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UPDATE
Week ending July 13, 2003

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Galileo: contracts for the first satellites +++ CAE upgrades Tornado simulators +++ Joint support center for Tiger and NH90 +++ SWISS ourlines network cuts +++ Delta II launches second Rover to Mars +++ News in brief +++


Galileo: contracts for the first satellites
Erste Aufträge für Galileo-Satelliten

The contracts for the first Galileo satellites were signed on Friday 11 July at ESTEC, the European Space Agency's research and technology centre. "Galileo is taking shape with every passing day. These first contracts are symbolic of Europe's collective resolve to develop the first civil global satellite navigation system", stated Claudio Mastracci, ESA Director of Application Programmes. The contracts are for two experimental satellites, forerunners of the system's in-orbit validation phase with one to be launched during the second semester of 2005, so as to secure the frequencies reserved for the Galileo system with the International Telecommunications Union; the signals have to be sent by June 2006 at the latest in order to retain the priority allocated when the frequencies were applied for.  
One contract, worth EUR 27.9 million, has been awarded to the British firm Surrey Space Technology Limited. The main task of this test satellite, which will have a mass on lift-off of 400 kg, is to transmit the Galileo signals from one of the orbits to be used by the constellation. This satellite will also test various critical technologies that it will be flying, including the rubidium atomic clock and a signal generator. It will also measure the physical parameters of the orbit and the particular environment in which the future constellation is to operate. This will be Europe's first satellite placed in a medium-Earth orbit. In order to minimize risks of delays, launch failure, etc. a contract to build another test satellite has also been placed with the consortium Galileo Industries. This contract is worth EUR 72.3m.
This satellite, which will have a mass of 525 kg on lift-off, will be more representative of the four to be used to validate the Galileo system in orbit. With a payload very similar to that of the satellites that will form the complete constellation, it will serve to validate all the technologies to be flown. It might also be used in the system validation phase itself. Both satellites are expected to be launched by Starsem, the company which markets the Soyuz launcher from Baikonur.

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CAE upgrades Tornado simulators
Verbesserungen für Tornado-Simulatoren

CAE, teamed with STN ATLAS Elektronik GmbH, has received a contract from the German defence procurement organization BWB to upgrade a Tornado flight and tactics simulator with CAE's Medallion-S visual system. CAE's share of the contract is valued at approximately 9.3 million euros (C$14 million). The Tornado simulator, located at the German Air Force Flying Training Center at Holloman Air Force Base in New Mexico, USA, will be upgraded with a 13-channel Medallion-S visual system. A separate visual channel will provide simulation of the Tornado's Laser Designator Pod (LITENING), which will allow realistic weapons delivery training for laser-guided bombs. CAE will also provide its state-of-the-art database generation system and team with STN ATLAS for the on-site integration of the new visual system. CAE designed and delivered the original Tornado simulator in late 1999.
“The new visual system will significantly improve the training quality for our Tornado crews,” said Lieutenant (German Navy) Uwe Hess, Branch Chief Tornado Simulators in the German Air Force Material Command. “The Tornado flight and tactics simulator is one of the world's most advanced training means of its kind. After integration of the new visual system, crews can realistically train the complete range of tactical flying procedures, including employment of smart weapons and aerial combat maneuvers. The simulator and new visual system is also an essential contribution to flight safety, since emergency procedures can now be trained in an unprecedented way.” In addition to the Medallion-S visual system, the Tornado simulator will be upgraded with a new display system. The new 300-degree by 120-degree dome display system will be based on Avior Laser projectors from STN ATLAS.

