenue growth.

In a press release, the Monterrey-based company said: "Higher
sales volumes of petrochemicals, refrigerated food products and
aluminum auto components are accountable for most of the revenue
growth in the quarter."

Revenue rose 22% to MXN17.382 billion.

Alfa's operating profit in the second quarter of 2005 was also
up at MXN1.67 billion, from MXN1.35 billion in the second
quarter of 2004, while earnings before interest, taxes,
depreciation and amortization, or EBITDA, rose to MXN2.29
billion from MXN2.24 billion.

Net income included contributions from Alfa's 42.5% stake in
steel unit Hylsamex SA.

Hylsamex reported net profit of MXN977 million in the second
quarter on sales of MXN6.74 billion. Hylsamex said it shipped
824,500 tons of steel in the quarter, up 5% from the year-ago
period. Revenue per ton fell 1% to $742 because international
steel prices were lower.

A 3.61% appreciation of the peso against the dollar in the
quarter also helped net profit. Alfa reported a foreign exchange
gain of MXN212 million, against a loss in the same period last
year of MXN262 million.

ALFA is a Mexican company involved in the petrochemicals,
refrigerated food, aluminum auto components, steel and telecom
businesses.

CONTACT: ALFA
         Mr. Enrique Flores
         Director of Corporate Communications
         Phone:(011-52-81) 8748 1207
         E-mail: eflores@alfa.com.mx


HYLSAMEX: Public Tender Offer for Series B, L Shares
----------------------------------------------------
On July 26, 2005, I.I.I. - Industrial Investments Inc. (I.I.I.)
and Siderar S.A.I.C. launched a tender offer in Mexico for the
acquisition of all outstanding shares of Hylsamex S.A. de C.V.
(Hylsamex), held by the public generally and not owned directly
or indirectly by Alfa S.A. de C.V. (Alfa).

I.I.I. is also acquiring Alfa's 42.5% interest in Hylsamex. The
transaction with Alfa is to close simultaneously with the
closing of the tender offer and provides for a payment of a
price per share of Hylsamex equal to the price per share offered
in the tender offer.

The tender offer, which is scheduled to close at 3 p.m., Mexico
City time, on August 16, 2005, is being made on the terms and
subject to the conditions set forth in the Folleto Informativo
authorized by the Comision Nacional Bancaria y de Valores (the
Mexican Banking and Securities Commission), which has been
prepared by the offeror without Hylsamex's participation. Among
other conditions, the offerors will not be required to
consummate the tender offer unless a sufficient number of
Hylsamex's outstanding Series B shares and Series L shares are
tendered and not withdrawn so that, after consummation of the
tender offer and the acquisition of Alfa's 42.5% interest, the
offerors collectively hold more than 50% of Hyslamex's
outstanding shares and more than 50% of Hylsamex's Series B
shares.

The Folleto Informativo contains material information on the
terms and conditions of the tender offer and the procedures for
tendering shares and should be read in their entirety before any
decision is made with respect to the tender offer.

The statements contained herein do not constitute an offer or
sale of any securities in any jurisdiction. The tender offer is
being made pursuant to the Folleto Informativo and the
statements herein should be deemed qualifed in its entirety by
the information included in the Folleto Informativo.

CONTACT:  Othon Diaz Del Guante
          Tel: +(52) 81-8865-1240
          E-mail: odiaz@hylsamex.com.mx

          Ismael De La Garza
          Tel: +(52) 81-8865-1224
          E-mail: idelagarza@hylsamex.com.mx

          Kevin Kirkeby
          Tel: +(646) 284-9416
          E-mail: kkirkeby@hfgcg.com


UNEFON: Seeks More Time to Comply With New BMV Requirements
-----------------------------------------------------------
Mexican mobile operator Unefon is negotiating with the stock
market BMV to grant it a year to comply with the new listing
requirements, Business News Americas reports, citing Unefon
president Moises Saba.

The BMV introduced early this year the new 12% minimum free
float requirement. On July 15, it suspended trading of Unefon's
shares, saying there had been little indication of the Company
meeting the new requirements.

Unefon had 7% of its shares held by public investors.

