TCRLA_Public/050801.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Monday, August 1, 2005, Vol. 6, Issue 150

                            Headlines



A R G E N T I N A

AGUAS ARGENTINAS: Govt. Seems Unfazed by Company's Ultimatum
BINARIO S.R.L.: Trustee to Submit Individual Reports
CENTRAL PUERTO: To Seek Shareholders' Opinion on Debt Placement
COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default
DROGUERIA MAGNA: Moody's, Evaluadora Assign Ratings to $5M Bonds

EDITORIAL PERFIL: $25M of Bonds Remain in Default
GRANDES BAZARES: Date Set for Informative Assembly
IND-PA S.R.L.: Submission of General Report Set
INGENIERIA ALFA: Individual Reports to be Submitted Aug. 5
IRSA: Holder Exercises Conversion Right

REPSOL YPF: Net Income Up 25.2% to Eur1.65B in 1H05
SANATORIO MODELO: Date for the Informative Assembly Set
SIRYI S.R.L.: Deadline for General Report Approaches
TALLERES INDUSMAR: Reorganization Concluded


B E R M U D A

FOSTER WHEELER: Amends Offering Materials


B R A Z I L

AES CORP.: Financial Restatement Unlikely to Affect Ratings
BANCO FIBRA: Commences US$50M, 18-Month Bond Issue
NET SERVICOS: Asks CVM to Register 5th Debentures Issuance
NII HOLDINGS: Consolidated Operating Revenues Up 35% in 2Q05
PRIDE INTERNATIONAL: Reports $2.9M Net Loss in 1H05

TELEMAR: Net Revenues Up 8.6% on 2Q05


C H I L E

CELCO: Future of Valdivia Pulp Remains Uncertain


J A M A I C A

DYOLL: Creditors Meeting Sees Appointment of Joint Liquidators


M E X I C O

EMPRESAS ICA: Revenues Up 29% in 2Q05
GRUPO TMM: Revenue Up 21.9% for 2Q05
UNEFON: Boasts of MXN2 Bln Net Profit in 2Q05
VITRO: Bear Stearns Ups Recommendation to Underperform


P E R U

PAN AMERICAN SILVER: Reports Improved Results in Second Quarter


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Committee OKs Bonus Payments

     -  -  -  -  -  -  -  -

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

AGUAS ARGENTINAS: Govt. Seems Unfazed by Company's Ultimatum
------------------------------------------------------------
Argentine Planning Minister Julio De Vido said Thursday
authorities have received from Buenos Aires water utility Aguas
Argentinas a letter that gives the government 30 days to resolve
stalled negotiations over a new contract, reports Dow Jones
Newswires.

But according to De Vido, the future of the French utility
Suez's unit depends on what the government decides.

"We're analyzing a note from Aguas Argentinas, but the one who
gives the deadlines is the one who grants the concession - not
the concessionaire," De Vido said.

Many believe that Aguas Argentinas' letter is the first step in
a formal process of withdrawing from the concession. Under a
clause in which the Company can rescind the contract if the
government refuses to increase water rates within 30 business
days, Aguas Argentinas could request the rate hike and then pull
out in early September.

When asked if the government is prepared for a Suez departure,
De Vido said "mechanisms have always been in place because this
is a functioning state."


BINARIO S.R.L.: Trustee to Submit Individual Reports
----------------------------------------------------
Trustee Roberto Fernando Caoa will submit individual reports on
the creditors' validated claims against Binario S.R.L. on Sep.
5, 2005. The trustee had stopped the validation on July 29,
2005.

After the submission of the individual reports, Mr. Caoa will
then prepare the general report and present it to court on Feb.
28 next year.

Mendoza-based Binario S.R.L. began liquidating its assets
following the city's civil and commercial Court No. 2 declared
the Company "Quiebra".

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

CONTACT: Mr. Roberto Fernando Caoa, Trustee
         Santa Cruz 470
         Ciudad de Mendoza (Mendoza)


CENTRAL PUERTO: To Seek Shareholders' Opinion on Debt Placement
---------------------------------------------------------------
Electricity generator Central Puerto will ask to meet with
shareholders next month to discuss a plan to issue US$150
million in bonds overseas, says Dow Jones Newswires.

The Company, which is majority controlled by French-based Total,
didn't say how it plans to use the funds raised in the debt
placement.

At the meeting, Central Puerto also plans to update shareholders
on its debt restructuring. The Company stopped payments on
obligations in February 2002 and has a debt of about US$300
million that needs to be restructured.


COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default
--------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintained its
'D' rating on the US$47 million bond issued by Colorin Industria
de Materiales Sintet.

Comision Nacional de Valores (CNV), Argentina's securities
regulator, reports that the action was based on the Company's
financial status as of March 31, 2005.

Moody's assigns `D' ratings to bonds that are in payment default
and have a poor prospect of repaying all obligations. The bond
issue, described as `Obligaciones Negociables', will mature on
March 31, 2006.

CONTACT: Colorin Industria de Materiales Sinteticos S.A.
         Av del Libertador 7400
         Buenos Aires


DROGUERIA MAGNA: Moody's, Evaluadora Assign Ratings to $5M Bonds
----------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintained a
'C' rating on a total of US$5 million of corporate bonds issued
by Argentine Company Drogueria Magna S.A. The rating denotes
that the bonds possess a risk of nonpayment.

At the same time, Evaluadora Latinoamericana S.A. Calificadora
de Riesgo assigned a `C' rating on the same issue, which the CNV
described as "Obligaciones Negociables Simples". The bonds,
classified under "Simple Issue," matured on April 17, 2003.

The rating agencies' actions were based on the Company's
financial status as of April 30, 2005.


EDITORIAL PERFIL: $25M of Bonds Remain in Default
-------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on US$25 million worth of corporate bonds issued by
Argentine Company Editorial Perfil S.A., the CNV reveals in its
Web site. The Company's finances as of March 31, 2005 led to the
action taken by Moody's.

The rating, given to bonds that are in payment default, applies
to bonds called "Primera serie de Obligaciones Negociables" and
were classified under "Series and/or Class." The maturity of the
bonds was not disclosed.


GRANDES BAZARES: Date Set for Informative Assembly
--------------------------------------------------
San Miguel de Tucuman-based company Grandes Bazares del Norte
S.A. will present a settlement proposal to its creditors in an
informative assembly to be held on Oct. 25, 2005, reports
Infobae. The said assembly is the final stage of reorganization
where the creditors will vote on the presented proposal.

The Company began reorganization after the city's civil and
commercial Court No. 4.

CONTACT: Grandes Bazares del Norte S.A.
         San Miguel de Tucuman
         Tucuman


IND-PA S.R.L.: Submission of General Report Set
-----------------------------------------------
The submission of the general report on the Ind-Pa S.R.L.
bankruptcy case will be on Aug. 30, 2005, according to Infobae.

The source adds that court-appointed trustee Hugo Roberto Romano
had stopped accepting creditors' claims on May 18, 2005. These
claims served as the basis of the individual reports which the
trustee submitted on July 1, 2005.

The liquidation pronouncement effectively took place after Court
No. 1 of San Miguel de Tucuman's civil and commercial tribunal
declared the Company bankrupt. The Company's affairs as well as
its assets were placed under the control of Mr. Romano.

The bankruptcy case will end with the disposal of the Company's
assets in favor of its creditors.

CONTACT: Mr. Hugo Roberto Romano, Trustee
         Lamadrid 532
         San Miguel de Tucuman (Tucuman)


INGENIERIA ALFA: Individual Reports to be Submitted Aug. 5
----------------------------------------------------------
The individual reports on the submitted claims of the creditors
of Ingenieria Alfa S.R.L. will be presented to Court No. 8 of
San Miguel de Tucuman's civil and commercial tribunal for
approval on August 5, 2005. The court-appointed trustee Luis
Marcelo Schiavone is tasked to prepare these reports after the
claims authentication, which lasted until June 2, 2005.

Infobae reveals that Mr. Schiavone is also required by the court
to submit a general report, which will contain an audit of the
Company's accounting and business records. This report is due on
Sep. 30, 2005.

CONTACT: Mr. Luis Marcelo Schiavone, Trustee
         Libertad 764
         San Miguel de Tucuman (Tucuman)


IRSA: Holder Exercises Conversion Right
---------------------------------------
Inversiones y Representaciones S.A. (IRSA) informed the Bolsa de
Comercio de Buenos Aires and Comision Nacional de Valores on
July 27, 2005 that a holder of the Company's Convertible Notes
exercised its conversion right.

The financial indebtedness of the Company shall be reduced in
US$ 700,000 and an increase of 1,284,403 ordinary shares face
value pesos 1 each was made.

The conversion was performed according to terms and conditions
established in the prospectus of issuance at the conversion rate
of 1.83486 shares, face value pesos 1 per Convertible Note of
face value US$ 1.

As a result of that conversion the amount of shares of the
Company goes from 358,087,853 to 359,372,256. On the other hand,
the amount of registered Convertible Notes is US$ 57,325,564.

CONTACT: IRSA Inversiones y Representaciones S. A.
         Alejandro Elsztain, Director
         Gabriel Blasi, CFO
         Tel: +011-5411 4323-7449
         E-mail: finanzas@irsa.com.ar


REPSOL YPF: Net Income Up 25.2% to Eur1.65B in 1H05
---------------------------------------------------
Repsol YPF announced Thursday that its net income in first half
2005 was up 25.2% year-on-year to EUR1,650 million, the best
ever achieved by the Company.  Income from operations rose 31.7%
to EUR2,923 million.  Cash flow reached EUR3,022 million,
jumping 67.3% year-on-year, proving the company's financial
strength and large capacity for cash generation.

First half income from operations was considerably higher in all
business areas, particularly in chemicals with 151% growth, and
refining which rose 77.5%.  Performance from exploration &
production improved 7.1%, and gas & power improved 32.4%.

These first half 2005 results were achieved in a scenario of
high international oil prices and a gradual recovery of the
dollar against the euro. The company's refining margin indicator
was $7.94 per barrel, 76.4% above that for first half 2004.  In
chemicals, international margins on our product mix were wider
than the year before, while gas and power benefited from good
performance on the international front, and earnings growth from
distribution and power operations in Spain.

Sharp reduction in debt

Repsol YPF net debt at the end of first half 2005 stood at
EUR5,108 million, EUR758 million lower than in June 2004. The
majority of this reduction came from the strong cash flow
generated in the period, which was sufficient to finance
investments and the dividend payout in January, while offsetting
the effect of dollar revaluation.  The net debt to
capitalisation ratio fell to 21.5%, posting a near 5 percentage
point drop with respect to June 2004.

Investments in first half 2005 were EUR1,363 million, down 10.3%
from the same period in 2004, and were mostly spent in
exploration & production (EUR555 million) and refining &
marketing (EUR459 million).

BUSINESS AREAS

Exploration & Production:  income from operations up 7%

At EUR1,374 million, income from exploration & production
operations in first half 2005 was 7.1% higher than the EUR1,283
million posted in the same half a year earlier.

This growth was mainly driven by the increase in crude oil
reference prices and gas realisation prices in Trinidad & Tobago
and Argentina.  Gas production and sales growth in Bolivia,
Trinidad & Tobago, and Venezuela also contributed.

The Repsol YPF liquids realisation price averaged $33.26
(EUR27.13) per barrel versus $28.88 (EUR23.56) per barrel in
first half 2004.  The average price of gas in the quarter was
$1.46 per thousand standard cubic feet (tscf), 23.7% up year-on-
year, versus the $1.18 per tscf registered in 2004, shored up by
higher average gas prices in Argentina and an increase in sales'
volume in Trinidad & Tobago.

The company's average oil and gas production for the six months
rose 0.3% year-on-year, to 1,155,800 boepd.  Gas showed a
production increase of 6.9%, to 613,800 boepd (3,447 Mscf/d),
with enhanced production mostly from Bolivia, Trinidad & Tobago,
and Venezuela.

First half 2005 investments in the exploration & production
business area were EUR555 million.  Investment in development
represented 73% of total investment, and was spent mainly in
Argentina (67%), Venezuela (7%), Trinidad & Tobago (7.3%),
Bolivia (5.2%), Ecuador (3.4%), and Libya (2,1%).

Refining & Marketing: income from operations rises 77%

Income from operations in the refining & marketing area was up
77.5% year-on-year at EUR1,354 million.  This performance is
mainly attributable to a 76.4% improvement in the company's
refining margin.  Marketing margins in Spain were slightly down
against the first half 2004, and were lower still in Argentina
because it was not possible to pass the full rise in
international feedstock prices through to the end customer.

Total oil product sales increased 7.5% to 28.4 million tons.
Sales in Spain, at over 16.7 million tons, were 4.5% higher
year-on-year, and in Argentina, Brazil, and Bolivia (ABB) rose
4.2% to nearly 7.6 million tons.  In the rest of the world,
sales showed 30.6% growth, reaching 4.1 million tons, primarily
due to the purchase of Shell's assets in Portugal.

Turning to the LPG business, total sales reached 1,739 tons.  In
Latin America, sales were 1.3% higher year-on-year thanks to
strong growth in Ecuador and good performance in Chile.  Sales
in Spain dropped 4% because of warmer weather, the development
of other energies (mainly electricity and natural gas), and
competition within the sector.

First half-year 2005 investments in refining & marketing
amounted to EUR459 million against EUR386 million in the same
period a year earlier, and were mainly allotted to current
refining projects and the acquisition of Shell's LPG assets in
Portugal.

Chemicals: income from operations jumps 151%

In Chemicals, income from operations in the first six months of
2005 improved 151% year-on-year to EUR241 million, versus EUR96
million in the same period a year earlier. Strong performance
here came from wider international margins on our product mix
and the income contribution from the recently acquired Sines
complex in Portugal.

Total petrochemical product sales reached 2,168 thousand tons,
12% more than the 2004 equivalent.

Investments in the Chemical area totaled EUR45 million, 28.6%
up on first quarter 2004, and were mainly spent on increasing
capacity, particularly at the propylene oxide/styrene plant in
Tarragona, and in upgrading existing units.