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Joint support center for Tiger and NH90
Gemeinsame Wartung für Heereshubschrauber

With the objective of maintaining the mission capability of the Bundeswehr (German Armed Forces) weapon systems Tiger and NH90, a Systems Support Centre is evolving at Eurocopter Deutschland in Ottobrunn, representing the nerve center for the updating and advanced development of these two highly sophisticated weapon systems. In a call to establish this Centre, approx. 20 staff from the Weapon Systems Support Centre in Landsberg were welcomed at the Eurocopter facility in Ottobrunn on July 4, 2003 as the first core team of the military share of the Systems Support Centre, and introduced to their new colleagues from the industry.
Bert Stegkemper, General Manager of the Eurocopter Deutschland GmbH sites, described this cooperation as paving the way for transforming the Bundeswehr as well as the industry's efforts to match the new challenges it faces as a supplier and systems partner. The Systems Support Centre contributes decisively to maintaining the systems competence of the industry as well as to safeguarding the workplaces at the Eurocopter development facility in Ottobrunn. Brigadier General Berthold Buchholz, Commander of the Air Materiel Force, pointed out the outstanding importance of software competence for the Tiger and NH90 weapon systems. Establishing a joint military Centre for systems updating and modification by the Bundeswehr and the industry represents a logical step towards continuing the collaboration launched to develop and qualify the two systems.
In the joint Systems Support Centre, Eurocopter Deutschland and the Bundeswehr cooperate to update and modify the tactical and operational systems software for the two helicopters. Eurocopter aims to optimally support the Bundeswehr's requirements for use, consequently ensuring the customer's satisfaction with the product. Full scope of the Systems Support Centre will be completed in 2007.

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SWISS ourlines network cuts
Streckenstreichungen bei SWISS

Swiss International Air Lines continues to put its new business plan swiftly into practice.  The carrier's newly-devised route network retains services to all key business destinations around the world.  The company aims to achieve the business viability it requires by focusing on profitable and high-potential routes.  The new network, which will be introduced with the 2003/04 winter schedules on October 26, extends to 71 destinations and will be operated by a 79-aircraft fleet. SWISS is also making rapid progress with the further pillars of its new business plan. Discussions with suppliers over volume and cost reductions are proceeding well; and the company's unions have also indicated a willingness to contribute to the turnaround desired.
The new SWISS network puts a clear focus on profitable and high-potential routes and destinations. The modifications called for under the new business plan are essential if the company is to achieve the profitability required within a reasonable timeframe. The new European network will extend to 41 destinations (compared to the current 56). By streamlining its network and aligning aircraft size even more closely to market demand, the company aims to raise European seat load factors above 60 per cent.  On the intercontinental front, SWISS will continue to serve its 30 most important destinations (ten fewer than at present).

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Delta II launches second Rover to Mars
Mars Rover gestartet

“Opportunity,” the second of two NASA rovers that will land on Mars, was launched by a Boeing Delta II launch vehicle from Space Launch Complex 17B, Cape Canaveral Air Force Station, Fla. Liftoff occurred at 11:18:15 p.m. EDT. Approximately 80 minutes into the flight, “Opportunity,” or Mars Exploration Rover (MER)-B, was deployed in its proper trajectory and is scheduled to land on Mars Jan. 25, 2004. The first rover “Spirit,” or MER-A, launched on June 10 by a Delta II, is scheduled to land on Mars Jan. 4, 2004. “Opportunity” was launched aboard the new Delta II Heavy that features nine 46-inch diameter, stretched solid rocket boosters that provide increased lift performance to augment the Boeing Rocketdyne RS-27A main engine. The Delta II Heavy increases the performance of the Delta II by more than 20 percent to low-earth orbit.
“Spirit” and “Opportunity” will roam Mars and activate panoramic cameras to image Mars' surface and sky. Using precision instruments, the Rovers will examine samples of the terrain to help scientists determine if potential past water activity could have supported life on the Red Planet. Communication with scientists on Earth will be enhanced by the Mars Odyssey spacecraft as a relay station, which is orbiting Mars. The next Delta launch for NASA will be the SIRTF (Space Infrared Telescope Facility) mission aboard a Delta II Heavy from Cape Canaveral in August.

