Arias, Fábrega, Sullivan & Cromwell and Arnold & Porter advise in note purchase offer

Panama's Arias, Fábrega & Fábrega and New York's Sullivan & Cromwell advised Salomon Smith Barney, Inc, as dealer manager of an international offer launched by the Republic of Panama to purchase up to US$245 million aggregate principal amount of 7.875 per cent Notes due February 13, 2002 for cash and warrants.