Gas & Power: income from operations rises 32%

Income from Gas & Power operations in first-half 2005 rose 32.4%
to EUR196 million, versus the EUR148 million recorded in first-
half 2004.  This increase basically reflects capital gains
realised on the sale of Enagas shares and earnings growth in Gas
Natural SDG, as well as Enagas.

Earnings growth in Gas Natural SDG stemmed from improvement in
gas distribution in Spain and Latin America, with exceptionally
good performance in international activities, procurement and
international transport, and the power business in Spain.

In Latin America, income growth came from changes in the scope
of consolidation in Brazil and the organic growth of activities
in Mexico, Colombia and Brazil.

January-June 2005 investment in gas & power was EUR257 million
versus EUR478 million in the same period last year.

ANNEX

Highlights

We would like to highlight the following events that have arisen
during 2005:

- In February last, Repsol YPF entered an agreement with the
Dutch company, Basell, to acquire 50% of the latter's stake in
Transformadora de Propileno A.I.E., including a polypropylene
plant at the Tarragona Petrochemical Complex, with a 160,000
tons/year capacity, in which Repsol already holds the other 50%.
This transaction boosts Repsol YPF's polypropylene capacity by
15%, thus increasing its presence in the polyolefin business in
Europe, and represents a further step forward in one of the
company's core strategic lines for growth.

- In Venezuela, last March Repsol YPF's Chairman and Chief
Executive Officer, Antonio Brufau, and Venezuela's Minister of
Energy and Mining, and Chairman of PDVSA, Rafael Ram­rez, signed
a series of strategic agreements that will heighten the
company's presence in the region. The first of these agreements
contemplates the creation of a joint venture between PDVSA (51%)
and Repsol YPF (49%), the first of its kind in Venezuela,
granting rights for the exploration and production of
hydrocarbons in the areas where its activities are currently
being developed (Mene Grande, Quiriquire, and Quiamare- la
Ceiba), and in other areas nearby.

- Yet another agreement would allow Termobarrancas (a Repsol YPF
subsidiary in that country) to construct, develop and operate an
electricity generation plant in the state of Barinas.  As a
result of this contract, PDVSA would buy from Repsol YPF blocks
of electricity of up to 300 megawatts/hour. Production could
begin in the final quarter of 2005, with an estimated production
of 80 megawatts. The gas to feed the plant will be supplied from
one of the fields that Repsol YPF has in the Barrancas area.

- Also in March, Repsol YPF's Chairman and Chief Executive
Officer, Antonio Brufau, and ChevronTexaco's Chairman and Chief
Executive Officer, David O'Reilly, signed a Letter of Intent
proposing to the Ministry of Energy and Petroleum and the
national oil company of Venezuela, PDVSA, the joint development
of an exploration block on the Orinoco Belt and the construction
of a refinery for upgrading of the crude oil produced there.

- Repsol YPF and Gas Natural SDG, on 29 April concluded an
agreement for Liquefied Natural Gas (LNG) projects, including
the exploration, production, and liquefaction of natural gas
reserves.  This agreement will grant both companies access to
new markets under more favourable conditions. In the
exploration, production, and liquefaction (upstream) area, the
agreement contemplates joint association for the development of
new projects in which Repsol YPF, will be operator with a 60%
stake, and Gas Natural SDG will hold the remaining 40%.

In transport, trading, and wholesale marketing (midstream)
activities, pursuant to the agreement, both companies will
create a 50-50% joint venture for the wholesale and transport of
LNG.  This new company will be the third-largest player in
global markets in terms of volume of LNG handled, immediately
following KOGAS and Tokyo Electric.

- On 31 May, Repsol YPF's chairman, Antonio Brufau, presented
the 2005/2009 Strategic Plan to analysts, shareholders,
institutional investors, and employees.  This plan outlines the
Company's main lines of action for the mentioned period and is
based on four key factors: growth in the upstream and LNG areas,
strong cash generation in the downstream and ABB units,
transformation of the asset portfolio, and cost savings, all of
which will contribute to ensuring sustained dividend growth for
shareholders, with a 20% higher dividend in 2006.

- Repsol YPF and Irving Oil Limited entered on 7 June an
agreement to develop the first LNG regasification plant on the
east coast of Canada, forming a new company, Canaport LNG, which
will construct and operate the terminal and supply markets in
the surrounding area, as well as the northeast coast of the
United States.  The Canaport terminal will initially be capable
of delivering 10 Bcm per year of LNG to the market.  Repsol YPF
will supply the natural gas to feed the terminal and hold a
contract for 100% of the plant's regasification capacity.  The
regasification plant will go on stream and distribute natural
gas to the market from 2008 onwards, and Repsol YPF will market
the regasified LNG mostly in the USA.

- Also in June, Repsol YPF signed a Memorandum of Understanding
with Hunt Oil for developing the Peru LNG project.  This project
consists of a Hunt Oil and SK Corporation joint venture for
building and operating a liquefaction plant in Pampa Melchorita
(Peru).  The plant, expected to be operational in 2009, will
produce 4 million tons per year of LNG for sale on the west
coast of North and Central America.  The Peru LNG project will
be fed by natural gas from block 88 and block 56 of the Camisea
field, in which Repsol YPF will also have a stake.  This MOU
also contemplates Repsol YPF taking a stake in Transportadora de
Gas del Peru SA (TGP), the company that delivers natural gas
from the Camisea area via the trans-Andean pipeline.

- In addition, on 16 June, Moody's international rating agency
upgraded Repsol YPF issuer rating to Baa1 from Baa2, based on
the company's solid financial profile, management's stated
strategy to broaden the group's asset diversification, sustained
strong positions and cash generation from the group's Spanish
refining and marketing business, and gradual improvements in
Argentina's operating environment.

- Repsol YPF, with a 15% stake, will invest $130 million in the
start-up of the Neptune deepwater field in the Gulf of Mexico.
Neptune will have a maximum production capacity of 50,000
barrels of oil and 50 million cubic feet of gas per day, with
gross costs for the development estimated at some $850 million.
Recoverable reserves at the field are estimated in a range from
100 million to 150 million boe.  First oil is expected by the
end of 2007.

- On 5 July 2005, as approved at the company's last Annual
General Shareholders Meeting held on 31 May 2005, Repsol YPF
paid a gross complementary dividend of Eu0.25 per share against
the 2004 financial year.

- Finally, Repsol YPF has become one of the main oil and gas
producers in the Caribbean on exercising a call option for the
purchase from BP of three oil fields and one gas field in
Trinidad & Tobago, for a price of $229 million.  The Trinidad &
Tobago State oil company, Petrotrin, is expected to purchase a
15% stake in the fields.  The transaction is subject to approval
by the Government of Trinidad & Tobago.  The three oil fields,
Teak, Samaan and Poui, currently produce 20,500 barrels of oil
equivalent per day.  The 3P-risked reserves for the fields are
estimated at 174 million barrels of oil equivalent.  Investment
in the oil fields and the development of the gas field will be
around $500 million up to the year 2025.

To see Repsol YPF Summarised Income Statement:
http://bankrupt.com/misc/REPSOL_YPF.htm

CONTACT: Repsol YPF, S.A.
         Paseo de la Castellana 278
         Madrid, 28046
         Spain
         Phone: 34-1-348-8100
         Website: http://www.repsol.com


SANATORIO MODELO: Date for the Informative Assembly Set
-------------------------------------------------------
The informative assembly for the Sanatorio Modelo S.A.
insolvency case will be on Dec. 13, 2005.

Infobae relates that the Company will endorse the settlement
proposal, drafted from the submitted claims, for approval by the
creditors during the assembly.

Sanatorio Modelo S.A. successfully petitioned for
reorganization, which was approved by Court No. 7 of San Miguel
de Tucuman's civil and commercial tribunal.

Under insolvency protection, the Company continues to manage its
assets subject to certain conditions imposed by Argentine law
and the oversight of a court-appointed trustee.


CONTACT: Sanatorio Modelo S.A.
         San Miguel de Tucuman
         Tucuman


SIRYI S.R.L.: Deadline for General Report Approaches
----------------------------------------------------
The deadline for the submission of the general report of the
Siryi S.R.L. bankruptcy will be on Aug. 4, 2005, Infobae
reports.

The court-appointed trustee submitted the individual reports on
the verified claims of the Company's creditors on June 23, 2005
as required by Court No. 14 of Rosario's civil and commercial
tribunal.

The court declared Siryi S.R.L. bankrupt after the Company
defaulted on its debt payments. The bankruptcy order effectively
placed the Company's affairs as well as its assets under the
control of court-appointed trustee.

The case will end with the disposal of the Company's assets in
favor of its creditors.

CONTACT: Siryi S.R.L.
         Cordoba 1452
         Rosario (Santa Fe)


TALLERES INDUSMAR: Reorganization Concluded
-------------------------------------------
Buenos Aires-based company Talleres Indusmar 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. 11, with assistance from Clerk No. 22,
homologated the debt plan signed between the Company and its
creditors.

CONTACT: Talleres Indusmar S.A.
         Buenos Aires



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

FOSTER WHEELER: Amends Offering Materials
-----------------------------------------
Foster Wheeler Ltd. (NASDAQ:FWLT) filed Thursday an amended
Schedule TO together with Supplement No. 1 to the Offer to
Exchange, which sets out additional information which may be of
interest to holders considering participation in the exchange
offer. Importantly, the terms of the exchange offer remain
unchanged.

Foster Wheeler delivered an Offer to Exchange dated June 30,
2005 and other documentation relating to the exchange offer to
holders of trust securities, and on June 30, 2005 filed the
Offer to Exchange and other documentation with the Securities
and Exchange Commission as part of a Schedule TO.

A copy of the Offer to Exchange, Supplement No. 1 to the Offer
to Exchange and other documents relating to this exchange offer
may be obtained from Morrow & Co, Inc., the Information Agent
for this exchange offer. Morrow's telephone number for bankers
and brokers is 800-654-2468 and for all other security holders
is 800-607-0088. Contact the Information Agent with any
questions on the exchange offer.

Investors and security holders are urged to read the Schedule
TO, as amended, and the Offer to Exchange, as supplemented by
Supplement No. 1, relating to the exchange offer as these
documents contain important information. These documents and
other documents relating to the exchange offer may be obtained
free at the SEC's website at www.sec.gov, or from the
Information Agent as noted above.

The foregoing reference to the exchange offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer
to sell or exchange any securities in Foster Wheeler Ltd. or any
of its subsidiaries.

Foster Wheeler, as previously announced, has launched an
exchange offer pursuant to which it is offering to exchange 2.16
of its common shares, par value $.01, for each of the 9.00%
Preferred Securities, Series I issued by FW Preferred Capital
Trust I (liquidation amount $25 per trust security) and
guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC,
including accrued dividends, that is tendered in the exchange
offer and not withdrawn. The exchange offer will expire at 5:00
p.m. New York City time on July 29, 2005, unless extended.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         Media
         Maureen Bingert
         Phone: 908-730-4444
         Investors
         John Doyle
         Phone: 908-730-4270
         Other Inquiries
         Phone: 908-730-4000
         URL: http://www.fwc.com



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

AES CORP.: Financial Restatement Unlikely to Affect Ratings
-----------------------------------------------------------
The AES Corporation (AES) today announced that it intends to
restate its financial statements for the years 2002 to 2004 and
first quarter 2005 to resolve a previously announced material
weakness in its accounting for certain acquisitions completed
prior to 2001. The restatement stems from a material weakness
identified in the company's 2004 10-K filing and relates to
items such as deferred tax balance and other comprehensive
income. Fitch notes that the restatement is not expected to
affect debt, interest expense, or cash flow from operations, the
most important elements in Fitch's quantitative assessment of
AES. AES has implemented improvements in its financial control
systems, and the restatement is a part of this process.
Accordingly, Fitch views it as unlikely that the restatement
will adversely affect the company's creditworthiness.

AES is a leading global power company, with operations in 27
countries, generating 44,000 megawatts of electricity through
124 power facilities and delivers electricity through 15
distribution companies.

CONTACT:  Jonathan Cho +1-212-908-0842, New York
          Ellen Lapson +1-212-908-0504, New York

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


BANCO FIBRA: Commences US$50M, 18-Month Bond Issue
--------------------------------------------------
Sao Paulo-based bank Banco Fibra has launched an issue of US$50
million in overseas bonds denominated in Brazilian reals
($1=BRL2.415), reports Dow Jones Newswires. The 18-month bonds
are expected to place at an annual yield between 17.7% and
17.95%. Unibanco is coordinating the offer.

Banco Fibra was created in 1987 by the family of Benjamin
Steinbruch, the chief executive of Brazil's flat-steel maker
Companhia Siderurgica Nacional (SID). The bank manages the
financial side of steel company Vicunha Siderurgica SA
(VINE5.BR), controlled by Steinbruch.


NET SERVICOS: Asks CVM to Register 5th Debentures Issuance
----------------------------------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq: NETC; Bovespa: NETC4
and NETC3; and Latibex: XNET) the largest Pay-TV multi-service
operator in Latin America, and an important provider of bi-
directional broadband Internet access (Virtua), informs that on
July 28, 2005, the Company requested to CVM the register for its
5th debentures issuance.

Through this issuance, the Company aims to replace the current
outstanding debt resulting in longer maturity, foreign exchange
risk elimination and removal of certain existing obligations,
which could limit its growth in a more stable operational
scenario.

CONTACT:  Net Servicos de Comunicacao S.A.
          Marcio Minoru
          Tel: +5511-2111-2811
          E-mail: minoru@netservicos.com.br

          Sandro Pina
          Tel: +5511-2111-2721
          E-mail: sandro.pina@netservicos.com.br


NII HOLDINGS: Consolidated Operating Revenues Up 35% in 2Q05
------------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Thursday its
consolidated financial results for the second quarter of 2005.
The Company reported consolidated operating revenues of $411
million, a 35% increase as compared to the second quarter of
2004, and consolidated operating income before depreciation and
amortization (OIBDA) of $119 million, a 45% increase as compared
to the same period last year.