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NEWS IN BRIEF / KURZMELDUNGEN

On Friday 4 July, and Saturday 5 July 2003, engineers successfully carried out overnight tests on the Mars Express lander, Beagle 2. Ground controllers at the European Space Agency's Operations Centre in Darmstadt, Germany, contacted Mars Express at the weekend to carry out the tests on the lander, which were rescheduled from two weeks ago. These functional tests included uploading software and switching units on and off. With these tests, the near-Earth phase of the Mars Express payload check-outs is almost complete. All instruments, including the lander, have performed as expected. Star calibration of some instruments is scheduled for mid-July, which marks the first attempt to make scientific measurements.
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Lufthansa is raising its stake in Air Dolomiti to 98.8 per cent, largely by acquiring the 23.7 per cent share of the Italian regional airline's equity held by its founder Domenico Alcide Leali. Following the increase in Lufthansa's stake in Air Dolomiti on 16 April from 20.7 per cent to 51.9 per cent, Lufthansa made - in accordance with Italian law - a public offer to purchase the stock held by all Air Dolimiti shareholders. That offer closed on 27 June: Effective 8 July, the shares acquired in the takeover offer will be transferred into Lufthansa's ownership. Lufthansa will acquire the remaining shares in a “squeeze-out”. The shares will be de-listed from the Milan stock exchange on 9 July 2003. The acquisition is a further step in the close cooperation in which Lufthansa and Air Dolomiti have engaged since 1994. As a a top-flight feeder into Lufthansa's Munich hub, Air Dolomiti has regularly posted two-digit growth rates. As the biggest foreign carrier in Munich, the Italian regional airline has made a major contribution towards the evolution of the hub into its present eminent position in Europe. Air Dolomiti is Italy's most succcessful regional carrier and the holder of numerous awards, among them the Regional Airline of the Year Award 2002. It operates a modern fleet of 21 aircraft, linking destinations in north and central Italy with airports in Germany and other European countries.
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U.S. investigators have strong new evidence that a piece of space shuttle debris caused the disintegration of the shuttle Columbia in February. A ground test has found that a piece of hard foam can seriously damage a shuttle wing, despite the U.S. space agency's early assertions to the contrary. A shuttle wing test at the private Southwest Research Institute in San Antonio, Texas, has left little doubt about what made a hole in Columbia's left wing, causing it to break up over Texas during re-entry. In the San Antonio wing test, engineers duplicated the liftoff events by using a cannon powered by compressed gas to fire a piece of fuel tank foam at a replica of a shuttle wing. A spokesman for the investigators, Air Force Lieutenant Colonel Woody Woodyard, said the experiment left a gaping 40-centimeter hole in the model wing's leading edge. "This certainly is strong evidence that can lead one to conclude that this was a direct cause," said Colonel Woodyard. The test was the seventh the investigators conducted and appears to be the most conclusive because it came the closest to copying the actual foam strike. The foam weight and size was about the same as the piece that hit the wing - 750 grams and about the dimensions of a briefcase. The impact speed was more than 850 kilometers per hour.
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Enstrom Helicopter Corporation has been chosen by the Indonesian National Police to deliver 18 helicopters over the next 12 months. Enstrom's 480B turbine will modernize their helicopter fleet in support of typical security mission profiles in its demanding hot and humid environment. Other finalists competing for the contract, which was signed last week, were Schweizer and Eurocopter. “This is a big win for Enstrom Helicopter Corporation,” said President Peter Parsinen. “The Indonesian announcement is a very important international endorsement stating that Enstrom is a top competitor in building quality helicopters for police agencies around the world. The Indonesian police are a very professional organization and great to work with. The 480B's performance and price more than fill all the requirements to perform the police's important security role.”
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Boeing and The Insitu Group last week signed a new long-term contract that will allow the two companies to continue collaborative efforts and begin production on the low-cost, long-endurance ScanEagle autonomous unmanned aerial vehicle (UAV). The contract, which has the potential to run for up to 10 years, follows a 15-month agreement signed in February 2002 to develop a prototype UAV based on Insitu's Seascan miniature robotic aircraft. As part of the initial agreement Insitu will deliver three prototype vehicles to Boeing in the coming weeks.
