By TOM FOWLER Houston Chronicle

There may be a song or two by pop band 'N Sync that University of Houston business student Derrick Hinton finds catchy, but the last thing he wants is to be caught in public buying a record by the boy band.

Those conflicting desires -- to own a certain song without paying for an entire album -- were the sparks behind WaveLength, the business plan Hinton and his fellow students presented this week at the third annual Southwest Business Plan Competition at Rice University.

The UH team's plan to place kiosks in music stores charging consumers to mix their own CDs one song at a time was just one of the 30 business plans presented by students from around the world, all of them trying to convince judges that their plans were worth investing in.

At stake is real cash, $15,000 for the first place team, and a chance to compete in the Moot Corp. business plan competition at the University of Texas in Austin later this month, where the top prize is a $100,000 investment.

None of the three local teams -- also including one from Rice and one from Texas Southern University -- made it to the finals.

But the chance to hone presentation skills and receive feedback from business executives and investors is a rare opportunity, said Steve Currall, director of the Rice Alliance.

"Putting these students before these judges, who are experienced early-stage investors, venture capitalists or entrepreneurs, is something you can't get in a classroom," Currall said.

"This is our third year as a qualifying event for Moot Corp., so we're pleased to get so much participation by such good teams and judges."

The student business plans come to the competition in different states of readiness, from previously incorporated companies -- such as the plan presented by Rice University's team -- to concepts that are still in the strategic planning phase, such as that from TSU.

Rice University's team, EDProtocol, is developing a Web-based software package to help hospital emergency departments manage the many regulatory demands of observation centers where patients are held for several hours to determine if they need to be admitted.

Brian Hoogendam, a second-year Rice MBA student, said he first heard about the idea last summer when a group of Memorial Hermann Hospital technicians approached local venture capital firm, Genesis Park. The firm passed on the idea, but Hoogendam later helped the technicians further develop the idea, along with teammates Peter Blach and Emily Seigle, who are refining a version of the system.

"We've bootstrapped this thing so far, using our own money, but we really want to keep working on this after we graduate," Hoogendam said.

The team from TSU, which has never participated in such a competition, presented their plan for the EZ Talk line of combination jewelry/cell phones late Friday.

Clad in conservative dark suits like most of their competitors, the four-person team stood nervously at the front of a lecture hall before more than a dozen judges.

Dominique Nelson, the team's chief technology officer, described the basic look of the planned product -- a bracelet with the cell phone receiver, matching earrings that will double as headphones and a necklace will be the microphone. The bracelet will have four speed-dial buttons, he explained, will hook up to a dial pad for programming and have a carrying case that doubles as a charger.

Veronica Lopez, a TSU MBA student who also works for the U.S. Customs Service, described the team's market research, namely a search for similar products and surveys of potential customers in the Houston area.

Johan Nel, a business professor from South Africa attending TSU, detailed the team's research methodology.

The team's chief executive officer, Regina Pyrtle, hit the judges with the numbers: a need for a $8.5 million investment, plans for 20,000 unit sales in the first year and cash flow of $120 million in five years.

After the 10-minute presentation, the judges wasted little time going for the jugular.

Rod Canion, the co-founder of Compaq Computer Corp., pressed the company to detail the technology to be used in the devices. Nelson said the team planned to use existing cell phone technology combined with short-range wireless devices using the Bluetooth standard, but he admitted that the team had not developed a prototype.

Benjamin Brochstein, a Houston entrepreneur, asked about the barriers the startup team would face bringing such a product to market, particularly how the team could compete if an established company like Armani were to develop a similar product.

"We would expect our patent to protect the idea from piracy," answered Pyrtle, but when she noted that IBM has plans for a similar device in the future, some judges seemed to immediately lose interest, sensing an unbeatable competitor to the young business.

Immediately after the presentation, the EZ Talk team was upbeat and almost giddy with relief at having the presentation behind them.

"That `barriers' question sort of caught us off guard a bit, but I think we did well," Nelson said.

Judges said this year's batch of competitors is the best they've seen at the annual event.

"They've been the best prepared group and have really great ideas that a lot of us would love to invest in," said David Archer, chief operating officer for Petrotechnical Open Software Corp.

Even without a win at Rice this week, the local teams are far from giving up. EZ Talk said they would consult with their advisers about where else to look for funding, while EDProtocol is still on schedule to deliver a product to its first customer this spring. And just a few weeks ago at another competition, the WaveLength team was approached by a representative from Kodak who proposed manufacturing the in-store CD-recording machines.