The Company added about 135,350 net subscribers to its network
during the quarter, an increase of 22% over the second quarter
of 2004, resulting in over 2.1 million subscribers as of June
30, 2005. The Company generated consolidated operating income of
$89 million during the quarter; a 54% increase over the second
quarter of 2004. The Company reported second quarter
consolidated net income of $31 million, or $0.43 per basic
share, which included a debt conversion expense of $9 million,
or $0.13 per basic share, related to the conversion of
approximately $89 million of the Company's 3.5% convertible
notes due 2033, partially offset by a one-time benefit of $3
million, or $0.04 per basic share, related to an interconnect
expense settlement in Brazil. Net income for the quarter
includes higher non-cash deferred tax expenses related to stock
options. NII Holdings ended the second quarter of 2005 with $556
million in consolidated cash, cash equivalents and short-term
investments.

"NII's performance over the first half of 2005 has been far
better than we originally anticipated and the opportunities for
the Company are continuing to improve," said Steve Shindler, NII
Holdings' Chairman and CEO. "We are accelerating our growth and
scaling our business in our largest markets, while remaining
true to our focus on profitability. Given the positive trends in
our business, along with an improved outlook in Brazil, we are
accelerating our expansion plans and raising full year guidance
for 2005."

NII Holdings' average monthly revenue per subscriber (ARPU) rose
to $58 for the second quarter, a $3 increase as compared to the
second quarter of 2004. The Company also reported churn of 1.8%
for the second quarter - in line with the same period last year,
and consolidated cost per gross add, or CPGA, of $339 for the
quarter.

"Our differentiated products and services continue to grow in
popularity and are gaining wider acceptance as we grow our
business," said Lo van Gemert, NII Holdings President and COO.
"Subscriber growth was extremely strong in the quarter, driven
by solid year-over-year net subscriber additions in Brazil and
Mexico. As promised, consolidated ARPU increased by $3 as
compared to the previous year, driven by a $3 and $9 lift in
ARPU in Mexico and Brazil respectively, resulting in a 35%
increase in total revenues as compared to the same period last
year. We are accelerating growth, improving our operating
metrics across the board, and improving our efficiency leading
to healthy increases in operating cash flow."

2005 Expansion Plans

The Company announced progress on its expansion plans in both
Mexico and Brazil. In Mexico, the Company has successfully
launched three cities in the first half of the year,
representing over 3 million additional pops, including the
launch of Ciudad Juarez in July. The Company also announced that
it is accelerating its 2005 expansion plan in Mexico to include
areas in the Yucatan Peninsula - including Cancun and Cozumel -
as well as other cities adjacent to Monterrey. Nextel Mexico's
2005 expansion plan will position the Company to cover over 6
million additional pops, resulting in a total population
coverage of over 47 million, or 70% of the GDP in Mexico. In
Brazil, the Company has launched two additional cities in the
first half of the year, Sorocaba and Goiania. Because of an
improved regulatory environment and strong growth potential, the
Company has announced that it is accelerating its 2005 expansion
plans in Brazil to include additional cities and to expand
capacity in existing markets. This accelerated plan will bring
Nextel Brazil's total pop coverage to about 56 million, or
nearly 50% of GDP in Brazil. In total, the expansion plans in
Mexico and Brazil will add over 20 million covered pops to NII
Holding's network.

"Expanding in our largest and most profitable markets improves
our competitive position, expands the number of potential
subscribers for our business, and positions NII Holdings to
realize the benefits of scale," said van Gemert. "We launched
Ciudad Juarez in July. Juarez is located in the border area with
El Paso, Texas and Nuevo Laredo, Mexico and is home to about 1.5
million pops and over 7,200 businesses. Juarez generates a
significant amount of cross-border traffic; thus, we are
confident that International Direct Connect will also be a very
popular application in this market. We remain ahead of our
original expansion plan for 2005 and we are accelerating our
build plan to include service in the Yucatan Peninsula --
including Cancun -- by year end."

The Company added about 176 cell sites to its network during the
quarter. Consolidated capital expenditures, including
capitalized interest, were $119 million during the second
quarter of 2005.

Amendments to SME Regulations in Brazil

On May 16, 2005, the Brazilian National Communications Agency
("ANATEL") published in the Official Gazette the amendments to
the SME Regulations that, among other things, have the effect of
treating Nextel Brazil on the same basis with respect to billing
for use of other mobile networks as other Brazilian wireless
operators currently have in place. These regulations became
effective upon publication and resulted in significant
interconnect expense savings for approximately half of the
second quarter.

"The regulatory changes implemented by Anatel place Nextel
Brazil on a more level playing field with the other wireless
carriers. This is a positive development for our Company as it
further improves our cost structure and creates additional
growth opportunities within the Brazilian market. This
regulatory change enables Nextel Brazil to accelerate both its
subscriber and cash flow growth. Given this new environment, we
are incrementally accelerating our expansion plan in 2005,"
Shindler said.

Balance sheet

The Company ended the quarter with approximately $769 million in
long-term debt, which includes $392 million in convertible
notes, the $242 million long- term portion of a $250 million
syndicated loan facility the Company closed on May 31, 2005,
$123 million in local currency tower financing obligations and
$12 million in capital lease obligations. During the second
quarter, the company induced the conversion of $89 million of
its 3.5% convertible notes into shares of its common stock,
resulting in a $9 million debt conversion expense. With quarter-
end consolidated cash, cash equivalents and short-term
investments of $556 million, the Company's net debt at the end
of the quarter was $213 million, resulting in a net debt to 2005
operating income before depreciation and amortization guidance
of about 0.4 times.

Raising 2005 Guidance

Because of the strong growth and positive trends in the first
half of the year, NII Holdings is raising its 2005 guidance as
follows:

- Raising 2005 net subscriber guidance to 525,000 net subscriber
additions - an increase of 50,000

- Despite the increase in subscriber growth, the Company is
raising its OIBDA guidance to $475 million - a $25 million
increase.

- Related to the accelerated expansion plan in 2005 and adding
additional capacity for more growth in 2005 and 2006, the
Company is raising its capital expenditures guidance for 2005 to
$425 million, up from $350 million.

The above guidance includes approximately $25 million of
additional operating expenses and about $170 million of
additional capital expenditures related to the expansion plans
in Mexico and Brazil in 2005. If completed in 2005, the
Company's covered pops in Mexico will increase by over 6 million
to 47 million, increasing Nextel Mexico's GDP coverage to 70%.
Additionally, Brazil's covered pops will increase to about 56
million pops, representing 50% of the GDP.

"With our strong subscriber and cash flow growth through the
first half of 2005, our improving position in the Latin American
wireless market, and the positive trends in our industry, NII is
well positioned to accelerate its expansion plan, achieve its
raised guidance for 2005, and improve the opportunity for 2006
and beyond. Although it's too early to provide full year
guidance for 2006, as we look at our business with an
accelerating growth rate, expanding network footprint, and
rapidly growing wireless market, I am confident that we will add
substantially more net subscriber additions to our network in
2006 than we will deliver in 2005," Shindler said.

In addition to the preliminary results prepared in accordance
with accounting principles generally accepted in the United
States (GAAP) provided throughout this press release, NII has
presented consolidated OIBDA, ARPU, CPGA, consolidated cash,
cash equivalents and short-term investments, net debt, and net
debt to OIBDA, which are non-GAAP financial measures and should
be considered in addition to, but not as substitutes for, the
information prepared in accordance with GAAP. Reconciliations
from GAAP results to these non-GAAP financial measures are
provided in the notes to the attached financial table.

NII Holdings, Inc., a publicly held company based in Reston,
Va., is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connect(R), a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

To see financial statements: http://bankrupt.com/misc/NII.htm

CONTACT: NII Holdings
         Investor Relations
         Tim Perrott
         Phone: (703) 390-5113
         E-mail: tim.perrott@nii.com

         Media Relations
         Claudia E. Restrepo
         Phone: (786) 251-7020
         E-mail: claudia.restrepo@nii.com

         URL: http://www.nii.com


PRIDE INTERNATIONAL: Reports $2.9M Net Loss in 1H05
---------------------------------------------------
Pride International, Inc. (NYSE: PDE) reported net earnings and
income from continuing operations for the second quarter of 2005
of $2.1 million ($.01 per diluted share) on revenues of $477.4
million. For the same period in 2004, Pride reported net income
of $3.0 million ($.02 per diluted share) and income from
continuing operations of $8.2 million ($.06 per diluted share)
on revenues of $424.0 million. For the six-month period ended
June 30, 2005, Pride reported net earnings and income from
continuing operations of $18.4 million ($.12 per diluted share)
on revenues of $943.5 million. For the corresponding six-month
period in 2004, Pride reported a net loss of $2.9 million ($.02
per diluted share) and income from continuing operations of
$12.9 million ($.09 per diluted share) on revenues of $827.7
million.

Results for the second quarter of 2005 were affected by items
totaling $17.1 million, net of tax, which reduced earnings per
share by $.11. The items included, net of tax, a loss on sale of
assets of $8.2 million, executive severance charges of $8.1
million, and $0.8 million related to the early retirement of
debt. The severance charges relate to several executive
management changes, including the Company's Chief Executive
Officer, as previously announced.

Debt Reduction

As of June 30, 2005 total debt outstanding, including debt due
within one year, was approximately $1.26 billion. The Company
reduced debt during the second quarter of 2005 by approximately
$390 million and by approximately $474 million during the six
months ended June 30, 2005. The debt reduction includes the
conversion to equity of the Company's $300 million 2.5% senior
convertible notes in March and April 2005.

Asset Sales

In the second quarter of 2005, the Company agreed to sell two
tender- assisted rigs, the Piranha and Ile de Sein, and four
idle land rigs for total proceeds of approximately $75 million.
The Company has completed the sale of the two tender-assisted
rigs and expects to close on the sale of the land rigs by the
end of the third quarter of 2005. The Company received proceeds
and deposits from these sales during the second quarter totaling
approximately $48 million. In July 2005, the Company received
additional proceeds of approximately $25 million related to
these transactions.

Operations

Worldwide demand remained strong for the Company's drilling rigs
during the second quarter of 2005. However, planned shipyard
maintenance and mobilization of eight major assets, as well as
unplanned downtime on two deepwater rigs, negatively impacted
operating income during the quarter. In addition, the Company
recorded pre-tax losses on asset sales and executive severance
charges of $13.4 million, resulting in consolidated operating
income of $49.3 million. Excluding losses on asset sales and
executive severance charges, consolidated operating income of
$62.7 million in the second quarter increased 7.7% over the
first quarter of 2005, despite the operating factors during the
quarter.

In the U.S. Gulf of Mexico segment, operating income for the
quarter of $14.6 million improved $7.1 million, or 95%, over the
first quarter of 2005 due primarily to improved dayrates.
Average daily revenues per jackup during the second quarter of
2005 increased to $43,400, up from $38,200 during the first
quarter of 2005 and $30,000 during the second quarter of 2004.
All of the Company's 10 jackups located in the U.S. Gulf of
Mexico are operating under contract, as the Company activated
its remaining two jackups during the quarter.

For the Eastern Hemisphere segment, operating income in the
second quarter was $31.9 million compared with $40.0 million in
the first quarter. Excluding net gains and losses on asset sales
in both quarters, operating income of $34.5 million in the
second quarter increased $5.5 million, or 19%, from the first
quarter of 2005 due to the start up of three previously idle
rigs and increased dayrates, partially offset by the planned
shipyard survey and maintenance of the ultra-deepwater drillship
Pride Angola, the deepwater semisubmersible Pride South Pacific,
and the accommodation jack-up Pride Rotterdam.

Operating income for the Western Hemisphere segment of $7.9
million declined $9.4 million from the first quarter, primarily
due to the planned shipyard survey and maintenance of the
semisubmersible Pride South America and approximately 55 days of
combined unplanned downtime for maintenance and repairs for the
semisubmersibles Pride Carlos Walter and Pride South Atlantic.

The Latin America Land segment's operating income of $13.2
million was flat sequentially, as strong demand continued
throughout the region, and activity in Argentina maintained
record levels. For the six month period ended June 30, 2005, the
Latin America Land segment's operating income of $26.8 million
increased $21.0 million, or 364%, over the year-ago period.

In the E&P Services segment, operating income of $7.1 million
increased $1.3 million, or 23%, from the first quarter of 2005,
reflecting continued strong market conditions and the completion
of lower-margin projects. For the six months ended June 30,
2005, the E&P Services segment's operating income of $12.9
million increased $8.4 million, or 185%, over the corresponding
six- month period in 2004.

Louis A. Raspino, President and Chief Executive Officer,
commented, "We are pleased with the improvement in results over
the first quarter. However, the results are not nearly as
dramatic as market conditions suggest, due primarily to
significant planned shipyard time for several of our major
assets which continued into the second quarter. We have now
reached the end of a three-quarter period of planned maintenance
on many our largest assets, and we are looking forward to
significant improvement in operating results in the second half
of the year."

Pride International, Inc., headquartered in Houston, Texas, is
one of the world's largest drilling contractors. The Company
provides onshore and offshore drilling and related services in
more than 30 countries, operating a diverse fleet of 288 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 29 jackup rigs, and 18 tender-assisted, barge and platform
rigs, as well as 227 land rigs.

To see financial statements:
http://bankrupt.com/misc/Pride_Intl.htm

CONTACT: Pride International, Inc.
         Robert E. Warren or Steven D. Oldham
         Tel: +1-713-789-1400


TELEMAR: Net Revenues Up 8.6% on 2Q05
-------------------------------------
HIGHLIGHTS OF THE 2Q05

- The Telemar Group customer base increased by 811 thousand in
the quarter and 3.1 million in the past 12 months, to reach 23.7
million customers at the end of Jun/05, comprising:

- Wireline: 15.0 million lines in service (-0.9% on 1Q05)
- Wireless: 8.1 million subscribers (+11.9% on 1Q05)
- Velox (ADSL): 0.6 million subscribers (+15.7% on 1Q05)

- Net revenues amounted to R$ 4,123 million (increasing by 3.0%
on 1Q05 and 8.6% on 2Q04). The quarterly change is mainly due to
the strong growth in mobile and data revenues.

- Average revenue per user (ARPU) in the quarter was R$ 82 for
wireline and R$ 21 for Consolidated EBITDA totaled R$ 1,664
million, compared to R$ 1,669 million in 1Q05 (-0.3%) and R$
1,493 million in 2Q04 (+11.4%).