"We are negotiating with the authorities so they grant us this
period to correct the situation," Saba said. "It would be an
error to delist us, above all now that the company is working
hard and we are growing slowly but surely," he added.

Unefon announced in April it was planning to delist, citing poor
liquidity of its stock. However, shareholders eventually decided
to keep the shares trading.

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



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

SPCC: Completes $800M 144A International Debt Offering
------------------------------------------------------
Marking one of the largest inaugural debt issues in recent years
out of Latin America, Southern Peru Copper Corporation (SPCC)
has completed an $800 million 144A international debt offering
underwritten by Citigroup.  The international law firm Milbank,
Tweed, Hadley & McCloy LLP, led by partners Michael Fitzgerald
and Robert Williams, represented SPCC in negotiating and closing
the deal.

Milbank's Fitzgerald noted, "SPCC continues to take advantage of
favorable conditions in the financial markets with the issuance
of these notes.  Record high copper prices and low interest
rates contributed to the offering being more than five times
oversubscribed.  Following on the successful landmark $955
million equity offering by SPCC in June of this year, the note
offering is indicative of investors' continuing positive
reaction to Grupo Mexico's recent merger of its Mexican and
Peruvian operations into SPCC."

Milbank also represented Grupo Mexico and its subsidiary Minera
Mexico in the recent merger of its Mexican and Peruvian
operations to turn SPCC (NYSE, LSE: PCU) into the world's number
2 copper company by reserves and market capitalization.  As a
result of the merger, Grupo Mexico increased its ownership
interest in SPCC to approximately 75%.

About the Offering:

The notes were offered on a Rule 144A/Reg. S basis with SEC
registration rights.  The offering was divided into two tranches
with SPCC selling $600 million of 30 year notes with a coupon of
7.5% and $200 million of 10 year notes with a coupon of 6.375%.  
The proceeds of the offering were used primarily to refinance
approximately $700 million of bank loans recently arranged by
Citigroup.  The lead managers for the sale were Citigroup Global
Markets Inc. and UBS Investment Bank.

The Milbank team representing SPCC was led by partners Michael
Fitzgerald and Robert B. Williams with associates John Cobb,
Michael Fordham, Ellie Kwack and Hieu Pham.

Milbank, Tweed, Hadley & McCloy LLP is a premier global law firm
headquartered in New York, with offices in Washington, D.C., Los
Angeles, Palo Alto, London, Frankfurt, Munich, Tokyo, Hong Kong
and Singapore.  Recently named Legal Week's "International Firm
of the Year" for 2004, Milbank is a recognized leader in capital
markets, corporate finance, project finance, acquisition
finance, and other major fields of legal practice.  The Firm's
practice includes cross-border mergers and acquisitions and
global securities transactions as well as assisting
multinational clients with their cross border investments.  
Milbank provides a full range of services to many of the world's
leading financial, industrial and commercial enterprises, as
well as governments, institutions and individuals.



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

PARMALAT FINANZIARIA: Posts 34% Hike in First-half EBITDA
---------------------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
announces the operating and financial results of the Parmalat
Group at June 30, 2005.

Scope of Consolidation

The scope of consolidation has been defined using principles
that are consistent with those adopted in preparing the
statement of income and balance sheet at December 31, 2004.  
Companies that are subject to certain restrictions on their
management as a result of local bankruptcy proceedings that have
effectively placed them outside the control of Parmalat
Finanziaria S.p.A. in Extraordinary Administration, and
companies in voluntary liquidation are no longer consolidated on
a line-by-line basis.

The current scope of consolidation no longer includes companies
in which the Group held equity investments that were sold after
January 1, 2005.  The corresponding 2004 data have been restated
accordingly on a pro-forma basis. The operations divested in
2005 include the companies that comprised the U.S.A. Bakery
Division (Mother's Cake & Cookies, Archway Cookies and three
production units in Canada), which were sold in January 2005,
and Parmalat Uruguay, which was sold in February 2005.

Margherita Yogurt, which was placed in liquidation in February
2005, has also been removed from the scope of consolidation.  
Following a settlement with the three U.S. companies in Chapter
11 (Parmalat U.S.A. Corporation, Farmland Dairies LLC and
Farmland Stremicks Sub LLC) and their respective bankruptcy
trustees and creditors (U.S.A. Dairy), the abovementioned three
companies have been permanently removed from the Parmalat Group.