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Goodrich has entered into an agreement with easyJet to provide nacelle and thrust reverser Maintenance Repair and Overhaul (MRO) work. The 10-year contract covers work for the easyJet fleet of B737-300, -700, and 320 family. The nacelle and thrust reverser MRO work will be performed at the company's Prestwick, Scotland Service Center. According to Curtis Reusser, President of Goodrich's Aerostructures division, "We're pleased to be providing this new MRO work to easyJet. It's a continuation of our strong relationship. This contract is also evidence of the growth potential for our Prestwick-based MRO operations. We have just broken ground on a new 120,000 square-foot, state-of-the-art facility. The site's location allows us to easily service not only European customers, such as easyJet, but also Middle Eastern and African customers. Starting next June, the new facility will be up and running." An existing Goodrich Prestwick facility is situated one mile from the site of the new construction.
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Raytheon and the U.S. Navy successfully completed their third technical evaluation flight, designated DT- 7, of the Raytheon-produced Tactical Tomahawk July 9 at the Naval Air Systems Command sea and land test ranges in Southern California. "We are extremely pleased with this highly successful first underwater launch from a U.S. Navy submarine," said Jon Jones, vice president, Raytheon Missile Systems Strike product line. "We are particularly proud that the honor of the first submarine firing went to the Navy platform bearing the name of our city." Launched from USS Tucson, DT-7 marked the first launch of a Tactical Tomahawk missile from a U.S. Navy nuclear powered attack submarine. This was the third of four launches that the U.S. Navy will conduct during its technical evaluation period.
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Jean-Paul Herteman, Chairman and CEO of Snecma Moteurs, and Yuri Lastochkin, Director General of NPO Saturn, today signed the official agreement to build an open-air test stand for the SM146 engine that will power the new Russian Regional Jet (RRJ). The RRJ family is being developed by Sukhoi in conjunction with AK Ilyushin, and with support from Boeing. The agreement was announced during the inauguration of an exhibition on General Charles de Gaulle in Moscow, attended by Dominique de Villepin, French minister of foreign affairs, Michèle Alliot-Marie, French minister of defense, and Alain Juppé, French deputy and mayor of Bordeaux. The ceremony took place at France's Russian embassy. Also attending were Michail A. Pogosyan, general director of Sukhoi, and Claude Blanchemaison, French ambassador to Russia.
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BAE Systems has received a $17.3 million U.S. Air Force contract to produce 24 QF-4 aerial targets. QF-4 aerial targets are F-4 fighter aircraft modified into full-scale drones. The remotely piloted aircraft are used by the military as realistic targets in test and training exercises. The contract is the ninth lot in a series of awards that BAE Systems Flight Systems in Mojave, Calif., is working on to provide Full-Scale Aerial Targets (FSAT). Deliveries will begin in August 2004. Flight Systems is also expecting to be awarded Lots 10 through 14 in February 2004 for work through 2010.
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Lockheed Martin announced that Harris Corporation and Embraer have joined its team in the competition to develop the U.S. Army's next generation Intelligence, Surveillance and Reconnaissance system, known as the Aerial Common Sensor (ACS). The Lockheed Martin-led team is currently conducting architecture development activities as part of a 15-month Component Advanced Development contract awarded in 2002. Lockheed Martin was one of two contractors selected in 2002 to continue development of the ACS system as a result of a competitive Concept Exploration design phase.
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CAE's development of the world's first Airbus A380 full-flight simulator is part of an integrated training solutions agreement signed with Airbus. The total value of the contract is estimated at C$55M. The program calls for CAE to provide the aircraft manufacturer with a complete range of training devices for the A380, including two full-flight simulators equipped with the CAE Tropos visual system, CAE Simfinity three-dimensional maintenance/flight training devices, software licenses for CAE Simfinity desktop and laptop trainers as well as briefing/debriefing stations. The first full-flight simulator will be sent to Airbus's Toulouse center early 2005 for final development and will be ready for training at the end of 2005. The second simulator will also be ready for training at the end of 2005.