"We never would have thought of Kodak, but he pointed out that the company already has hundreds of machines in stores around the country capable of burning photos onto CDs," Hinton said. "We plan to meet with them soon. That's a real breakthrough for us."

Twin Cities Posted on Sat, Apr. 05, 2003

Mobil part of bribery probe

U.S. federal prosecutors said Friday they are looking at Mobil Oil Corp. as part of the investigation into bribes paid by Americans to secure lucrative oil contracts in Kazakhstan. Assistant U.S. Attorney Peter Neiman made the disclosure as New York businessman James Giffen pleaded innocent to conspiracy, money laundering and tax charges. He is accused of extending more than $78 million in bribes in the 1990s to two senior Kazakh officials. Exxon Mobil of Irving, Texas, said the company has no knowledge of any illegal payments made to Kazakh officials by any current or former Mobil employees. On Wednesday, retired Mobil executive J. Bryan Williams was indicted on charges that he evaded taxes on a $2 million kickback he allegedly received for finalizing a 1996 deal between Mobil and Kazakhstan.

EU Bank chief likely to extend term

Wim Duisenberg looked certain Friday to extend his term as European Central Bank governor for at least three months while his designated successor seeks to extract himself from a French banking scandal. European Union finance ministers are likely to ask Duisenberg today to stay on beyond his scheduled July 9 retirement. Bank of France Governor Jean-Claude Trichet is being tried in Paris on fraud charges, complicating his position as ECB successor. The EU ministers, starting a two-day meeting, also focused on the potential impact of the Iraq war on Europe's already sluggish economy.

Russia accepts loan to combat AIDS

Russia accepted a $150 million World Bank loan to combat the rapid spread of AIDS and tuberculosis in the country, World Bank officials said Friday after four years of negotiations. The World Bank first offered the loan in 1999 but disagreements over bank rules delayed the project. Russia objected to World Bank rules requiring monitoring of patients receiving medication, the bank said. AIDS came relatively late to Russia but spread rapidly, primarily from intravenous drug abuse and a lack of prevention programs.

Venezuelan Central Bank rebuffs Chavez

Venezuela's Central Bank rejected President Hugo Chavez's demand that it impose fixed interest rates for private banks. The Central Bank won't accept "pressure from anyone" to impose rates, director Domingo Maza Zavala said. On Wednesday, Chavez demanded the Central Bank force private banks to lower their borrowing rates, which range from 25 percent to 40 percent. Chavez argued the high rates were hurting small businesses and the government, which faces $4.6 billion in domestic debt payments this year. Venezuela's domestic debt totals $9 billion.

BY AMY REEVES <a href=www.investors.com>INVESTOR'S BUSINESS DAILY

The world seems like such a dangerous place these days, many people would rather stay home. But firms that depend on international trade don't have a choice in the matter.

"There's anthrax, ricin, Ebola, war, the uncertainty of the economy," said Peter Rose, chief executive of Expeditors International of Washington Inc. (EXPD) "And then the good news is - there isn't any."

Expeditors is a freight-forwarding company. It's like a travel agent for goods. It doesn't do shipping itself, but connects clients with the right shippers and smooths the way through customs and other hassles.

In troubled times like these, many companies need such firms, says analyst Jon Langenfeld of Robert Baird.

"Their ability (to grow) is going to be much better in times of change, where there's stress in the system," said Langenfeld, who has no financial relationship with Expeditors.

"That allowed companies like Expeditors to take advantage of that, and show the value of their services. Shippers are going to increasingly rely on their trusted logistics partners."

It helps that Expeditors is already one of the more trusted names in the business. Though the industry is fragmented, with no firm claiming more than single-digit market share, Expeditors is one of the top 10 in size. It's been around since 1979, and now has 167 offices all over the world.

 Image: The World Over

Another factor that boosts Expeditors' trustworthiness? It's not for sale. Although the freight industry has been consolidating for years, Expeditors has steadfastly refused to either be bought or make any major purchases itself.

"That bodes well for customers, vendors and employees because it takes away a lot of uncertainty," Rose said. "People say 'never say never' and 'everything has its price.' It's not about the greed and the avarice here. It's about growing this place and leaving a legacy for the young people coming up."

