EX-CHIHUAHUA GOVERNOR DENIES ALLEGATIONS IN AD

Former Chihuahua Gov. Francisco Barrio Terrazas took out a full-page ad in
Juarez newspapers Tuesday denying allegations that he took protection money
from the late drug kingpin Amado Carrillo Fuentes while Barrio was
governor. "My person, my entire life, has been a book open to scrutiny and
will continue that way," Barrio's ad stated. "No one is ever going to find
anything shady in the origin of my personal assets."

Sunday, the El Paso Times published a story quoting a Mexican federal
attorney general arrest warrant alleging that Barrio had received money
from the late Carrillo in exchange for protection.

Mexican authorities said that the 2,433-page document is part of an ongoing
investigation into drug-trafficking, but that Barrio does not face charges
at this time.

The newspaper faxed copies of the allegations to Barrio's offices in Juarez
and Mexico City last week. Barrio did not respond and instead issued a
statement through paid ads in Mexican newspapers.

"It seems ... suspicious that these kinds of articles with accusations
against me should begin to appear within the context of (Mexico's)
political transition," Barrio's ad stated.

Barrio, a member of the National Action Party, or PAN, is being considered
by President-elect Vicente Fox for a new Cabinet-level post as the
"anti-corruption czar."

Eloy Morales, Barrio's spokesman in Mexico City, could not be reached for
comment Tuesday.

The allegations against Barrio made headlines in Chihuahua state this week
and were the subject of commentaries by radio and TV talk-show hosts.

The allegations were made by Tomas Colsa MacGregor, a professional jeweler
who was kidnapped, tortured and killed July 5, 1997, four months after
giving his statement to the Mexican attorney general's staff.

Colsa provided details about several Mexican drug traffickers, payoffs to
federal police, and Carrillo's alleged friendly relations with some governors.

He also gave information about former Mexican drug czar Gen. Jesus
Gutierrez Rebollo, whom U.S. drug czar Barry McCaffrey once described as a
man "of the highest integrity." The Mexican general was later convicted of
charges that he assisted Carrillo's cartel.