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The NASA Mishap Investigation Board (MIB) that is probing the causes of the in-flight mishap that led to the loss of the Helios Prototype solar-electric aircraft June 26 has completed the on-site portion of their task at the U.S. Navy's Pacific Missile Range Facility (PMRF) on the Hawaiian island of Kauai, and will now turn towards coming up with a probable cause of the accident. An interim status report released by the Mishap Investigation Board July 8 indicates the Helios Prototype appeared to have experienced undamped pitch oscillations that led to a partial breakup of the aircraft in mid-air while flying at about 3,000 feet altitude in restricted test range airspace over the Pacific Ocean about 10 miles west of Kauai. The Helios Prototype had been aloft for about a half-hour on the second of two checkout flights leading to a planned long-endurance flight demonstration later this summer, using power from its solar arrays by day and from an experimental fuel cell system at night. The fuel cell system had not yet been turned on when the mishap occurred.
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A £350 million aerospace factory built for plane maker Airbus, was officially opened by the Prime Minister, The Rt. Hon. Tony Blair MP. The 83,500 square meter (over 900,000 square feet) facility, reckoned to be the largest factory built in the UK in recent years, has been constructed alongside the existing Airbus factory in Broughton, North Wales. To be known as the 'West Factory', it has been built to house wing assembly for the double-deck, 555 seater A380 airliner as well as other aircraft manufacturing activity. The Prime Minister said: "I am delighted to be asked to officially open the new West Factory and to see for myself the excellent work being done here at Airbus. The order book shows the commercial attraction of the world class product being made here. And is a powerful tribute to the dedication and commitment of the highly skilled workforce. I am delighted that the Government has been able to invest in that effort.” "This impressive new factory is creating 1,200 new jobs, in addition to the 5,000 already here, making a strong contribution to the local and national economy. I would like to welcome the long-term commitment Airbus is making to UK manufacturing."
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Air Plus Comet became the world's first operator of a Boeing 737-300 with advanced-technology blended winglets and the latest carrier in Spain operating Boeing airplanes.
The winglets, which curve out and up from the plane's wing tips, improve an airplane's performance and allow it to fly more than 185 kilometers farther than a 737-300 without winglets.
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In the first six months of 2003, SWISS carried a total of 5.3 million passengers on its scheduled flights. SWISS continues to be challenged by strong competition and the continuing weak economic environment. The average seat load factor from January to June was 68.7%. On the European network, an overall seat load factor of 54.7% was achieved during the first six months. This figure is marginally below the previous year level of 55.0%. This half-year figure reflects a weak first quarter, with demand picking up strongly in May and June. The seat load factor in June was 66.0%. In the first six months, high seat load factors were achieved on services to Ireland, Sweden, Denmark, Romania, Norway and the Czech Republic. These results benefit from the implementation of the previously announced measures concerning the use of smaller aircraft and/or reductions of frequencies on these routes. The reduced demand in Germany, Italy, Luxembourg, the Netherlands and the UK resulted in seat load factors below expected targets on these services.
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Lufthansa is raising the number of long-haul destinations it serves out of Munich in its winter flight schedules. With Miami and Dubai, the winter timetable lists two new attractive newcomers available from Munich Airport's newly inaugurated, highly modern terminal reserved exclusively for Lufthansa and Star Alliance partners at the south German hub. "We have weathered the worst of the downturn and preparing for new growth ex Munich," said Ralf Teckentrup, Executive Vice President Lufthansa Passenger Airlines. "To serve our customers with an attractive timetable, we have decided to react quickly and flexibly to signs of an incipient upturn and emerging market opportunities." He announced simultaneously that Lufthansa is also resuming flights out of Munich to the popular winter destinations of Johannesburg/Cape Town.
