Latin Trade: Exit strategy: change is in the air. Decisions at the top of some of the region's most

DEAR SHAREHOLDER...

* CATERPILLAR

Caterpillar, the world's largest maker of construction and mining equipment, reported US$2.49 billion in Latin American sales for 2004, an annual increase of 37.1%. Sales in Latin America grew more than in any other region. Caterpillar expects another 12% to 15% bump in sales and revenues in 2005.

* ERICSSON

Global sales rose 12% in 2004 for Swedish telecom equipment maker Ericsson. Argentina and Brazil helped make Latin America once again its hottest region, with sales of US$2.19 billion. Ericsson credits growth in mobile infrastructure investment for the increase.

* CARREFOUR

Latin America was good news for French supermarket Carrefour. Sales rose 4.2% from 2003 on strong growth in Brazil and Argentina as well as steady numbers from Mexico and Colombia. It opened three hypermarkets and 55 discount stores in the fourth quarter of 2004.

Exit Strategy

Change is in the air. Decisions at the top of some of the region's most
influential non-governmental bodies could mean a revolution in aid and
development policies--or nothing at all. Here's a look at who's coming
going.--Greg Brown

In charge                Next stop              Replacement

Miguel Angel Rodriguez   Court; former Costa    In the running: Chilean
(Costa Rica)             Rican president is     Interior Minister Jose
Organization of          embroiled in           Miguel Insulza; Mexican
American States          corruption scandal     Foreign Minister Luis
                         back home              Derbez; former
                                                Salvadoran President
                                                Francisco Flores

Enrique Iglesias         Term expires in        Possible: Bolivian
(Uruguay)                2008, but rumored to   Enrique Garcia,
Inter-American           be considering a       president of
Development Bank         post elsewhere. No     Corporacion Andino de
                         decisions likely       Fomento; a Brazilian
                         till end of 2005       could be selected, but
                                                no names yet

James Wolfensohn         Could head back to     Possible: Carly
(United States)          Wall Street, but       Fiorina, ousted head of
World Bank               plenty of academic     U.S. tech giant HP;
                         and development        U.S. Deputy Secretary
                         posts beckon           of Defense Paul
                                                Wolfowitz; online
                                                gambling sites posting
                                                odds on Irish rock star
                                                Bono

Supachai Panitchpakdi    Expected to head the   Nominees: Carlos Perez
(Thailand)               United Nations         del Castillo (Uruguay);
World Trade              Conference on Trade    Jaya Krishna Cuttaree
Organization             and Development        (Mauritius); Luiz
                                                Felipe de Seixas Correa
                                                (Brazil); Pascal Lamy
                                                (France)

In charge                Quote

Miguel Angel Rodriguez   "Democracy is always fragile
(Costa Rica)             because it does not rely on the
Organization of          strength of the powerful." (LATIN
American States          TRADE)

Enrique Iglesias         "We are constantly examining
(Uruguay)                why there is still such wide ine-
Inter-American           quality in the region. That is our
Development Bank         biggest challenge." (The Banker)

James Wolfensohn         "My hope is there is a recognition
(United States)          now on behalf of the rich world
World Bank               that they cannot continue to be
                         rich if the world is destabilized by
                         poverty." (The Guardian)

Supachai Panitchpakdi    "It is only the WTO which can
(Thailand)               improve global rules for the con-
World Trade              duct of trade." (LATIN TRADE)

Organization