New extension of the suspension of certain

The Government issued Decree No 540/2005 (the “Decree”) in order to extend until December 10, 2005 the suspension of the application of Sections 206 and 94 par. 5 of the Argentine Companies Law No 19,550 (“Companies Law”), which respectively provides the mandatory capital reduction and liquidation of companies in the event of capital loss. The Decree was published in the Official Gazette on June 1, 2005 and has been in force since June 2, 2005.

The suspension of the application of Sections 206 and 94 par. 5 of the Companies Law was established by Decree No 1269/2002, issued on July 16, 2003 and by Decree No 1293/2003 issued on December 23, 2003. For further information please refer to “Suspension of mandatory capital reduction and liquidation in the event of capital loss”, published in Marval News # 8 of July 31, 2002 and “Extension of the suspension of mandatory capital reduction and liquidation in the event of capital loss”, published in Marval News # 24 of December 23, 2003.

The Decree also provides that corporations and limited liability companies that are obliged to file financial statements with the pertinent authority must fulfill the following requirements in order to be entitled to benefit from the extension granted by the Decree:

a) to have all the filings or otherwise fulfill with the required filings within 120 days after the Decree comes into force;

b) to file financial statements ending after the Decree comes into force in due time ;

c) financial statements closed after the Decree comes into force and the minutes whereby the financial statements are analyzed must express the company situation regarding the suspension of Sections 206 and 94 paragraph 5 of the Argentine Companies Law No 19,550.