  - EBITDA margins were as follows:
  - TNL: 40.4% (1Q05 - 41.7%)
  - TMAR: 39.5% (1Q05 - 40.6%)
  - Oi: 10.4% (1Q05 - 20.8%)

  - Net financial expenses amounted to R$ 401 million (+4.1% on
1Q05).

  - Net income for the quarter added up to R$ 204 million (1Q05 -
R$ 193 million), or R$ 0.53 per share (US$ 0.22 per ADR).

  - Net debt reached R$ 7,153 million (1.06x EBITDA for the past
12 months), up 12.1% from the Capital expenditures (Capex)
amounted to R$ 509 million in the quarter, corresponding to
12.3% of net revenues.

  - Free cash flow after Capex totaled R$ 817 million (1Q05 - R$
776 million).

2. OPERATING PERFORMANCE REVIEW

2.1 CUSTOMER BASE

At the end of the quarter, the Telemar Group had 23,719 thousand
customers (+14.9% compared to Jun/04), including 14,966 thousand
fixed-line, 8,112 thousand mobile, and 641 thousand broadband
(ADSL) customers.

2.2 WIRELINE SERVICES

At the end of the quarter, the installed plant comprised 17,110
thousand lines, of which 14,966 thousand were in service
(utilization rate of 87.5%), consisting of 11,716 thousand
residential, 2,617 thousand commercial and 633 thousand public
telephones. During 2Q05, 637 thousand lines were installed and
775 thousand lines were disconnected, with net disconnections of
138 thousand lines (1Q05 - 112 thousand). The average plant in
service totaled 14,997 thousand lines in the quarter (-1.1%).

2.3 BROADBAND SERVICES

ADSL subscribers (Velox) totaled 641 thousand at the end of
2Q05, a 15.7% increase from the previous quarter, with net
additions of 87 thousand in the quarter, 145 thousand in the
first half of 2005 and 296 thousand compared to 2Q04 (+85.8%).
The Velox share in the total fixed lines in service reached 4.3%
(1Q05 - 3.7% and 2Q04 - 2.3%).

Velox is currently offered in 173 cities of Region I.

2.4 WIRELESS SERVICES

Oi reached 8,112 thousand customers (+11.9% on 1Q05), with an
estimated market share of 24.1% in its region (1Q05 - 23.8%).
The customer mix comprised 86% under prepaid and 14% under
postpaid plans.

During the quarter, 1,117 thousand handsets were sold to our
distribution channels (1Q05 - 353 thousand). In the period,
1,310 thousand users were activated and 448 thousand were
disconnected, with net additions of 862 thousand customers (87%
prepaid). Oi accounted for 26.7% of net additions in its region
(1Q05 - 30.2% and 2Q04 - 34.9%).

The average customer base totaled 7,681 thousand (+8.9% on 1Q05
and +61.7% on 2Q04). The churn rate represented 5.8% of the
average subscriber base in 2Q05 (1Q05 - 4.6%). The strong sales
during Christmas period have an impact in disconnections in 150
to 180 days after the sales.

The wireless service penetration rate in Oi's region reached
33.7% (30.5% in 1Q05 and 24.8% in
2Q04).

3. CONSOLIDATED RESULTS

3.1 REVENUES

Gross revenues for the quarter totaled R$ 5,815 million,
increasing 3.2% from 1Q05 as a result of Oi's expansion and the
growth in data services.

In comparison with 2Q04, gross revenues grew by 9.4%, which was
also as a result of higher revenues from mobile and data
services, as well as fixed line rate increases implemented in
the second half of 2004.

Wireless revenues accounted for 11.4% of total gross revenues
for 2Q05, compared to 8.9% in the previous quarter and 9.3% in
2Q04.

Net revenues for the quarter amounted to R$ 4,123 million, up
3.0% on 1Q05 and 8.6% on 2Q04.

The main changes in gross revenue per service are described
below. It should be pointed out that the increase in handset
sales accounted for 71% of the revenue growth from 1Q05.

Wireless revenue composition for the first half of 2005 compared
with the same period of 2004 shows the increasing share of
"outgoing calls", to 36% of total wireless revenues (28% in the
first half of 2004). With the growth in wireless services, the
share of handsets sales decreased from 32%, in the first half of
2004, to 23%.

As for the wireline business, fixed-to-mobile services
(VC1/VC2/VC3) decreased its share to 16% of total gross revenues
from wireline services (1st half of 2004 - 18%). The relative
share decrease can be partly attributed to non implementation of
the rate adjustment scheduled for early February.

3.1.1 Wireline Services

Gross revenues from wireline services remained virtually
unchanged (+0.4%) from the previous
quarter, while increasing by 8.4% compared to 2Q04, as detailed
below.

Local

Local fixed-to-fixed (monthly subscription, pulse, installation
fee): These revenues added up to R$ 2,311 million (-0.9% on 1Q05
and +10.5% on 2Q04).

Monthly subscription fees amounted to R$ 1,614 million, down
1.2% on 1Q05, as a result of the decreased number of lines in
service in the quarter. Compared to 2Q04, revenues increased by
13.9%, primarily due to tariff adjustments introduced in the
second half of 2004.

Revenues from Pulses reached R$ 658 million, basically in line
(-0.3%) with 1Q05. Compared to 2Q04, revenues increased by 4.9%,
as a result of the tariff adjustment, partly offset by the
reduced traffic in the period, chiefly because of the migration
of customers from dial-up to broadband access to the internet
(ADSL) as well as the increased number of restricted service
lines ("Fale Local / Ja Pago" local service only / prepaid
lines).

- Local fixed-to-mobile calls (VC1) revenues amounted to R$ 650
million, in line with the previous quarter's levels (+0.6%). The
6.0% decline when compared to 2Q04 is attributable to a lower
volume of traffic, influenced by the migration to wireless
originated calls. It should be stressed that the 2005 adjustment
in fixed-to-mobile call rates was implemented only as from July
17. Had the adjustment be implemented in February, as is usual,
revenues for the quarter would have been higher by approximately
R$ 52 million (R$ 84 million in 1H05).

Long distance (LD)

Domestic and International LD revenues grew by 1.1% in the
quarter (+R$ 9 million), driven by the growth in the inter-
regional segment. When compared to 2Q04, the 11.0% growth (+R$
80 million) is due to rate increases market share gains -
notably in the inter-regional segment - as well as increased
long distance calls placed from mobile lines (SMP).

- Fixed-to-mobile calls (VC2/3) revenues declined 3.9% (-R$ 6
million) and 4.0% from the previous quarter and 2Q04,
respectively, due to reduced traffic in the period, as a result
of the growing number of calls being placed from mobile lines.

- Remuneration for network usage increased by 1.3% (+R$ 4
million) on 1Q05 basically due to the resolution of a settlement
that was pending with a mobile operator (R$ 4.5 million). The
change from 2Q04 (-7.8%) is mainly due to the redefinition of
local areas - which impacts our long distance interconnection
revenues - as well as a decrease in rates (due to the
productivity factor).

- Data transmission services revenues grew by 9.0% (+R$ 40
million) on 1Q05, reflecting the increased revenues from Velox
and other data services provided to corporate customers.

When compared to 2004, the growth in revenues from data
transmission services continues very strong, at 32.2% (+R$ 120
million), driven by increased Velox (+R$ 72 million) and other
data services (+R$ 66 million).

- Public telephones revenues decreased by 3.1% (-R$ 9 million)
compared with 1Q05 due to the lower prepaid card sales in the
period. Compared to 2Q04, revenues grew by 13.0% (+R$ 30
million) primarily as a result of rate increases.

- Other revenues dropped 8.4% (-R$ 6 million) sequentially,
mostly because advanced voice services had been positively
impacted by a TV show ("Big Brother Brasil") in that quarter.
These revenues increased by 11.8% from 2Q04, driven by advanced
voice services (+14.2%), chiefly on account of increased traffic
on 0800 calls.

3.1.2 Wireless Services

Revenues from wireless services, on a consolidated basis,
totaled R$ 662 million in the quarter, increasing by 31.3% (+R$
158 million) from 1Q05, primarily as a result of the expansion
in "handset sales" (+R$ 127 million) and "outgoing calls" (+R$
26 million). Consolidated service revenues grew by 7.2% in the
quarter.

When compared to 2Q04, the revenue increase was 34.3%. Revenues
from services grew by 46.3% (with an average customer base
expansion of 61.7%), while handset sales increased by 44.5%.

Revenues from mobile interconnection in 2Q05 amounted to R$ 69
million (+13.2% on 1Q05) - after elimination of R$ 153 million
relating to TMAR.

Oi's gross revenues in the quarter amounted to R$ 891 million.
Service revenues (excluding handset sales) added up to R$ 616
million, approximately 5.0% above 1Q05 levels, primarily due to
the growth in outgoing calls. Net revenues totaled R$ 685
million (+20.9% on 1Q05 and +25.6% on 2Q04).

During 2Q05, ARPU reached R$ 20.80, down 1.4% from the previous
quarter (R$ 21.10), reflecting the strong growth in the customer
base for the period.

Revenues from wireless data services totaled R$ 33 million,
increasing by 3.1% on 1Q05 and accounting for 5.4% of total
wireless service revenues for the quarter.

Net revenues from the sale of 1,117 thousand handsets in the
quarter (+216.4% on 1Q05) amounted to R$ 145 million (+222.2% on
1Q05).

3.2 OPERATING COSTS AND EXPENSES

Costs and expenses (ex-depreciation and amortization) increased
by 5.3% on 1Q05 (R$ 123 million) and 6.7% on 2Q04 (R$ 154
million).

When compared to 1Q05, the increase was mainly derived from
strong handset sales, which affected handset costs (+R$ 162
million) and third-party service expenses (+R$ 58 million) -
mainly sales commissions and related costs. This was partly
offset by lower interconnection costs (-R$ 56 million),
provisions for doubtful accounts (-R$ 40 million), marketing (-
R$ 27 million), and personnel (-R$ 18 million) expenses.

The most significant variations, compared to 2Q04, relate to the
spin-off of Contax, impacting thirdparty services and personnel
expenses. In effect, the increase in third-party services (+R$
244 million) was partly offset by the reduction in personnel
expenses (-R$ 129 million). The R$ 50 million reduction in
interconnection costs, as detailed below, is also worth noting.

- Interconnection costs declined 8.8% (R$ 56 million) from 1Q05,
mainly due to gains arising from the negotiation of VU-M pass
through with another mobile operator (R$ 26 million).

These costs declined by 8.0% on 2Q04, due to Oi's market share
gains and reduced fixed-to-mobile traffic.

- Personnel expenses decreased by 11.3% on 1Q05 (R$ 18 million),
as a result of a 5.0% headcount reduction, as well as lower
employee severance costs incurred in the quarter. On a yearly
basis, personnel expenses fell by 47.6%, mostly because of the
spin-off of Contax (approximately R$ 97 million in 2Q04), with a
reduction in the number of employees 81.4% (16.8% ex-Contax).

- SMP handset costs and other (COGS) increased by 182.1%
compared to 1Q05, as a result of the strong sales in the period.
The volume of handsets sold rose by 216.4%. Year over year,
costs increased by 13.0%, while handset sales grew by 44.5%.

- Third-party services rose by 7.4% (+R$ 58 million) on 1Q05,
chiefly due to the increase in sales logistics and commissions
+R$ 26 million), advisory and legal counsel expenses (+R$ 12
million) and plant maintenance (+R$ 11 million).

Compared to 2Q04, these expenses grew by 40.9% (R$ 244 million),
because of the inclusion of call center expenses following the
spin-off of Contax (+R$ 93 million), in addition to higher sales
commissions (+R$ 47 million), plant maintenance (+R$ 28 million)
and electricity (+R$ 25 million) expenses.

- Marketing expenses declined by 32.5% (-R$ 27 million) on 1Q05,
primarily on account of fewer media and promotional campaign
expenses compared to 1Q05 (World Summer Games, Fashion Rio and
the launch of Oi Internet), and by 9.7% (-R$ 6 million) on 2Q04.

- Rental/Leasing/Insurance decreased by 4.6% (-R$ 7 million) in
the quarter. In comparison with 2Q04, these costs rose by 5.1%,
due to the adjustment of rights-of-way and post rental
agreements in 1Q05.

- Provisions for doubtful accounts - PDA represented 2.0% of
consolidated gross revenues for the quarter (1Q05 - 2.8% and
2Q04 - 2.5%) and 2.4% in the first half of 2005 (1H04 - 3.0%).

PDA accounted for 1.2% of Oi's gross revenues in the quarter
(1Q05 - 1.7% and 2Q04 - 2.3%). At TMAR (parent company), PDA
amounted to 2.1% of gross revenues (1Q05 - 2.8% and 2Q04 -
2.5%).

The decrease in PDA levels compared to 1Q05 is due to campaigns
the company carried out that provided residential customers
discounts on outstanding amounts, recoveries from corporate and
government customers and an improvement in the co-billing
process with other operators.

- Other operating expenses (revenues) increased by R$ 39 million
on the previous quarter, chiefly because of provisions for
employees' profit sharing (+R$ 25 million) and contingencies
(+R$ 22 million).

Year over year, the R$ 51 million increase was mainly due to
higher provisions for contingencies (+R$ 21 million) and taxes
(+R$ 16 million), as well as lower revenues from technical
assistance services (-R$ 6 million).

3.3 EBITDA

Consolidated EBITDA stood at R$ 1,664 million, a 0.3% decrease
compared to the previous quarter and an 11.5% increase on 2Q04,
corresponding to a margin of 40.4% on net revenues for the
quarter (1Q05 - 41.7% and 2Q04 - 39.3%).

- TMAR recorded consolidated EBITDA of R$ 1,632 million (+0.3%
on 1Q05 and +12.9% on 2Q04). EBITDA margin was 39.5% (1Q05 -
40.6% and 2Q04 - 38.7%).

- Oi recorded EBITDA of R$ 71 million, with a 10.4% margin (1Q05
- 20.8% and 2Q04 - 1.9%).

3.4 DEPRECIATION / AMORTIZATION

Depreciation and amortization expenses totaled R$ 846 million in
2Q05, slightly above 1Q05 (1.8%) and 4.7% below 2Q04.

