14.01.2005 – 18:52

Gramercy Advisors LLC

Gramercy Advisors LLC Rejection of The Argentina Exchange Offer

Greenwich, Connecticut (ots/PRNewswire)

The following news
release is being issued by Gramercy Advisors LLC:

We have been asked for a reaction to Argentina's Exchange Offer
that was made public earlier this week; an offer that we believe will
fail to resolve Argentina's sovereign default. Gramercy, for the
reasons outlined below, intends to reject the current offer, an offer
that is really only Argentina's first official offer made to the
market since Argentina defaulted on their obligations in December,
2001. We encourage other investors to follow suit.

Simple points which compel Gramercy to reject Argentina's current
exchange offer:

    1.  The offer is unilateral in nature. It is not a result of good faith
        negotiations.
    2.  The offer is not consistent with Argentina's capacity to pay.
    3.  The offer is not consistent with market precedents.
    4.  The offer fails to properly recognize and value past due interest
        claims.
    5.  The offer is Argentina's first real offer to creditors, hence it is
        just the beginning of negotiations not the end.
    6.  GCAB and its member organizations will remain in-place to represent
        creditor interests around the world.
    7.  Participating in the current exchange eliminates the possibility of
        higher recoveries.
    8.  The offer is not in accordance with Argentina's commitments under its
        IMF program.

Gramercy is on the steering committee of the US-based creditor
group, Argentina Bondholders Committee "ABC" as well as the Global
Committee of Argentina Bondholders, "GCAB." We will continue to work
within these groups for deal enhancements sufficient enough to merit
our participation in any such deal. We believe simple modifications
of the transaction could be effected which would significantly alter
the exit valuation of the deal. Absent of any such amendments, we
will seek to recover the contractual amounts due to us through
litigation and collection efforts. After having studied the exchange
offer, Argentina's intended payment methods and well established
precedents (Elliot vs. Republic of Peru, Pravin Banker vs. Republic
of Peru and Elliot vs. Republic of Panama and others) we expect
success in any such endeavor.

One of the positives of the current exchange offer is that
Argentina has now officially established a floor value for the
securities of approximately 30-35% of principal face value. We
interpret Argentina's current offer as an opening of negotiations
rather than the completion. As such, we will be working diligently
over the coming days and weeks to release a counter-proposal.

Sincerely,
    Robert Koenigsberger
    Co-Managing Partner

Web site: http://www.gramercyadvisors.com

Contact:

Robert Koenigsberger of Gramercy Advisors LLC, +1-203-552-1952