Since Expeditors depends on the quality of its service to compete with rivals, the quality and loyalty of the work force is important to Rose. He says employees did a heroic job last fall, when the longshoreman's union went on strike and shut down ports on the West Coast for two weeks. It became a logistical nightmare, as cargo ships were stranded on the ocean for days.

Overall, the strike helped the business, since customers found they needed experts like Expeditors all the more. But it greatly strained some employees, especially in Asia.

"There were people in the Hong Kong and Shanghai offices who were literally sleeping at their desks," said Rose. "I mean, taking a short nap there and going right back to work. But through all that, we came out unscathed."

The hard work did not go unappreciated. The head of the Taiwan office bought gifts at Tiffany's for all the workers as a reward.

This focus on employees and refusal to be bought may seem out of sync with business today. But Langenfeld says Wall Street appreciates Expeditors' ethic.

"I think investors recognize the power of its internal growth, the discipline of its management and have rewarded it with a premium valuation," he said. "The results are there. If you look at some other companies that have gone the acquisition route, few have been successful."

The results are indeed there. In the fourth quarter, the firm made 33 cents a share, up 32% from the prior year. Revenue grew 41% to $691.2 million.

For the year, profit rose 16% to $1.03, on 22% revenue growth to $2.3 billion.

Rose says growth has been especially strong in China, which he calls a "hot" market. Now with 20 offices on the mainland, Expeditors is pushing from the usual export-heavy coastal cities into interior centers like Xian and Chengdu. Langenfeld projects export volume growth of at least 8% per year for the foreseeable future.

Another fast-growing market is more of a surprise: Latin America.

"It's quite an accomplishment with everything going on - the devaluation of the peso in Argentina, the internal strife in Venezuela. And the Brazilian economy wasn't all that good," said Rose. "Yet we came out of it rather well."

The firm has been having a little more trouble in Europe, which takes up about a quarter of the business. Although the financial performance has been solid, management felt it was losing out on potential business because workers didn't have enough of Expeditors' service-oriented culture. A series of regional meetings helped with the problem, Rose says.

"It was a revitalization," he said. "We were trying to get everybody on the same page. It was a reaffirmation of the culture, which we thought had been lacking."

Expeditors doesn't do a huge amount of business in the Middle East, but it's had to make some adjustments for the war. Air routes have been rerouted to avoid trouble spots. Not surprisingly, the Kuwait office has been pretty quiet. But Rose takes comfort in the fact that the same thing is happening to his competitors.

"We're doing no worse than anybody else," he said. "We just want to see it over with."

Analysts expect Expeditors to make $1.20 a share this year, up 17% from last year. Next year they see profit up another 17% to $1.40

<a href=www.zwire.com>United Press International. April 04, 2003

RIO DE JANEIRO, Apr 04, 2003 (United Press International via COMTEX) -- Brazil's state-run oil company is facing new hurdles in its proposed purchase of an Argentine energy firm, which would be one of Latin America's largest acquisitions in the past year. The Argentine government -- including President Eduardo Duhalde -- has been opposed to the deal, and the fight is taking on political undertones.

A ruling by an Argentine antitrust body regarding the majority-stake, $1.03 billion sale of Perez Companc to Brazil's Petrobras has been delayed and is now not expected for weeks.

But Duhalde and his team have been clucking ever more loudly in the past week, raising concerns of a Brazilian monopoly of key sectors within Argentina's borders.

A government spokesman told reporters that Duhalde informed top Perez Companc officials during a Thursday phone call that he disapproved of the sale.

Of particular concern to Duhalde and other members of government is a 32.5-percent share of the electricity distributor Transener that Petrobras would take if the deal went through as is.

Transener -- Argentina's largest supplier of high-voltage electricity -- is vital within "a strategic sector for the development of national industry," Duhalde told the company officials, according to presidential spokesman Luis Verdi.

A cynical Argentina watcher -- of whom there are a few -- might also note that this battle for national industrial pride is coming just three weeks before a presidential election.

Duhalde, not wanting to see yet another huge domestic company fall into the hands of foreigners, might just be drawing a line in the sand, at least one that won't blow away until after he sees his hand-picked successor elected on April 27.

Additionally, critics of Duhalde say his posturing is hypocritical, considering that more than 30 percent of Transener is already controlled by the U.K.'s National Grid.

Anibal Fernandez, Argentina's minister of production, told the La Nacion newspaper Friday that the government will emit a strong statement against the sale of the Transener stake next week.