In the first half of 2005, total depreciation and amortization
expenses decreased 10.1% for the wireline business compared to
the same period of 2004, while increasing 22.7% for the wireless
business, as a result of the investments made to expand the
capacity of our wireless plant.

3.5 FINANCIAL RESULT

Net financial expenses amounted to R$ 401 million in 2Q05, up R$
16 million from 1Q05 and R$ 57 million lower than in 2Q04.

Financial revenues were approximately R$ 14 million below the
prior quarter's figures, mostly as a result of the reduced cash
position in 2Q05, due to dividend and interest on capital (IOC)
payments amounting to R$ 1,308 million.

Financial expenses increased by R$ 2 million compared to the
previous quarter. The main items are as follows:

(i) Interest on loans and debentures of R$ 198 million, in line
with the prior quarter (R$ 200 million).

(ii) Exchange results on loans and financing represented
expenses of R$ 157 million (a R$ 52 million reduction in the
quarter), as follows:

(a) Foreign exchange and monetary variation revenues of R$ 760
million, arising from exchange revenues of R$ 780 million on
foreign currency loans - given the appreciation of the real
during the period - and monetary variation expenses of R$ 20
million;

(b) Currency swap expenses of R$ 917 million, arising from of R$
642 million expenses with exchange variations and interest
expenses, CDI-based, amounting to R$ 275 million.

(iii) Other financial expenses totaled R$ 280 million,
increasing by R$ 55 million on 1Q05, primarily because of
increased monetary restatement of provisions, taxes on financial
revenues and other expenses.

During the first half of 2005, net financial expenses added up
to R$786 million, R$ 82 million less than in the same period of
2004 (- 9.4%).

3.6 NET INCOME

Consolidated net income for the quarter amounted to R$ 204
million (+5.6% on 1Q05 and +160.0% on 2Q04). Earnings per share
were R$ 0.53 (US$ 0.22 per ADR). In 1H05 net income totaled R$
397 million, a 32.8% increase compared to 1H04.

It should be pointed out that as a result of the declaration of
IOC during 2Q05, at TNL and TMAR, the provision for "income tax
and social contribution", went from 44.3% of earnings before
taxes (1Q05) to 24.0% (2Q05).

4. DEBT

Consolidated total debt, including currency swap results, was
slightly lower than in Mar/05 (-0.7%), amounting to R$ 11,092
million at the end of 2Q05. Of that amount, 68% was denominated
in foreign currencies (2Q04 - 74%). The cash position at the end
of quarter was R$ 3,939 million, equivalent to 93% of short-term
debt.

Consolidated net debt at the end of Jun/05, of R$ 7,153 million,
increased by R$ 773 million compared to Mar/05 (+12.1%), due to
R$ 1,308 million in payments for dividends and IOC in April.
Compared to the end of Jun/04 it represents a decrease of R$ 202
million (-2.7%).

It should be noted that, as a result of Share Buyback Programs
at both TNL and TMAR that ended Apr/05 and Jun/05, a total of R$
478 million in treasury stock was acquired (TNL - R$ 319
million, and TMAR - R$ 159 million). The buybacks had a
consolidated cash impact of R$ 45 million during 2Q05.

Local currency loans reached R$ 3,518 million in 2Q05 (32% of
total debt), consisting primarily of R$ 2,119 million due to
BNDES, at the average cost of TJLP + 4.3% p.a., and R$ 1,226
million relating to non-convertible debentures, bearing interest
at CDI + 0.7% p.a. and maturing in 2006.

Foreign currency loans, in the amount of R$ 5,476 million -
excluding swap results of R$ 2,098 million - bear interest at
contractual average rates of 6.4% p.a. for transactions in U.S.
dollar, 1.5% p.a. for transactions in Japanese yen, and 10.6%
p.a. for a basket of currencies (BNDES). Approximately 71.4% of
the foreign currency loans were subject to floating interest
rates.

Of the total contracted foreign currency debt, 92.1% had some
kind of hedge, of which 80% in foreign exchange swap
transactions (86% of which contracted through final maturity of
the related debts), and 20% in financial investments linked to
exchange variations.

Under exchange swap transactions, the exposure to foreign
currency fluctuations is transferred to local interest rates
(CDI). The average cost of swap transactions, at the end of the
quarter, was equal to 100.4% of the CDI rate (which was 19.5%
p.a. on average, in the quarter).

During 2Q05, new borrowings reached R$ 361 million including a
draw down in a credit facility with the BNDES of R$ 185 million
(total cost of TJLP + 4.5% p.a.) to finance Oi's expansion.
Amortizations added up to approximately R$ 679 million in the
quarter, of which R$ 326 million related to repayments of
principal and R$ 353 million to cash interest expenses.

During 2Q05, funds owed by TMAR to TNL amounted to R$ 1,357
million.

5. CAPITAL EXPENDITURES

During the quarter, Capex totaled R$ 509 million (12.3% of
consolidated net revenues), of which R$ 296 million was
allocated to wireline and R$ 213 million to the wireless
business.

6. CASH FLOW

Consolidated cash flow from operations reached R$ 1,333 million
in the quarter (1Q05 - R$ 1,234 million and 2Q04 - R$ 1,897
million). The consolidated free cash flow after investing
activities amounted to R$ 817 million (1Q05 - R$ 776 million and
2Q04 - R$ 1,560 million).

In 1H05, cash flow after investing activities reached R$ 1,593
million (R$ 2,269 million in 1H04). The reduction was due to an
increase in CAPEX (+R$ 434 million) and a change in working
capital (R$ 322 million).

The reduction of cash and short term investments in the quarter
resulted from the payment of R$ 1.3 billion as dividends and
interest on capital to TNL and TMAR shareholders.

Disbursements under the Share Buyback Program amounted to R$ 45
million in 2Q05 (1Q05 - R$ 84 million) and R$ 478 million since
inception, in Jun/04.

7. RECENT EVENTS
- Local services, long-distance services and network usage

On July 1, 2005, Telemar was authorized to implement wireline
tariff adjustments according to the
concession agreement, based on the variation in the IGP-DI, less
the productivity factors.

- Fixed-to-mobile calls

On July 15, 2005, Telemar was authorized to adjust local fixed-
to-mobile calls (VC1) by +7.99%, and mobile interconnection
rates (VU-M) to complete VC1 calls by +4.5%. VC2 and VC3 tariff
adjustments, as well as related VU-M rates, are still being
discussed among wireline and wireless operators.

Tax Assessment

Tele Norte Leste informed that it received a tax assessment from
the Secretaria da Receita Federal, the Brazilian IRS, for R$1.35
billion related to a corporate restructuring plan implemented
almost six years ago in 1999.

The restructuring plan included the transfer, from its majority
shareholder, Telemar Participacoes, to TNE, of goodwill recorded
in connection with the acquisition of TNE shares from the
Brazilian Government at the time Telebras and its subsidiaries
were privatized. The transfer enabled TNE to increase cash flow
by allowing the Company to utilize tax credits generated by the
goodwill amortization. By the end of 2004, TNE had exhausted the
tax benefits.

The use of goodwill amortization for the purpose of generating
tax credits is provided for in Brazilian law (Law no. 9532/97).
Consequently, the Company is absolutely convinced of the
legality of the transaction, and has obtained legal opinions
from three first tier law consultants in Brazil to support its
position.

TNE is prepared to dispute the tax assessment and will take all
necessary measures to preserve its legal rights. Although it may
take up to five years for a final verdict to be reached in a
proceeding like this one, the Company trusts that the tax
assessment will be cancelled within the administrative sphere of
the Brazilian IRS, and that there is no discrete legal issue
involved to justify dragging this discussion to court.

- IOC - Interest on capital - FY 2005

On April 19, the General Shareholders' Meetings of Tele Norte
Leste (TNL) and Telemar Norte Leste (TMAR) approved maximum
limits for interest on capital (IOC) to be declared in the
course of 2005, in the amounts of R$ 400 million and R$ 1,000
million, respectively.

- Share Buyback Program

During the quarter, share repurchases amounted to R$ 40.7
million (cash impact of R$ 44.7 million), of which R$ 22.2
million was used by TNLP to purchase 510,600 shares (170,200
common and 340,400 preferred shares), and R$ 18.5 million by
TMAR to acquire 326,600 shares (2,700 common and 323,900
preferred shares).

Since its inception in Jun/04 and through to its end in early
Jun/05, disbursements under the Share Buyback Program amounted
to R$ 477.6 million. Of this total, R$ 318.5 million was
disbursed by TNLP to repurchase 7,869,563 shares (1,393,900
common and 6,475,663 preferred shares), and R$ 159.1 million by
TMAR to repurchase 2,830,389 shares (123,873 common and
2,706,516 preferred shares).

The total amount of shares repurchased under the TMAR buyback
program represented approximately 65% of the total authorized by
the Board of Directors. In the case of TNL, the amount
represented approximately 21% in the first stage and 7% in the
second stage of the program.

- New credit facility from BNDES

Telemar obtained a new credit facility from BNDES, to finance
its program to achieve the universal service targets (PGMU) for
2005. The facility loan amounts to R$218 million, with an 8-year
term and a 12-month grace period, at the average total cost of
TJLP + 3.6% p.a. The first draw down, of R$ 80 million was made
in July/05.

CONTACT: TNE - Tele Norte Leste Participacoes / Telemar
         Investor Relations
         Email: invest@telemar.com.br
         URL: www.telemar.com.br/ir

         Roberto Terziani
         Phone: 55 (21) 3131-1208
         Carlos Lacerda
         Phone: 55 (21) 3131-1314
         Fax: 55 (21) 3131-1155

         Global Consulting Group
         Kevin Kirkeby
         E-mail: kkirkeby@hfgcg.com
         Tel: 1-646-284-9416
         Fax: 1-646-284-9494



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

CELCO: Future of Valdivia Pulp Remains Uncertain
------------------------------------------------
Pulp giant Celulosa Arauco y Constitucion SA (Celco) will leave
its Valdivia pulp shut until the environmental regulator Corema
has issued a new resolution regarding emissions standards.

In mid-January, the Corema shut down the US$1.05-billion plant
for breaking environmental regulations, but allowed it to reopen
a few weeks later.

On June 8, Celco voluntarily shut down the plant after the
Corema imposed more stringent environmental rules.

In an attempt to reactivate the plant's operations, Celco
proposed changes to the plant's operations. However, the Corema
has rejected some of the changes.

Corema also rejected demands from environmentalists for an
outright closing of the plant, thereby leaving the plant's
future in limbo.

Celco's sales drop by around US$1 million per day the plant is
shut. Celco overall accounts for 40% of Chilean pulp and
forestry exports, with Valdivia's exports amounting to some
US$300 million.



=============
J A M A I C A
=============

DYOLL: Creditors Meeting Sees Appointment of Joint Liquidators
--------------------------------------------------------------
Creditors of Dyoll Insurance Company voted at a meeting Thursday
to appoint John Lee, a partner in the auditing firm
PricewaterhouseCoopers, and Kenneth Krys, a partner of the
auditing firm RSM Cayman as joint liquidators.

According to the Jamaica Observer, Lee is currently special
manager of Dyoll, having been appointed on June 10 by the
Supreme Court of Jamaica.

Krys, on the other hand, was the joint provisional liquidator of
Dyoll appointed in April by the Caymanian Grand Court -the
jurisdiction in which most of the debt is owed by Dyoll. Krys
has served as joint provisional liquidators with another
Caymanian, Christopher Stride.

During the meeting, PwC's director Wilfred Baghaloo told
creditors that they could recover between 25 and 35 cents on
each dollar owed when Dyoll is liquidated.

He warned, however, that "the result may vary significantly from
estimates and the total disbursement was unlikely to exceed the
35 cents".

It was revealed at the meeting that as at July 22, 2005 Dyoll
Insurance had liabilities of $2.5 billion and total assets of
$1.6 billion.

But Baghaloo noted that "not all of the assets are actually
convertible, such as tax recovered ($48 million) and accounts
receivable ($403.5 million), due to the difficulty that may
occur in trying to collect".

Also during the meeting, the creditors decided to appoint a
committee of inspection, comprising of five individuals who
would voluntarily oversee the liquidation process.

Dyoll was placed into receivership earlier this year by Brian
Wynter, the executive director of the Financial Services
Commission after the Company's capital was breached following
claims by victims of Hurricane Ivan that hit the Cayman Islands
in September last year.

Since then the top two Dyoll executives, Mark and Steven
Thwaites have been charged for their role in holding critical
information about the state of the Company from the authorities
and shareholders.



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

EMPRESAS ICA: Revenues Up 29% in 2Q05
-------------------------------------
Empresas ICA, S.A. de C.V. (BMV and NYSE: ICA), the largest
engineering, construction, and procurement company in Mexico,
announced Friday its unaudited consolidated results for the
second quarter of 2005. ICA noted the following highlights:

- During the second quarter, ICA was awarded new contracts and
net contract additions of Ps. 1,098 million. ICA's consolidated
construction backlog as of June 30, 2005 was Ps. 17,216 million,
equivalent to 14 months of work at second quarter levels.

- Second quarter revenues rose Ps. 927 million, or 29 percent,
to Ps. 4,163 million, compared to Ps. 3,236 million recorded in
the second quarter of 2004.

- General and administrative expenses were reduced to 6.9
percent of revenues in the second quarter of 2005, compared to
9.6 percent in the prior year period. For the second quarter of
2005 total general and administrative expenses were Ps. 289
million, compared to Ps. 311 million in the same period of the
prior year, a reduction of Ps. 23 million, or 7 percent.

- Operating income for the second quarter of 2005 was Ps. 209
million, an increase of Ps. 131 million as compared to Ps. 78
million in the same period of 2004.

- During the second quarter, ICA refinanced Ps. 787 million in
debt on better terms and interest rates the debt of subsidiaries
related to the Corredor Sur and Acapulco Tunnel (TUCA) projects,
extending the maturity of these loans until 2025 and 2022,
respectively. The two refinancings provided ICA additional cash
of US$68.5 million.

