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    Thursday, January 28, 2010

    Reuters - Oracle claims firm stole its intellectual property

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    Oracle claims firm stole its intellectual property

    Friday, Jan 29, 2010 12:28AM UTC

    SAN FRANCISCO (Reuters) - Oracle Corp has filed a suit against a little known rival that provides low-cost software maintenance services, in a case similar to one that Oracle is fighting against rival SAP AG.

    The lawsuit, filed in U.S. district court in Nevada on Monday, alleges that privately held Rimini Street stole copyrighted material using the online access codes of Oracle customers.

    Rimini Street Chief Executive Seth Ravin denied the allegations, saying in an interview on Thursday that his company had done nothing wrong.

    "We are going to fight this battle," he said. "The specific allegations we are going to be answering vigorously and aggressively when the time comes in court."

    Las Vegas-based Rimini Street sells updates and bug-fixes to Oracle's software for about half of what Oracle charges its customers. Ravin said his company booked about $150 million in business last year.

    The charges are similar to claims that Oracle made in a high-profile lawsuit against SAP's TomorrowNow business unit.

    Oracle alleges that SAP's Texas-based TomorrowNow business unit illegally used customer log-ins to steal copyrighted materials from Oracle's password-protected Web site.

    That case is due to go to trial in San Francisco federal court in November.

    Ravin is a co-founder of TomorrowNow, which SAP bought in January 2005. He founded Rimini Street in September 2005.

    Maintenance services are one of Oracle's core profit generators. That business generated $11.8 billion in its most recent fiscal year, or about half Oracle's total revenue.

    "We are committed to enforcing our intellectual property rights against those who steal or infringe" upon them, Oracle spokeswoman Deborah Hellinger said in a statement.

    (Reporting by Jim Finkle; editing by Carol Bishopric, Gary Hill)

    Reuters - AT&T profit rises 26 percent, plans more spending

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    AT&T profit rises 26 percent, plans more spending

    Thursday, Jan 28, 2010 8:0PM UTC

    By Paul Thomasch and Sinead Carew

    NEW YORK (Reuters) - U.S. consumers' obsession with using smartphones to find restaurants, surf the web and navigate city streets helped propel a 26 percent rise in AT&T's <T.N> quarterly profit -- but at a cost for the operator.

    The strain that wireless devices like smartphones and e-readers have placed on AT&T's network is such that the company announced on Thursday it will increase capital spending by about $2 billion this year, targeting improvements in its wireless service.

    The increase was unveiled as AT&T posted revenue and earnings that largely matched analysts' estimates, although its addition of 2.7 million net subscribers in the fourth quarter was nearly 1 million more than expected.

    Analysts did, however, point out that just 910,000 of those were the highly prized monthly bill-paying customers, compared with bigger rival Verizon Wireless' addition of 1.15 million postpaid users.

    Every new AT&T customer puts more demands on its network. Consumers have complained about service problems in cities such New York and San Francisco, where there are a high proportion of data-hungry iPhone users surfing the web on the go. AT&T is the exclusive U.S. carrier for Apple Inc's <AAPL.O> wildly popular iPhone.

    Given the strain on its network, AT&T's announcement yesterday that it will support Apple's iPad tablet is being viewed as a mixed blessing.

    To that end, AT&T will increase capital spending by up to 10 percent from 2009 to a range of $18 billion to $19 billion. The roughly $2 billion increase includes spending on wireless network capacity and wires connecting mobile towers.

    SLOW ECONOMIC RECOVERY

    The spending boost comes as AT&T, along with rivals like Verizon, complained of a sluggish economy.

    "Looking to 2010 we're modeling a slow recovery in the economy and employment," said Rick Lindner, chief financial officer of AT&T.

    But even in a weak economy consumers appear willing to buy devices like iPhone, which was activated on AT&T's network by 3.1 million customers in the quarter.

    Lindner said the high-profile iPad would come with "very positive" economics for AT&T because it neither has to share service revenue with Apple nor subsidize the price of the device.

    In contrast, AT&T's payment of hefty subsidies for the iPhone has made its profit margins slimmer than some analysts had hoped even as it brings millions of customers to its network.

    AT&T said it would expand wireless margins this year to the low 40 percent range from below 39 percent in the fourth quarter, and it set a long-term goal of margins around 45 percent. Verizon already produces margins in this range.

    While iPad will not hit the market for months, other similar devices are already helping AT&T.