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The continuing economic downturn, the impact of the Sars virus and the Iraq war weakened demand in air traffic in the first half 2003. Nevertheless, Lufthansa increased its passenger count and maintained utilisation at a high level through flexible capacity management. From January to June this year, 21.6 million passengers flew with the Group's airlines, 2.6 per cent more than in the first half last year. While available capacity rose by 3.8 per cent, sales increased by 1.2 per cent. The generally difficult operating environment made it impossible to sell all the increased capacity in the market. Accordingly, the passenger load factor was down by 1.9 percentage points to 71.9 per cent. The weak economy continued to affect cargo business. Lufthansa Cargo transported 4.4 per cent less freight and mail in the first half, with the result that the cargo load factor fell by 2.4 percentage points to 64.8 per cent. The overall load factor (passenger and cargo business) at the Lufthansa Group dipped by 2.1 percentage points to 68.8 per cent. The worst crisis yet in the air traffic industry has meanwhile bottomed out. At the end of June, Lufthansa promptly raised capacities on routes to North America and Asia in a rapid response to emerging market opportunities. In face of a pick-up in demand, flexible capacity management has also proved to be a special strength of the Lufthansa Aviation Group.
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Boeing announced its partners for a demonstrator airplane project aimed at exploring the use of fuel cell technology for future aerospace applications. The research project, led by the Boeing Research and Technology Center in Madrid, Spain, includes Intelligent Energy (UK), Diamond Aircraft Industries (Austria), the Spanish companies Sener and Aerlyper, and Advanced Technology Products (ATP), from the United States. The project will evaluate the potential application of fuel cell technology -- which is cleaner, quieter and more efficient than current gas turbine technology -- for future commercial airplane products. As part of the evaluation, the project will develop and flight-demonstrate an electric-motor-driven airplane powered by fuel cells.
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Goodrich Corporation, in conjunction with JET Engineering LLC, is now able to offer an innovative engine exhaust nozzle that will enable MD-80 aircraft to comply with new noise legislation. In addition to substantial noise reduction benefits, the new nozzle configuration which was certified by the FAA last month, also results in potential fuel savings and lower operating costs for MD-80 aircraft owners and operators. Goodrich's Aerostructures division in Chula Vista, CA will supply the exhaust nozzles to interested MD-80 operators. In addition, the company's worldwide service centers will modify the MD-80 thrust reverser assemblies to accept the nozzle and provide on-going support and technical services to airlines that elect to modify their fleets.
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The Meltem contract, which was signed in September 2002 by Ali Ercan, the Turkish Undersecretary for Defence Industries, and José Massol, Senior Vice-President, Group Executive, Thales Airborne Systems Business Group, has now come into effect and this major programme is now officially launched. Thales was selected as prime contractor for the programme, worth around US$400 million, to supply nineteen maritime patrol and surveillance systems for Turkey's Navy and Coast Guard. Nine systems will be integrated into existing CN235 aircraft operated by Turkish armed forces and a further ten into new platforms, for which a call for tenders has been issued. The Thales solution is based on the powerful Amascos system (Airborne Maritime Situation and Control System), which is designed around up-to-date tactical command subsystem with the latest-generation Thales sensors suites including radar, ESM, acoustic and communication systems.
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Summaries of previous UPDATES are still available:

*July 6, 2003 *June 29, 2003 *June 22, 2003 *June 15, 2003 *June 8, 2003 *June 1, 2003

*May 25, 2003 *May 18, 2003 *May 11, 2003 *May 5, 2003

*April 27, 2003 *April 20, 2003 *April 13, 2003 *April 6, 2003

*January - March 2003

*January - December 2002 *January - December 2001 *January to December 2000 *January to December 1999 *January to December 1998 *January to December 1997 *September to December 1996


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