- Total debt at the end of the second quarter was Ps. 8,451
million, an increase of Ps. 1,159 million compared to the Ps.
7,292 million at the end of June 2004. Of the total, Ps. 5,469
million corresponds to the El Cajon hydroelectric project, which
increased Ps. 209 million during the quarter. Excluding the El
Cajon hydroelectric project debt, ICA's total debt increased by
Ps. 96 million as a result of the combined effect of the
placement of US$150 million in notes by ICA Panama for the
Corredor Sur project, the placement of Ps. 800 million in
exchange trade notes by TUCA, and the repayment of debt totaling
Ps. 2,312 million, including all corporate debt.

- ICA recorded net income of majority interest of Ps. 66 million
in the second quarter of 2005, compared to a loss of Ps. 117
million in the second quarter of 2004. This is the fourth
consecutive quarter of net income.

- On July 22 Standard & Poor's announced that ICA's B- rating
has been placed on CreditWatch positive.

CONSOLIDATED RESULTS

ICA recorded second quarter revenues of Ps. 4,163 million
compared to Ps. 3,236 million in the second quarter of 2004. The
El Cajon hydroelectric project accounted for 24% percent of
total revenues and was 68 percent complete as of June 30, 2005.
During the second quarter, revenues from Mexico represented 85.8
percent of total revenues. Revenues in foreign currency,
principally U.S. dollars, accounted for 71.1 percent of the
total.

Second quarter cost of sales was Ps. 3,665 million, an increase
of 29 percent compared to Ps. 2,847 million in the same period
of 2004, which was similar to the increase in revenues. Cost of
sales was 88 percent of revenues, equal to the percentage
registered in the second quarter of 2004.

General and administrative expenses in the second quarter of
2005 totaled Ps.289 million, a 7 percent decrease compared to
the Ps. 311 million registered during the second quarter of
2004. The decrease is primarily the result of lower costs for
bid preparation, which were Ps. 29 million in the second quarter
of 2005, as compared to Ps. 79 million recorded in the second
quarter of 2004.

Operating income during the second quarter of 2005 was Ps. 209
million, an increase of Ps. 131 million, or 168 percent,
compared to Ps. 78 million recorded during the same period of
2004. El Cajon hydroelectric project generated Ps. 62 million,
or 30 percent, of total operating income.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) generated in the second quarter of 2005 were Ps. 410
million, or 9.8 percent of revenues, or an increase of Ps. 18
million over the Ps. 392 million in EBITDA generated in the
second quarter of 2004. El Cajon hydroelectric project accounted
for 13.3 percent of second quarter 2005 EBITDA. EBITDA should
not be considered as an indicator of free cash flow under
Mexican or U.S. GAAP; other companies may define EBITDA
differently.
The integral financing cost in the second quarter of 2005 was
Ps. 102 million, compared to Ps. 26 million recorded in the
second quarter of 2004, and consisted of the following:

(Ps. million)                         2Q2004              2Q2005

Financial Expense                       76                  181
Financial (Income)                     (47)                 (96)
Exchange (Gain) Loss                    (2)                  17
Monetary (Gain) Loss                    (2)                   1
Integral Financing (Gain) Cost          26                  102

Financial expense increased to Ps. 181 million in the second
quarter of 2005 compared to Ps. 76 million in the same period of
2004. The total includes both interest expense as well as
recognition of deferred costs related to the placement of bonds
for Corredor Sur and TUCA and non-amortizable costs related to
the issuance of the new debt, including the cost of the
derivatives to fix the interest rate for the maturity of the
debt. The combined cost of the foregoing was Ps. 136 million.
The exchange loss in the second quarter 2005 was Ps. 17 million,
compared to a Ps. 2 million gain in the same period of last
year. The weighted average interest rate on debt was 15.6
percent during the quarter, compared to 7.4 percent registered
during the same period in 2004, including interest expense
included in the direct costs of financed projects, which totaled
Ps. 136 million. Excluding such effect the weighted average
interest rate would be 8.9 percent. The increase in the weighted
average interest rate is due to nonrecurring financial costs
related to the Corredor Sur and TUCA refinancings.

Other Income was a gain of Ps. 30 million, principally as a
result of the cancellation of contingency reserves created for
the sale of shares of divested subsidiaries in previous quarters
The tax provision in the second quarter of 2005 was Ps. 65
million, of which Ps. 60 million were deferred taxes and Ps. 5
million was employee statutory profit sharing.

ICA recognized Ps. 54 million during the second quarter of 2005
from its share in the net income of unconsolidated affiliates,
which includes the Dravica Consortium, CIMA, SETA, and Dicomex
Holding, among others.

ICA recorded net income of majority interest of Ps. 66 million
in the second quarter of 2005, equivalent to Ps. 0.04 per share
(US$ 0.02 per ADS) based on 1,865.87 million weighted average
shares outstanding, compared to a net loss of majority interest
of Ps. 117 million recorded in the second quarter of 2004,
equivalent to a loss of Ps. 0.06 per share (US$ 0.04 per ADS),
based on a weighted average of 1865.05 million shares
outstanding.

SEGMENT RESULTS

Civil Construction revenues rose, principally as a result of
work on the El Cajon hydroelectric project in Nayarit, the
Tejocotal-Nuevo Necaxa section of the Mexico-Tuxpan highway,
complementary work on the Mexico City International Airport, the
IMSS General Hospital in Cancun, and the fabrication of pavement
slabs for second level of the Periferico expressway in Mexico
City. The operating margin for the segment in the second quarter
of 2005 was 5.6 percent, compared to a margin of 5.8 percent in
the 2004 period. Bid preparation expenses during the quarter
totaled Ps. 15 million.

Industrial Construction revenues increased principally as a
result of new contract awards and advances in the execution of
projects. The projects that contributed most to revenues were
the liquefied natural gas terminal and storage tanks in
Altamira, the Altamira V combined cycle power plant, the marine
drilling platforms for the Ku-Maloob-Zaap fields, the Reynosa
III cryogenic plant in Tamaulipas, and the Chicontepec oil field
project in Veracruz. The operating margin was 4.0 percent. Bid
preparation expenses of Ps. 13 million are included in the
operating results for the second quarter of 2005.

Rodio generated revenues of Ps. 532 million and an operating
margin of 5.2 percent, reflecting the improvement in the margins
for contracted work, primarily in Spain and Portugal.

Other Segments accounted for 8 percent of total revenues during
the quarter.

Housing sold 1,006 units during the second quarter of 2005,
compared to 526 units sold in the same quarter of 2004. Revenues
for the quarter were Ps. 250 million, with an operating margin
of 4.7 percent.

Infrastructure Operations sales decreased to Ps. 86 million in
the second quarter of 2005 compared to Ps. 97 million the second
quarter of 2004, primarily as a result of divestments in 2004.
Operating results were Ps. 19 million or 22.4 percent, compared
to Ps. 11 million, or 10.9 percent registered in the same period
of 2004.

ICA had new contract awards and net contract additions of Ps.
1,098 million during the quarter. New projects added during the
second quarter of 2005 mainly included new contracts in Spain
and Portugal, the drainage system for the Mexico City
International Airport, the San Cristobal bridge in Chiapas, and
the Esparta residential complex, in Mexico City.

At the end of the second quarter, projects in Mexico represented
95 percent of the total backlog, and 79 percent are for public
sector clients.

El Cajon Hydroelectric Project

The El Cajon hydroelectric project was 68 percent complete as of
June 30, 2005, and during the second quarter generated Ps. 1,022
million in revenues and Ps. 62 million in operating income, with
a 6 percent operating margin.

The contractor for the El Cajon hydroelectric project, CIISA
(Constructora Internacional de Infraestructura, S.A. de C.V.),
obtained recognition of direct costs and financial costs
associated to the increased prices for steel, totaling US$ 43
million. The signing of four amending agreements with the client
increased the value of the contract to US$806 million.

At the close of the second quarter, US$ 427.7 million in long
term financing for the project had been disbursed, or 62.7
percent of the long term financing of US$ 682.4 million from the
syndicated loan and the 144A bond.

Total liabilities attributable to El Cajon hydroelectric project
rose to Ps. 6,731 million, of which 10 percent was short term
and 90 percent long term. The syndicated loan is shown on ICA's
balance sheet as it is disbursed. The entire amount of the 144A
bond, for US$ 230 million, has been recorded as long-term
securities debt since the date of its issuance. The bond
proceeds are used pari passu with the syndicated loan, and the
cash obtained from the bond placement is recorded as a long-term
investment until it is used.

Revenues increased 40 percent to Ps. 8,171 million in the first
half of 2005 compared to Ps. 5,858 million in the first half of
2004. Operating income was Ps. 408 million, a 183 percent
increase from the Ps. 144 million in the same period of 2004.
EBITDA increased by Ps. 69 million to Ps. 786 million in the
first six months of 2005 from Ps. 717 million in the first six
months of 2004. The EBITDA margin for the six months of 2005 was
9.6 percent.

Net income of majority interest was Ps. 133 million, an
improvement of Ps. 337 million compared to the loss of Ps. 204
million recorded in the same period of 2004. The gain per share
in the first six months of 2005 was Ps. 0.07 ($0.04 per ADR),
based on 1,865.46 million weighted average shares outstanding,
compared to a loss per share of Ps. 0.11 (US$ 0.06 per ADR)
based on 1,867.28 million weighted average shares outstanding
during the first six months of 2004.

As of June 30, 2005, ICA had total assets of Ps. 21,019 million,
an increase of Ps. 1,769 million, or 9 percent, compared to Ps.
19,250 million at the end of the same period of 2004. Both
current and long term assets increased and reflect the higher
levels in activity, faster invoicing of completed work, and
advances in the execution of El Cajon hydroelectric project.
At the end of the second quarter of 2005, ICA had total cash and
short-term investments of Ps. 3,457 million, an increase of 32
percent, compared to Ps. 2,613 million at the end of the second
quarter of 2004. Of total cash and short-term investments, 59
percent was in ICA's joint venture subsidiaries: 45 percent in
ICA Fluor, 12 percent in El Cajon hydroelectric project, and 1
percent in Rodio. The remaining 41 percent of the total, or Ps.
1,434 million, was held at the parent company or in other
operating subsidiaries. Of total cash as of June 2005, 38
percent represented advances from clients.

Short-term accounts receivable increased Ps. 127 million to Ps.
2,818 million at the end of June 2005 from Ps. 2,691 million at
the end of June 2004 as a result of contract mechanisms used by
ICA. Collections are tied to meeting project completion
milestones, since contract terms generally do not provide for
client advances. Accounts receivable related to such projects
include Ps. 564 million in the Industrial Construction segment,
made up of Ps. 469 million for the Chicontepec oil field
project, Ps. 69 million for Package II of the Minatitlan
Refinery reconfiguration project, and Ps. 25 million for the
four Ku Maloob-Zaap drilling platforms.

Long term investments and accounts receivable on ICA's balance
sheet, totaling Ps. 5,916 million, include the certifications
for completed work on the El Cajon hydroelectric project,
reflecting advances in the construction of the project, as well
as the unused portion of the proceeds from the 144A Bond.

Total liabilities increased Ps. 1,434 million to Ps. 14,854
million at the end of June 2005 from Ps. 13,420 million at the
end of June 2004.

Shareholders' equity was Ps. 6,165 million as of June 30, 2005
as compared to Ps. 5,830 million on June 30, 2004. The increase
in capital compared to the prior year balance reflects the net
income generated in 2004 and in the first quarter of 2005.

Debt

Total debt at the end of the second quarter was Ps. 8,451
million, an increase of Ps. 1,159 million compared to the Ps.
7,292 million recorded 12 months earlier.

Excluding the El Cajon hydroelectric project, total debt
increased by Ps. 96 million, primarily as the combined result of
notes placed by ICA Panama for the Corredor Sur for US$ 150
million, and exchange traded notes placed by TUCA for Ps. 800
million, which was offset in part by the payment of Ps. 2,312
million in debt, including holding company, subsidiary, and
project debt.

Net debt excluding the El Cajon hydroelectric project was Ps.
(65) million, a Ps. 1,109 million reduction, compared to Ps.
1,043 million registered in the second quarter of 2004. This is
a result of the payment of corporate debt and the refinancing of
projects that generated cash for the Company.

US$ 427.7 million of the El Cajon hydroelectric project long
term financing has been used by ICA.

Of ICA's total debt, 97 percent, or Ps. 8,197 million,
corresponds to projects; and 3 percent, or Ps. 254 million, is
operating company debt.

During the second quarter of 2005 ICA paid in full US$ 44
million in corporate loans from Banamex and Caterpillar.

In the second quarter ICA refinanced on longer terms and better
interest rates all debt related to Corredor Sur and TUCA,
extending the maturity of these loans until 2025 and 2022
respectively. The two operations provided ICA additional cash of
US$68.5 million.

As of June 30, 2005, 5 percent of ICA's total debt matured in
less than one year; 58 percent is securities debt; and 66
percent is denominated in foreign currency, principally dollars.

ICA's policy is to maintain natural hedges for its debt
liabilities. The Company matches the currency of financing for
projects and its subsidiaries with the currency of the
associated revenues that will be the source of repayment.

Liquidity and Financial Ratios

The current ratio as of the end of the second quarter of 2005
increased to 1.44, compared to 1.25 in 2004. The increase is the
result of payment of corporate and working capital debt,
refinancing of liabilities, and an increase in the Company's
activities. However, it should be noted that a portion of ICA's
cash and cash equivalents has been pledged to obtain letters of
credit required by clients to secure project advances and
performance on several of the projects that ICA is undertaking.

The interest coverage ratio (EBITDA/net financial expense) was
2.46, compared to 5.37 in the same period of last year,
considering the effect of the Interest expense included in the
cost of sales. The decrease in the ratio is the result of both
interest expense as well as recognition of deferred costs
related to the placement of bonds for Corredor Sur and TUCA and
non-amortizable costs related to the issuance of the new debt.
Excluding these expenses, the interest coverage ratio would have
been 3.01 during the second quarter of 2005. The leverage ratio
(total debt/equity) increased to 1.37 in 2005, compared to 1.25
in 2004.