Core Businesses

In the six months ended June 30, 2005, the Group's Core
Businesses reported slightly higher revenues than in the same
period last year. Revenues were up 1.1%, rising from EUR1,820.4
million at June 30, 2004 to EUR1,839.7 million at June 30, 2005.  
EBITDA also improved, growing from EUR131.8 million (7.2% of
revenues) to EUR142.0 million (7.7% of revenues).

These data do not reflect the impact of the nonrecurring charges
related to the extraordinary administration proceedings, which
amounted to about EUR48.6 million (EUR38.8 million in 2004).  
Revenues for the second quarter of 2005 (difference between the
cumulative figures at June 30 and March 31) rose sharply
compared with the previous quarter (revenues up to 8.9% to
EUR959.2 million compared with EUR880.5 million in the first
quarter; EBITDA to EUR80.2 million, or 29.8% more than the
EUR61.8 million earned in the first three months of the year),
but were little changed from the second quarter of 2004, when
revenues totaled EUR974.5 million, (-1.6%) and EBITDA amounted
to EUR81.2 million (-1.2%).

Monthly revenues (difference between the cumulative figures at
June 30 and May 31) decreased compared with the same period a
year ago (EUR308.9 million vs. EUR336.0 million).  At June 2005
EUR26.4 million, EBITDA were also lower than the amount booked
in June 2004 (EUR30.5 million).

An analysis of the Group's results in the main geographic
regions in which it operates is provided below.

Italy

The results for the first half of 2005 were somewhat lower than
those reported in the same period last year, with revenues
falling from EUR692.0 million to EUR678.2 million (-2.0%) and
EBITDA decreasing from EUR47.3 million to EUR46.1 million (-
2.5%).  The ratio of EBITDA to revenues was unchanged.

While June revenues were down in 2005 compared with June 2004
(EUR113.5 million compared with EUR117.8 million), EBITDA showed
a modest increase from EUR7.3 million to EUR7.4 million.  If the
affiliate Boschi S.p.A. in Extraordinary Administration is
excluded, the performance of the Italian operations improved in
the fist six months of 2005, with revenues up slightly and
EBITDA almost unchanged.

Market data show a modest contraction in the demand for fresh
milk, but the Group increased its share of the UHT segment, due
mainly to gains by the Zymil brand.  The Parmalat and Kyr
product lines performed well in the yogurt segment, despite the
intense competition that characterizes this market. The fruit
juice operations also showed good growth.

Spain

Revenues for the first half of 2005 were down 4.2% to EUR109.5
million (EUR114.3 million in 2004), but EBITDA increased both in
absolute terms (up from EUR7.9 million to EUR8.1 million) and as
a percentage of revenues (up from 7.0% to 7.4%).

In June 2005, net revenues and EBITDA decreased, totaling
EUR21.6 million and EUR1.6 million, respectively (EUR23.3
million and EUR2.0 million, respectively, in 2004), but the
trend showed signs of improvement compared with the earlier
months of the year.

The start of promotional and advertising campaigns for products
that are traditionally affected by seasonal factors (e.g.,
flavored milk beverages) and products that are being launched or
repositioned (e.g., Santal Top fruit juices and Active Soja) had
a positive effect on unit sales, which rose enough to offset the
impact of higher promotional and advertising costs on
profitability.  Nevertheless, the Group's companies in Spain are
still faced with the challenges discussed in previous press
releases, which include an overall decrease in consumer demand
and an extremely competitive market environment (especially in
the yogurt and dessert businesses).

South Africa

In the first six months of 2005, the South African operations
reported significantly better results than in the same period
last year.  Net revenues increased from EUR113.1 million to
EUR134.4 million (+18.8%) and EBITDA jumped 46.2%, rising from
EUR9.3 million (8.2% of revenues) to EUR13.6 million (10.1% of
revenues).

June revenues totaled EUR21.2 million and EBITDA amounted to
EUR2.2 million (10.4% of revenues).  Both revenues and EBITDA
were significantly higher than in June 2004.  