He hinted that the government may expand its opposition to the deal as a whole, again citing control of a vital sector being in the hands of foreign company which is itself controlled by a foreign government.

It was last October that Petrobras announced it would pay $1.03 billion in cash and debt for a 58.6 percent share of Perez Companc.

The sale would transfer to Petrobras control of Perez Companc's vast holdings in the gas, oil and electricity sectors within Argentina, as well as Brazil, Venezuela and Ecuador.

Argentine officials also point out that Perez's 38 percent stake in natural gas distributor Transportador de Gas del Sur would also end up in Petrobras' hands.

Duhalde has criticized the Petrobras deal before.

He registered concerns during a January visit to Brazil when he met with then newly elected President Luiz Inacio Lula da Silva.

But Lula rejected arguments against the deal, according to Argentine officials, saying that the sale of Perez Companc shouldn't have restrictions placed on it.

But with the Argentine elections so close and growing political voices crying foul on the Petrobras buy, it is clear that Duhalde's team would like to see the deal disappear for some time, analysts say.

Fernandez told La Nacion that government officials are working hard to find a legal way to block at least the Transener part of the deal, which would make Petrobras Argentina's leading electricity distributor, according to the government.

Or alternatively, Fernandez said, Perez Companc could sell the stake in Transener to a domestic company.

Which likely gets a bit closer to the heart of the matter.

There has been speculation in the Argentine press that officials from other domestic energy companies -- Techint, Pescarmona, and Roggio & Cartellone -- are pressuring Duhalde to force Perez Companc to sell Transener to one of them.

None of those three companies has officially voiced any interest in Transener.

For now, the Rio de Janeiro-based Petrobras and Perez Companc officials are remaining silent on the troubles their deal is facing.

But Eloi Rodrigues de Almeida, president of Grupo Brasil, which represents Brazilian business interests in Argentina, said he thought the deal would win out in the end.

He chalked up Duhalde's opposition to the Petrobras deal as being payback for other business battles between Argentina and Brazil, namely recent scrapes over the trade of sugar and wheat.

"If a company wants to sell, who can stop it?" he said.

By BRADLEY BROOKS, UPI Business Correspondent

<a href=www.zenit.org>ZENIT - The World Seen From Rome Date: 2003-04-05

WASHINGTON, D.C., APRIL 5, 2003 (Zenit.org).- On Monday Colin Powell released the U.S. State Department's "2002 Country Reports on Human Rights Practices." In his remarks the U.S. secretary of state reaffirmed his country's resolve to extend respect for human rights around the world.

The report comes at a time when the United States itself is under heavy criticism for its pre-emptive war on Iraq. Be that as it may, Powell explained that the Bush administration's efforts to improve human rights involves a variety of means: working with government leaders, non-governmental organizations, and free trade unions; fostering accountable governance and encouraging political, legal and economic reforms; channeling development assistance to nations that govern justly; supporting the rule of law, independent media, religious liberty and the rights of minorities.

The report gives detailed information on no fewer than 196 countries. Not all is negative. Positive developments included the progress in establishing democratic institutions in East Timor, and improvements in civil liberties in Taiwan. Turkey also approved laws covering freedom of speech, political activity and association, and fair trials.

In the Balkans, Bosnia and Herzegovina held its first general elections conducted by local authorities since the Dayton Peace Accords. Macedonia held elections, and its Parliament completed a number of constitutional and legislative reforms. In terms of political rights the report held out hope that Kenya's free election and peaceful transfer of power last December could mean a consolidation of democracy.

There was positive news concerning some domestic conflicts. Sri Lanka saw progress last year in the implementing of a cease-fire agreement between the government and the Liberation Tigers of Tamil-Eelam. Sierra Leone saw an end to its civil war, and peaceful elections were held in May.

An end to conflict also came about in Angola, where the former UNITA rebel movement has disarmed and is transforming into a political party. This has led to a notable decrease in human rights abuses, even though some problems remain. In Afghanistan the new regime has implemented human rights improvements, including women and ethnic minorities serving in the government. And an estimated 1 million girls are back in school.

Ex-Soviet republics

As for the bad news, the State Department reported problems in several republics of the former Soviet Union. In Turkmenistan an attack on President Saparmurat Niyazov's motorcade last November led to widespread arrests, forced evictions of suspects' families, use of torture, threats of rape and summary trials. In Kazakhstan an already poor human rights record worsened. Opposition leaders were selectively prosecuted and the media harassed.