Subsequent Events

On July 14, 2005, ICA's Extraordinary General Shareholders'
Meeting approved, among other items, (i) an increase in the
variable portion of the capital stock of the Company for an
amount equivalent of up to US$ 230 million dollars in accordance
with Article 81 of the Mexican Securities Law (Ley del Mercado
de Valores), and (ii) a public offering in Mexico (oferta
publica primaria) of the representative shares of the capital
increase mentioned in paragraph (i), together with a private
offering to certain institutional investors in the United States
and other international markets under the regulations applicable
in the countries where the offering is made, and subject to
approval by the Mexican National Banking and Securities
Commission (Comision Nacional Bancaria y de Valores).

On July 22, Standard & Poor's announced that it placed ICA's
rating on CreditWatch positive.

As part of ICA's strategy of increasing its participation in
infrastructure operation projects, the Company reaffirms its
commitment to selectively participate in infrastructure
operating companies that represent good investment
opportunities, provide diversification in revenues, and stable
cash flow. It is in this regard that ICA is in the process of
acquiring the 37.25% participation of its partner Vinci, S.A.
(Vinci) in Servicios de Tecnologia Aeroportuaria, S.A. de C.V.
(SETA), for approximately US$38 million. SETA is the strategic
operator of Central North Airports Group (GACN), and owns 15
percent of its shares. This transaction will not result in the
consolidation of SETA in ICA's financial statements.
Additionally, and as part of this strategy, we have notified the
Ministry of Communications and Transport (SCT) of our intent to
exercise, under certain conditions, the option we have to
purchase up to 36 percent of additional GACN shares. There is no
assurance that the Mexican Government will accede to the
proposed conditions, and that such options exercise will take
place. In 2004, GACN reported revenues of Ps. 1,196 million, and
served 10.6 million passengers.

Financial information is unaudited and is prepared in accordance
with Mexican GAAP. Figures are presented in Mexican pesos (Ps.)
of June 30, 2005 purchasing power. The exchange rate used for
the conversion of amounts at June 30, 2005 was Ps. 10.72 per
U.S. dollar. The sum of line items may not match totals because
of rounding.

ICA was founded in Mexico in 1947. ICA has completed
construction and engineering projects in 22 countries. ICA's
principal business units include civil construction and
industrial construction. Through its subsidiaries, ICA also
develops housing, manages airports, and operates tunnels,
highways, and municipal services under government concession
contracts and/or partial sale of long-term contract rights.

CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.
         Col. Escandon Del Migual Hidalgo
         Mexico City, 11800
         Mexico
         Phone: 525-272-9991
         URL: http://www.ica.com.mx


GRUPO TMM: Revenue Up 21.9% for 2Q05
------------------------------------
- Two new five-year charter contracts for product tankers with
Pemex will provide an additional $97 million in revenue during
their terms

- Plan to increase owned offshore supply ship vessels underway

Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A), a Mexican multi-modal
transportation and logistics company, reported a loss of $0.21
per share for the second quarter of 2005 compared to a loss of
$0.26 per share a year ago, and earnings of $2.53 per share for
the first six months of 2005 compared to a loss of $0.42 per
share in the same period of last year.

TMM reported the following results for the second quarter:

- Revenue of $75.7 million, up 21.9 percent from $62.1 million
the previous year

- Operating income of $0.07 million, down from $2.5 million a
year ago

- Operating margin of 0.1 percent, down 3.9 percentage points
from the previous year

- Net loss of $11.7 million, down from a net loss after
discontinuing operations of $14.7 million the previous year

TMM reported the following results for the first six months:

- Revenue of $140.2 million, up 19.0 percent from $117.8 million
the previous year

- Operating income of $1.2 million, down from $2.5 million a
year ago

- Operating margin of 0.9 percent, down 1.2 percentage points
from the previous year

- Net income after discontinuing operations of $144.0 million,
up from a net loss after discontinuing operations of $23.8
million the previous year. Net income after discontinuing
operations for the first six months of 2005 included a gain on
the sale of the Company's interest in Grupo TFM to Kansas City
Southern of $176.4 million net of income taxes

The Company improved its financial performance with the
reduction of $140 million of financial obligations in mid-May,
lowering interest costs by $14.9 million per year. Additionally,
shareholder equity improved by $144.0 million in the first six
months of 2005.

Net financial expenses decreased by 16.4 percent, or $2.5
million, in the second quarter of 2005 and increased by 23.4
percent, or $6.8 million, in the first six months of 2005
compared to the same periods last year. The decrease in the
second quarter was mainly due to the reduction of $140 million
in financial obligations mid quarter. The increase in the six-
month period was mainly attributable to higher interest costs
from the Company's 2007 bonds, to additional amortized expenses
of $5.2 million related to the Company's retired securitization
program, and to amortization of restructuring expenses for the
Company's 2007 bonds of $10.6 million.

SG&A increased by $0.6 million in the second quarter of 2005
compared to the 2004 period and included $0.3 million of
corporate restructuring expenses. SG&A increased by $0.4 million
in the first six months of 2005 compared to the same period last
year and included corporate restructuring expenses of $0.7
million.

Javier Segovia, president of Grupo TMM, said, "As we stated last
quarter, our focus this year is to improve the value of the
Company for all stakeholders. By developing our operations and
growing our businesses, we will provide greater value for our
investors through reduced debt and increased cash flow. Based on
the events described below, we estimate full-year 2005 and 2006
EBITDA to be $32.9 million and $75.7 million respectively.

"We described a number of opportunities in the first quarter and
accomplished many of them during the second quarter. We expect
to complete other opportunities during the third and fourth
quarters, as we are committed to doing what we say we are going
to do.

"In that regard, we had success in the first six months of 2005
growing existing TMM businesses and exploring ways to expand our
operations. At Specialized Maritime, we won bids for two five-
year charter contracts for product tankers with Pemex, which
will provide $97 million in revenue during their terms. Both
tankers were put into service during July. These contracts have
been used to finance the purchase of the vessels needed to
service the long-term contracts. We anticipate bidding on
additional product tanker contracts for Pemex as they are
offered. We expect these additional contracts to be presented in
the third and fourth quarters and believe we will devise
competitive positions in this bidding process. As we've stated
previously, the Mexican Navigation Law reserves first preference
for intra-Mexican cabotage movements to Mexican owned and
flagged vessels.

"Additionally, we have set in motion a plan to purchase five
previously leased supply vessels through their contracted
revenue with Pemex, which are set to close during the third
quarter. We expect to purchase additional supply vessels
throughout the fourth quarter. The purchase of these five
previously leased vessels will improve TMM's EBITDA run rate by
$9.9 million on an annualized basis with the mix of current
rates.

"As we announced last quarter," Segovia continued, "We plan to
participate in new opportunities for our Port division as they
become available. We are pleased that second quarter port
traffic volume substantially improved.

"Because of the recent sale of TFM to Kansas City Southern, our
Logistics business is adjusting to changes in its focus, which
are impacting results in the short term. Results have been
influenced by three factors. First, inter-company settlement
issues have included an adjustment in rail rates for certain
movements related to services provided to Ford, thus impacting
service factors and temporarily affecting costs. Second, during
the second quarter, a bid at the Ford Hermosillo plant lost to
Ferromex in June added to employee termination costs and a
reduction in revenue going forward. Finally, the Intermodal
division has increased its use of trucks on certain traffic
lanes due to changes in TFM's intra-Mexican schedules. The
division has not been able to pass these cost and revenue
changes on to its customers.

"However, we remain confident in the future of our Logistics
division," Segovia continued. "Even though this division's
capital has been constrained during the last three to four
years, its brand name and customer loyalty have remained strong.
As TMM's free cash flow improves, the Logistics division will be
able to make capital improvements that will make it a viable
standalone third party-four party provider, no longer tied to
the procedures of the railroad or to ships, and offering
significant value to our stakeholders.

"As a part of the Logistics division's transition process and in
support of our current management, TMM has asked Juan Vergara,
formerly TFM's human resource director, and Brad Skinner, who
was instrumental in the start up of TFM and who in recent years
has led our investor relations function, to help design a bold
new future for the Logistics division. Juan possesses
significant experience at Ford and other multinational
companies, and Brad has held significant positions throughout
his career in trucking, logistics, and rail companies in the
United States."

Segovia concluded, "We also continue in our efforts to improve
our balance sheet in order to create a financial structure that
will support the Company's new growth objectives and add
significantly to shareholder value. We are in the process of
designing programs for the best use of our Kansas City Southern
stock with an intention of streamlining our debt profile, and
will announce additional details as they are finalized.

"Finally, we have continued to work with Kansas City Southern
for the completion of a VAT-Put settlement with the Mexican
government. We remain confident of the positive outcome
consistent with our previous announcements. Our Ports, Logistics
and Specialized Maritime operations continue to grow in niches
that are unique and profitable, improving operating earnings."

SEGMENT RESULTS

Specialized Maritime

In the second quarter, Specialized Maritime reported:

- Revenue of $42.7 million, up 24.5 percent from last year's
$34.3 million

- Operating income of $4.7 million, up from $4.3 million a year
ago

- Operating margin of 11.0 percent, down 1.5 percentage points
from the previous year

In the first six months, Specialized Maritime reported:

- Revenue of $72.6 million, up 15.6 percent from last year's $
62.8 million

- Operating income of $7.8 million, up from $7.4 million a year
ago

- Operating margin of 10.7 percent, down 1.1 percentage points
from the previous year

In product tankers, revenues increased by 130.0 percent, or $8.5
million, in the second quarter and by 84.8 percent, or $9.6
million, in the first six months of 2005 compared to the same
periods last year. Gross profit increased by $1.8 million in the
second quarter compared to the second quarter of 2004. At the
end of the first six months of 2005, the division operated four
short-term product tanker contracts with Pemex, which
significantly increased revenue in this segment. Results were
also positively impacted by the purchase of product tankers
described earlier, which will also improve third quarter
results.

Parcel tankers revenues increased 3.6 percent and 2.5 percent in
the second quarter and first six months of 2005 respectively.
Parcel tankers results in the second quarter were negatively
impacted by a 57 percent fuel price increase compared to the
same period last year and by cargo mix, which increased the
average trip time, raising costs and reducing margins. Had
parcel tankers not been impacted by these issues, operating
margin would have been 1.3 percent higher than last year's
results. A fuel surcharge program has been implemented and
should begin to improve results in this segment.

Tugboat revenues increased 14.2 percent and 6.4 percent in the
second quarter and first six months of 2005 respectively,
influenced by increased vessel calls at the Port of Manzanillo
during the second quarter and by the appreciation of the peso
versus the dollar. These revenue increases were partially offset
by decreased revenues in supply vessels, impacting this business
by $0.5 million in the first six months of 2005.

Ports and Terminals

For the second quarter, Ports and Terminals reported:

- Revenue of $8.6 million, up 43.3 percent from last year's $6.0
million

- Operating income of $0.1 million, up from $0.04 million a year
ago

- Operating margin of 1.6 percent, up 1.0 percentage points from
the previous year

For the first six months, Ports and Terminals reported:

- Revenue of $17.5 million, up 53.5 percent from last year's
$11.4 million

- Operating income of $1.0 million, up from $0.03 million a year
ago

- Operating margin of 5.7 percent, up 5.5 percentage points from
the previous year

Revenue at Acapulco increased 26.3 percent and 66.0 percent in
the second quarter and in the first six months of 2005
respectively compared to the same periods last year. These
revenue increases were mainly due to an 18.9 percent increase in
cruise ship revenue through agreements with Carnival and
Norwegian Cruise Lines in the second quarter of 2005. Passenger
traffic increased over 100 percent in the first six months of
2005 compared to last year, from 75,315 to 153,610 passengers.
New signed agreements with cruise line companies over and above
those mentioned above will continue to add to operating profits
and revenue.

Car handling revenues increased 43.9 percent in the first six
months of 2005 compared to last year, as car movements, mainly
for Volkswagen and Nissan, increased 27 percent. Shipping agency
revenues significantly increased in the first six months of the
year as the division serviced 400 calls in the first six months
of 2005 compared to 256 calls in the same period last year. The
Company initiated shipping agency operations at Cozumel and
Progreso during the first six months of 2005, which totaled 67
calls.

Logistics

In the second quarter, Logistics reported:

- Revenue of $24.4 million, up 10.9 percent from last year's
$22.0 million

- Operating loss of $0.7 million down from a profit of $1.8
million a year ago

- Operating margin loss of 3.0 percent, down 11.3 percentage
points from the previous year

In the first six months, Logistics reported:

- Revenue of $50.2 million, up 13.8 percent from last year's
$44.1 million

- Operating income of $0.6 million down from $3.1 million a year
ago

- Operating margin of 1.2 percent, down 5.9 percentage points
from the previous year

As indicated above, the Logistics division is in the process of
redesigning some of its products and offerings. The Company
believes the division's results will improve once the
restructuring is implemented during the fourth quarter of this
year.

SALE OF TFM

On April 1, 2005, Grupo TMM completed the sale of its interest
in Grupo TFM to Kansas City Southern. The consideration received
by TMM totaled approximately $600 million. The Company has also
concluded inter-company settlements, consummating the closing
agreements.

DEBT REDUCTION

During the second quarter, $200 million in cash proceeds from
the sale of the Company's interest in Grupo TFM were used to pay
down TMM's securitization program, the GM Put Option, TMM's
Senior Secured Notes due 2007 on a pro rata basis, and related
fees and expenses. The remaining outstanding Secured Notes due
2007 is approximately $465 million.

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

TMM and Kansas City Southern (KCS) have jointly prepared a
proposal for settlement of the pending VAT claim and the Put and
have submitted the proposal to the Mexican government for review
and acceptance. The proposal contemplates, in general terms,
that Grupo TFM will exchange the 20 percent of shares of TFM
subject to the Put option held by the Mexican Government (the
"Put") on a basis that effectively offsets the VAT claim and Put
obligation, ending all litigation on these issues. Once the VAT
claim and Put have been settled, KCS will pay to TMM $110
million in a combination of cash and stock. As part of the
closing of the TFM sale transaction, KCS has assumed all
responsibilities associated with the Put obligation.

The Company plans to file its 2004 annual report in August.

Headquartered in Mexico City, TMM is a Latin American multimodal
transportation Company. Through its branch offices and network
of subsidiary companies, TMM provides a dynamic combination of
ocean and land transportation services.