    Analysts said, in fact, that the quarter's subscriber surprise came from the number of customers that AT&T added with wireless links to devices such as Amazon.com Inc's <AMZN.O> Kindle, Sony Corp's <6758.T> Reader Daily Edition, and the Barnes & Noble <BKS.N> Nook. In this "emerging devices" category, AT&T brought about 1 million users aboard.

    Devices such as e-readers are seen bringing in much less monthly revenue per customer than traditional cellphones, but since they are unsubsidized they offer healthy profit margins.

    "I don't want to overstate the value of it, but it's a very high profit margin business," said Piper Jaffray analyst Chris Larsen. "There is very little cost associated with the business -- it might be a low revenue per individual user business, but it's a high margin business."

    AT&T's quarterly earnings rose in line with Wall Street expectations to $3.01 billion, or 51 cents a share, from $2.40 billion, or 41 cents a share, a year ago, when it took charges for staff cuts and investment losses.

    Revenue fell nearly 1 percent to $30.9 billion, which met analyst estimates, according Thomson Reuters I/B/E/S.

    For 2010, AT&T said it would deliver "stable consolidated revenues and stable-to-improved consolidated operating income margins, leading to stable-to-improved earnings per share."

    Its shares were up 3 cents at $25.59 cents on NYSE.

    (Reporting by Paul Thomasch and Sinead Carew; Editing by Derek Caney and Steve Orlofsky)

    Reuters - Startpage launches anonymous Web search service

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    Startpage launches anonymous Web search service

    Thursday, Jan 28, 2010 2:2PM UTC

    By Georgina Prodhan

    LONDON (Reuters) - Search-engine company Startpage launched a service allowing users concerned about privacy to carry out Web searches and click on linked pages without being identified, tracked or recorded.

    Unlike mainstream search engines that gather commercially valuable information about user behavior, privately held Startpage (www.startpage.com) has focused on privacy since 2005.

    Startpage -- also known as Ixquick outside the United States and Britain -- had already offered private searching, but users would leave the company's protection when they clicked on a search result and entered a third-party website.

    The new service offers use of a Startpage proxy that means the user is invisible to all websites, though pages load more slowly since Startpage must first retrieve the contents and then redisplay them.

    "My wake-up call came last year," says Katherine Albrecht, who runs U.S. media relations and marketing for Startpage and who says she noticed Google Inc had installed a program monitoring users who typed in terms indicating they had influenza -- and was sharing the information with the U.S. Center for Disease Control.

    "I had been a privacy advocate for 10 years, but even so I was using Google just like everybody else," she said.

    The chief executive of Google, which dominates the global Web search market, outraged critics last month with comments in a TV interview. "If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place," Eric Schmidt said in a interview on news channel CNBC.

    "The reality is that search engines, including Google, do retain this information for some time," he said. "We are all subject in the United States to the Patriot Act. It is possible that that information could be made available to the authorities."

    In 2006, however, Google was the only major search engine to reject a U.S. Justice Department subpoena to hand over data, saying the demand violated the privacy of users' searches and its own trade secrets.

    Rivals Microsoft Corp and Yahoo Inc complied. Startpage does not keep information about its users on file, so it could not be forced to hand anything over.

    Startpage says it has been profitable for the last five years. It is funded by advertising including sponsored links that are matched to the content of Websites and searches, but not to user profiles.

    Startpage, which was founded in New York and is owned by private Dutch company Surfboard Holding BV, does not publish user numbers but says it had served over 1.2 billion searches as of December 2009.

    It also competes with Infospace's Dogpile, WebCrawler and MetaCrawler in metasearch, or returning results from multiple search engines. It is also exploring ways to offer private email.

    (Editing by David Holmes)

    Sunday, January 24, 2010

    Reuters - China paper slams U.S. for cyber role in Iran unrest

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    China paper slams U.S. for cyber role in Iran unrest

    Sunday, Jan 24, 2010 12:28PM UTC

    By Lucy Hornby

    BEIJING (Reuters) - China's Communist Party mouthpiece on Sunday accused the United States of mounting a cyber army and a "hacker brigade," and of exploiting social media like Twitter or Youtube to foment unrest in Iran.

    The People's Daily accused the United States of controlling the Internet in the name of Internet freedom after Secretary of State Hillary Clinton called for more Internet freedoms in China and elsewhere in a speech on Thursday.