Rising demand from consumers concerned with quality and
wellness, who were responding to a timely increase in
advertising and promotional investments; gains in production
efficiency; and the steadily expanding coverage of the
distribution network caused unit sales to grow in the first half
of 2005 (pasteurized cream was the sole exception) compared with
the same period last year.  A reduction in overhead and the rise
in the value of the South African rand versus the euro (+2.9% at
the average exchange rate for the January-June 2005 period) were
also positive factors. Market share was also up in the fruit
juice, yogurt and cheese segments.

Venezuela

Even though revenues decreased to EUR71.6 million (EUR74.8
million in the first six months of 2004), the profitability of
the Venezuelan operations improved dramatically during the first
half of 2005. EBITDA rose both in absolute terms (from EUR2.1
million to EUR6.1 million) and as a percentage of revenues (from
2.7% to 8.5%).

In June 2005, revenues totaled EUR12.6 million and EBITDA
amounted to EUR0.6 million (4.8% revenues), up from EUR12.1
million and EUR0.4 million, respectively, in June 2004.

While unit sales were down overall compared with the previous
year, a shift in the sales mix contained the decline in
revenues. A reduction in raw material costs and overhead, and
the successful streamlining of the product line account for the
improvement in profitability.  However, promotional expenses
were higher than in the same period last year.  Lastly, it is
important to keep in mind that the data in euros presented in
this press release reflect the negative impact of a slide in the
value of the bolivar (-17.7% compared with the average exchange
rate for the period).

Canada

In the first six months of 2005, revenues increased to EUR599.5
million, or 7.5% more than the EUR557.6 million booked in the
same period last year. EBITDA were also up, rising from EUR35.6
million to EUR45.4 million (+27.5%). As a result, the ratio of
EBITDA to revenues improved from 6.4% to 7.6%.

In June 2005, the Canadian operations reported higher revenues
and EBITDA (EUR99.2 million and EUR10.0 million, respectively)
than in June 2004, when the corresponding figures were EUR93.0
million and EUR8.4 million, respectively.

Steady overall unit sales and a reduction in variable production
costs and overhead are the main reasons for this improved
performance.  The Canadian dollar appreciated versus the euro
during the first six months of 2005, with the average exchange
rate rising by 3.3% compared with the same period in 2004.

Australia

Revenues for the first six months of 2005 grew to EUR193.3
million, up from EUR182.6 million in 2004.  EBITDA were also up,
rising both in absolute terms (from EUR13.8 million to EUR15.0
million) and as a percentage of revenues (from 7.6% to 7.7%).

In June 2005, net revenues totaled EUR32.6 million and EBITDA
increased to EUR2.5 million (EUR2.1 million in June 2004).  
Higher unit sales (especially pasteurized milk and yogurt) and a
shift in the sales mix contributed to these improved results. At
the same time, the launch of new streamlining projects (closure
of two production facilities, exit from unprofitable product
areas and markets and divestiture of non-strategic assets, such
as a Coca-Cola bottling franchise) offset the negative impact of
the higher prices paid for milk and packaging materials during
the first half of 2005.

There was no significant difference between the average exchange
rates for the first six months of 2005 and
2004.

Non-core Businesses

In the first six months of 2005, the Group's Non-core Businesses
reported revenues of EUR125.3 million, a decrease of 22.3% from
pro forma revenues of EUR161.2 million in the same period last
year.

However, even though net revenues were down, chiefly as a result
of the divestiture of the Mexican operations in 2004, EBITDA
improved from a negative EUR15.1 million to a positive EUR11.1
million, due mainly to the successful implementation of cost
cutting programs by the Group's other operations.

Revenues for the month of June were EUR17.8 million and EBITDA
amounted to EUR1.5 million.

Full copy of Parmalat's first half results can be viewed free-
of-charge at http://bankrupt.com/misc/Parmalat(1h2005).pdf.

CONTACT:  PARMALAT FINANZIARIA S.p.A.
          Legal Seat
          43044 Collecchio (Pr)
          Via Oreste Grassi, 26

          Administrative Seat
          20122 Milan
          Piazza Erculea, 9
          Phone: +39 02 806 8801
          Fax: +39 02 869 3863
          Web site: http://www.parmalat.net

                            ***********


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

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

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

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

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

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


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