Uzbekistan saw some positive developments, but there were also at least four deaths in detention due to torture. In Kyrgyzstan, harassment of the media continued, and police killed six unarmed protesters in one confrontation.

In the Chechnya conflict, Russian forces and Chechen rebels continued to commit serious human rights violations. The U.S. State Department accused government forces of committing extrajudicial killings and of using indiscriminate force, resulting in civilian casualties. For their part, Chechen rebels increased their killings of civilian officials and militia associated with the Russian-appointed Chechen administration.

Civil strife also led to widespread human rights abuses in Nepal. The Maoist guerrillas resort to killings, bombing, torture and forced conscription of children. Government forces, meanwhile, were accused of killing civilians and abusing others suspected of Maoist sympathies.

Asian powers assailed

The State Department had strong words concerning human rights in China: "Citizens lacked both the freedom to peacefully express opposition to the party-led political system and the right to change their national leaders or form of government."

While the Chinese Constitution provides for an independent judiciary, in practice the government and the Communist Party frequently interfered in the judicial process and directed verdicts in many high-profile cases. The various bodies making up the security apparatus were also accused of numerous human rights abuses. China's family planning policy also came in for criticism. Repressive measures include fines for those who have more than one child, forced abortion and sterilization, and obligatory insertion of IUDs.

China made efforts at the start of 2002 to improve the rights situation. It freed a number of prominent dissidents, allowed the Dalai Lama to visit, and reformed the legal system. But these positive developments were undermined by arrests of democracy activists, the imposition of death sentences without due process on two Tibetans, and the trials of labor leaders on "subversion" charges, the U.S. report said. As well, authorities rapidly suppressed religious, political and social groups that they perceived to be a threat to government power or national stability.

In North Korea, the government's human rights record remained poor, noted the report. Citizens cannot change the country's rulers, and the leadership "viewed most international human rights norms, particularly individual rights, as illegitimate, alien and subversive to the goals of the State and Party."

Failings in human rights include extrajudicial killings, disappearances, arbitrary detentions, torture, the lack of an independent judiciary, denial of freedom of speech, tight control of all forms of cultural and media activities, and restrictions on freedom of religion and worker rights.

Mixed results in Latin America

In Latin America the human rights situation is a mixed bag. In a number of other countries -- Argentina, Bolivia, Chile and Paraguay -- the report noted that in spite of some problems governments generally respected human rights.

Greater concern was expressed over Brazil. While the federal authorities do generally respected human rights, "there continued to be numerous serious abuses, and the record of some state governments was poor," noted the report.

State police forces committed many extrajudicial killings, tortured and beat suspects under interrogation, and arbitrarily arrested and detained persons. Police were also implicated in a variety of criminal activities, including killings for hire, death squad executions, extortion, kidnappings for ransom, and narcotics trafficking.

Elsewhere, the situation was even worse. Colombia had free and fair elections, but "the government's human rights record remained poor," according to the report. In spite of efforts to improve laws and institutional mechanisms, there was a lack of implementation.

Moreover, some members of the government security forces continued to commit serious abuses, as well as collaborating with paramilitary groups that committed serious abuses. As for the judiciary, it is inefficient, overburdened by a large backlog, and undermined by corruption and intimidation, the U.S. report said.

Guerrillas too, particularly the FARC, were responsible for a large percentage of civilian deaths. Guerrillas killed politicians, journalists, labor union members and numerous religious leaders. And the FARC continued to kidnap, torture and kill off-duty members of the public security forces. Guerrillas also continued to kidnap thousands of civilians to help finance subversion and put political pressure on the government.

In Venezuela, the government's human rights record remained poor. Vigilante killings, torture by the security forces, harsh prison conditions and arbitrary arrests were some of the abuses singled out by the report. President Hugo Chávez also came in for censure. His frequent criticisms of the media, opposition groups and the Church were interpreted by many "as tacit approval of violence."

Cuba, labeled as "a totalitarian state controlled by Fidel Castro," was strongly condemned for human rights abuses. A rubber-stamp Parliament, party control of the judiciary and security forces, active suppression of political opposition, prison beatings, and control of the media were some of the aspects covered in the report. Moreover, the security forces were accused of committing numerous, serious human rights abuses. Worldwide, civil liberties can still be a scarce commodity.