To see Financial tables: http://bankrupt.com/misc/GRUPO_TMM.htm

CONTACT: Grupo TMM
         URL: www.grupotmm.com
         Juan Fernandez
         Phone: 011-525-55-629-8778
         E-mail: juan.fernandez@tmm.com.mx
                        or
         Brad Skinner
         Investor Relations
         Phone: 011-525-55-629-8725
                203-247-2420
         E-mail: brad.skinner@tmm.com.mx
                        or
         Dresner Corporate Services
         Philip Kranz
         Investors, Analysts, Media
         Phone: 312-726-3600
         E-mail: pkranz@dresnerco.com
                        or
         PROA/StructurA
         Marco Provencio
         Phone: 011-525-55-629-8708
                011-525-55-442-4948
         E-mail: mp@proa.structura.com.mx


UNEFON: Boasts of MXN2 Bln Net Profit in 2Q05
---------------------------------------------
Unefon SA, the country's smallest wireless service provider,
reported MXN2 billion in net profit in the second quarter of the
year as a result of ceding 8.4 megahertz of wireless spectrum to
market leader Telcel, reports Dow Jones Newswires.

Unefon said its ceding the spectrum to Telcel didn't imply any
additional payment to the US$267.7 million it had received.
Excluding the effect on second-quarter results, net profit would
have been MXN158 million, compared with a MXN106 million loss in
the second quarter of 2004.

The Company saw its sales fall to MXN979 million in the quarter
from MXN1.03 billion a year ago, but operating profit increased
to MXN132.1 million from MXN80.3 million.

Total debt at the end of June was MXN1.09 billion, less than one
times 12-months of trailing earnings before interest, taxes,
depreciation and amortization, or EBITDA.

Second quarter EBITDA was MXN316 million.

Unefon is 46.5%-owned by the country's No. 2 broadcaster TV
Azteca (NYSE: TZA).

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


VITRO: Bear Stearns Ups Recommendation to Underperform
------------------------------------------------------
Bear Stearns upgraded Thursday Mexico's glass maker Vitro SA to
peer perform from underperform after the latter agreed to sell
its 51% stake in Vitrocrisa to Libbey Inc.

Vitrocrisa, the largest manufacturer of glass tableware in Latin
America, is a joint venture between Vitro and Libbey.

Bear Stearns believe that the sale is a positive step likely to
bring in US$40 million in equity to Vitro.

The transaction is "a solid step forward" toward Vitro's likely
objective to raise US$100 million to US$150 million of funding
through year end, Bear Stearns said.

With other alternatives still available to Vitro, "we believe
creditors will be comforted and default risks should fall.
Equity risk remains high, but the reward could be substantial,"
the investment house said.

"We look for further details and further progress before
becoming bullish but consider current levels a solid floor,"
Bear Stearns said.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. 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.

CONTACT:  Vitro, S.A. de C.V.
          Media Relations: Albert Chico Smith
          Tel: +52-81-8863-1335
          E-mail: achico@vitro.com

          Financial Community: Leticia Vargas
          Tel: +52-81-8863-1219
          E-mail: lvargasv@vitro.com

          Adrian Meouchi
          Tel: +52-81-8863-1350
          E-mail: ameouchi@vitro.com
          URL: http://www.vitro.com

          U.S. Contacts: (Breakstone Group)
          Susan Borinelli
          Tel: +1-646-452-2336
          E-mail: sborinelli@breakstone-group.com

          Michael Fehle
          Tel: +1-646-452-2336
          E-mail: mfehle@breakstone-group.com



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

PAN AMERICAN SILVER: Reports Improved Results in Second Quarter
---------------------------------------------------------------
FINANCIAL RESULTS

Pan American Silver Corp.'s (NASDAQ: PAAS; TSX: PAA)
consolidated revenue for the second quarter of 2005 was $23.9
million, a 14% increase over 2004 due to the addition of
production from the Morococha mine in Peru acquired in the third
quarter of 2004. Cash flow from operations before changes in
working capital totaled $3.5 million versus $2.0 million in 2004
due to increased silver and base metal production and higher
realized silver prices. Mine operating earnings in the quarter
increased to $3.1 million from $2.4 million in the year-earlier
period, due to the contribution of earnings from Morococha and
improved production at La Colorada.

While consolidated cash production costs increased 10% over the
second quarter of 2004, they declined slightly from the first
quarter of 2005. All operations continue to be affected by
higher energy and labour costs. However, expected increases in
silver production at Quiruvilca and Huaron should help reduce
unit costs over the remainder of the year.

Pan American recorded net earnings of $24,000 in the second
quarter versus net earnings of $1.3 million in the corresponding
period of 2004. The addition of good earnings from the Morococha
mine was more than offset by three factors not present in the
corresponding period of 2004: first, charges for Peruvian income
taxes, workers' participation costs and the 1% net smelter
royalty tax totaling $1.5 million; second, higher energy and
labour costs which increased unit production costs; and third, a
decreased contribution from the low-cost silver stockpile
operation.

Consolidated silver production in the second quarter totaled
3,088,667 ounces, a 24% increase over the second quarter of
2004, due primarily to the addition of production from the
Morococha mine and increased production at the La Colorada mine
in Mexico, offset by lower production at the Silver Stockpiles
and Huaron. Zinc production in the quarter increased 26% over
2004 levels to 9,246 tonnes due to the addition of production
from Morococha, while lead production dropped 12% to 3,703
tonnes due to lower grades at Huaron and Quiruvilca. Copper
production rose 60% to 1,051 tonnes due to the addition of
production from Morococha and higher copper grades at Huaron.

For the six months ended June 30, 2005, consolidated revenue
totaled $51.0 million, a 41% increase over the first six months
of 2004, due primarily to increased production and increased
realized silver prices. In the first six months, the Company's
net loss totaled $2.9 million, versus net earnings of $0.9
million in the year-earlier period.

Consolidated silver production in the first half of 2005 totaled
6,084,369 ounces, a 25% increase over the first half of 2004.
Zinc production in the half also climbed 25% to 18,117 tonnes,
while lead production decreased 9% to 7,378 tonnes and copper
production rose 56% to 1,978 tonnes.

At June 30, 2005 working capital was $96.6 million, including
cash and short-term investments of $78.9 million. Working
capital is $9.7 million less than at March 31, 2005 due
primarily to expenditures on the construction of the Alamo
Dorado silver project in Mexico.

Geoff Burns, President and CEO of Pan American Silver stated
that "This was a solid quarter. We increased silver production
24%, we generated tremendous exploration success and we made
excellent progress on the building of our next mine, Alamo
Dorado, which is gearing up exactly according to plan. I am
pleased with the exceptional performances at Morococha and La
Colorada, but we still have work to do at Huaron."

OPERATIONS AND DEVELOPMENT HIGHLIGHTS

PERU

The Morococha mine (87% owned) recorded an excellent quarter and
produced 691,612 net ounces of silver at a cash cost of
$2.78/oz. Increased throughput, higher ore grades and better
metal recoveries all contributed to the outstanding performance.
Much of the Company's exploration drilling in the second quarter
was focused on Morococha in order to exploit the mine's
significant long-term potential. To date this year, 14,000
meters of drilling have added 1.23 million tonnes grading 170
g/tonne silver in new proven and probable mineral reserves,
containing an additional 6.4 million ounces of silver. Total
proven and probable mineral reserves at Morococha now stand at
3.3 million tonnes grading 207 g/tonne silver, for 21.9 million
contained ounces of silver (19.0 million ounces Pan American's
share). The mine also contains an additional 11 million ounces
of silver in measured and indicated resources, and 71.9 million
ounces in inferred resources, as announced on July 21, 2005.
Further drilling in 2005 is expected to convert previously
delineated resources into additional proven and probable
reserves.

The Quiruvilca mine produced 580,999 ounces of silver in the
second quarter, a 3% increase over the first quarter of 2005.
Cash costs were $4.46/oz, but are expected to decrease over the
remainder of the year as production rises to the forecast 2.3
million ounces. A new conveyor system has been installed on the
key 340 level of the mine which is expected to increase
production levels and lower unit costs.

The Huaron mine produced 922,643 ounces of silver in the second
quarter, a 4% improvement over first-quarter levels. Cash costs
rose over 2004 levels due primarily to lower zinc production
caused by lower zinc grades and recovery rates in the ore
currently being mined. Metallurgical testing is underway to
determine how to increase zinc recoveries to historical levels.
A number of production initiatives implemented in the last six
months are expected to improve Huaron's performance over the
remainder of the year.

In the second quarter the Silver Stockpile operation sold
150,016 ounces of silver, versus 261,746 ounces in the second
quarter of 2004 due to decreased demand for the ore from the Doe
Run smelter in Peru. Production costs rose as a reflection of
the royalty now being paid to the Peruvian company Volcan under
the operation's purchase agreement.

MEXICO

The performance of the La Colorada mine continued to improve in
the second quarter with record production of 743,397 ounces of
silver, bringing its total for the year to 1,432,016 ounces.
Cash costs declined to $5.39/oz from $6.82/oz in the
corresponding period of 2004. Due to more selective mining
methods the operation has increased production by 57% over the
first half of 2004 while mining only 9% more tonnes of ore. In
the second quarter the operation also completed a plan for the
resumption of mining of sulphide ore, which had ceased due to
excess water. Mining and stockpiling of sulphide ore will
commence immediately with the restart of the sulphide processing
plant scheduled for February, 2006. Mining the sulphides will
add approximately 0.9 million ounces of silver annually to
production at a cash cost of $2.20/oz, substantially decreasing
the mine's overall unit costs.

Construction of the Alamo Dorado mine, which commenced in the
first quarter of 2005, is on schedule and on budget. Commercial
production of 5 million ounces of silver annually is expected to
begin in late 2006. All critical equipment has been secured and
key members of the operations team have been hired. Design work
on the operation is approximately 40% complete. Construction
activities are well underway, including site clearing, roadwork,
the installation of temporary power and the erection of the
truck maintenance and warehouse facility. During the quarter,
the Company spent $5.6 million, with an additional $33.5 million
expected to be spent over the remainder of 2005.

ARGENTINA

The feasibility study on the 50% owned Manantial Espejo joint
venture in Argentina continues to progress and remains on target
for completion in the fourth quarter. Exploration and infill
drilling programs completed in the first half of the year have
allowed for the refinement of mining methods and have
significantly increased the joint venture's confidence in the
overall resource estimate, but have not materially increased the
project resources as stated at December 31, 2004. The project is
expected to produce in excess of 3.7 million ounces of silver
and 56,000 ounces of gold annually. As part of the completion of
the feasibility study, capital and operating cost estimates are
being reviewed to identify opportunities to optimize project
economics, including the negotiation of power and infrastructure
programs with the Argentine government. An Environmental Impact
Study is also underway to secure the necessary mine development
permits.

BOLIVIA

During the second quarter, Pan American finalized agreements
outstanding with state mining company Comibol and as a result is
now planning to refurbish the existing Vetillas mill at San
Vicente rather than toll milling at another facility. The
refurbishment of the Vetillas mill will allow production at San
Vicente to increase to approximately 2.6 million ounces of
silver annually, reducing operating costs and improving
profitability. Pan American began stockpiling ore in July in
anticipation of commencing operations in the first quarter of
2006. Consequently, the 735,000 ounces originally forecast to be
produced this year have been deferred until 2006. Pan American
now estimates production for 2005 to be 12.5 million ounces of
silver versus the 13.6 million ounces forecast in January, but
much of this shortfall will be made up with higher production in
2006.

SILVER MARKETS

The silver price remained volatile in the second quarter,
ranging from a low of $6.85/oz to a high of $7.53/oz, although
it opened and closed at $7.10/oz, near its average for the
quarter of $7.16/oz. The 2005 World Silver Survey, released in
May by Gold Fields Mineral Services, continued to support a
bullish case for higher silver prices, citing strong physical
off take for industrial applications and jewelry against
declining scrap supply and government sales. However, the
dominant driver for the price increases sustained since 2003 has
been investment demand for silver. According to GFMS, investors
are once again viewing silver as a viable asset class and the
trend toward buying silver as a commodity is expected to remain
strong, likely bolstered by the announcement that an Exchange
Traded Fund in silver is being launched by Barclays.

CONTACT:  Brenda Radies, Vice-President Corporate Relations
          Tel: (604) 806-3158
          URL: http://www.panamericansilver.com



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

CENTENNIAL COMMUNICATIONS: Committee OKs Bonus Payments
-------------------------------------------------------
The Compensation Committee (the "Committee") of the Board of
Directors (the "Board") of Centennial Communications Corp. (the
"Company") approved on July 25, 2005 the payments of bonuses for
the Company's fiscal year ended May 31, 2005 for its executive
officers, including the executive officers listed as "Named
Executive Officers" in the Company's proxy statement for its
2004 annual meeting of stockholders.

Bonus compensation for executive officers, including the Named
Executive Officers, is determined by reference to a formula that
ties a target bonus objective to the achievement of certain pre-
defined financial benchmarks.

The financial benchmarks established by the Committee were
revenue and adjusted operating income, but vary slightly with
respect to certain executive officers that perform services
directly for one of the Company's individual business units.
Under this formula, the Company's executive officers' actual
bonus amounts could be greater or less than the target bonus
based on the Company's actual financial performance.

In addition, an executive officers' individual bonus award may
be adjusted up or down by up to 15% based on the achievement of
certain personal objectives. The maximum bonus for any executive
officer is 250% of target. The following table sets forth the
approved bonuses for fiscal 2005 for the Named Executive
Officers:

Name                    Position                         Bonus

Michael J. Small        Chief Executive Officer        $740,576

Thomas J. Fitzpatrick   Executive Vice President
                        Chief Financial Officer        $395,288

Phillip H. Mayberry     President
                        U.S. Wireless Operations       $413,986

Thomas R. Cogar         Executive Vice President
                        Chief Technology Officer
                        Caribbean Operations           $165,844



The Company will provide additional information with regard to
compensation of its Named Executive Officers in the proxy
statement for its 2005 annual meeting of stockholders.

CONTACT: CENTENNIAL COMMUNICATIONS CORP.
         Steve E. Kunszabo
         Director, Investor Relations
         Phone: 732-556-2220
         URL: http://www.centennialwireless.com/
              http://www.centennialpr.com
              http://www.centennialrd.com



                            ***********


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

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