    China on Friday warned that Washington's push against Internet censorship could harm ties.

    "Behind what America calls free speech is naked political scheming. How did the unrest after the Iranian elections come about?" said the editorial, signed by Wang Xiaoyang.

    "It was because online warfare launched by America, via Youtube video and Twitter microblogging, spread rumors, created splits, stirred up, and sowed discord between the followers of conservative reformist factions."

    China has blocked Youtube since March, the anniversary of uprisings in Tibet, and Twitter since June, just before the 20th anniversary of a crackdown on protestors in and near Tiananmen Square. Facebook has been down since early July.

    The People's Daily editorial asked rhetorically if obscene information or activities promoting terrorism would be allowed on the Internet in the U.S.

    "We're afraid that in the eyes of American politicians, only information controlled by America is free information, only news acknowledged by America is free news, only speech approved by America is free speech, and only information flow that suits American interests is free information flow," it said.

    Clinton's speech came shortly after Google revealed a sophisticated hacking attack, and said it might close its google.cn Chinese search engine if it could not find a way to offer a legal, unfiltered search service in China.

    "Everyone with technical knowledge of computers knows that just because a hacker used an IP address in China, the attack was not necessarily launched by a Chinese hacker," Zhou Yonglin, deputy operations director of the National Computer Network Emergency Response Technical Team, said in an interview carried in a number of Chinese newspapers on Sunday.

    Zhou mentioned an outage suffered by Chinese search engine Baidu on January 12 but did not mention that it was attacked by the Iranian Cyber Army, which had previously attacked Twitter, nor that Chinese hackers launched retaliatory attacks on Iranian sites the next day.

    The People's Daily also denounced a May ban on Microsoft's instant messaging services to nations covered by U.S. sanctions, including Cuba, Iran, Syria, Sudan and North Korea, as violating the U.S. stated desire for free information flow.

    (Additional reporting by Li Jiansheng; Editing by Elizabeth Fullerton)

    Friday, January 22, 2010

    Reuters - Tablet launch, earnings mean big week for Apple

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    Tablet launch, earnings mean big week for Apple

    Friday, Jan 22, 2010 10:31PM UTC

    By Gabriel Madway

    SAN FRANCISCO (Reuters) - Few events can steal the thunder from an Apple Inc quarterly earnings day -- an Apple product launch is one of them.

    The company releases quarterly results on Monday, but Wall Street is waiting for Wednesday, when Apple could unveil a new tablet computer that investors hope will be as huge a phenomenon as its iconic iPod and iPhone.

    The week could provide a pair of long-term catalysts for Apple's stock. But the company's shares often sell off right after major launches after months of rumor fuel big expectations.

    Little is known about the device, despite a rabid fan following speculating on everything from the component makers to its shape and form. Industry watchers are bullish. They say Apple's obsession to detail gives the so-called "iSlate" a big edge in a computer category that had been deemed a failure.

    "If Apple is going to design a product, then it's going to be the best design in the marketplace," said Broadpoint Amtech analyst Brian Marshall. "To bet that it's going to be a flop is a bad bet."

    Most analysts have not factored the tablet into estimates for fiscal 2010, but sell-siders have been busy lifting price targets on Apple's stock in the past month.

    To be sure, Apple is setting itself quite a task, one that has frustrated previous attempts: to sell consumers on the value of a device that sits somewhere between a full-sized laptop and a pocket cellphone.

    The device is hyped as a do-everything, go-everywhere touchscreen media gadget that bridges the gap between smartphones, laptops and electronic readers. Magazine, book and newspaper publishers are reportedly talking with Apple about providing material.

    "There's a huge potential long-term story there for Apple," said Atlantic Equities analyst James Cordwell. "Whether they get it right the first time, we'll have to wait and see, but they have a pretty good track record."

    IF THE PRICE IS RIGHT

    Wall Street will pay particular attention to the tablet's price tag. If it is closer to $1,000 than $600, analysts say it will be tougher to convince consumers to buy.

    Apple could offer it under carrier-subsidized plans -- Verizon Wireless is frequently mentioned -- which might help take the bite out of the purchase price.

    Analysts believe Apple will sell 2 million to 5 million tablets in the first year.

    The device could add $1 per share to Apple's non-GAAP earnings in the year, and generate $2.8 billion to $3.5 billion of revenue, with a $700 average selling price, said Cross research analyst Shannon Cross.

    Its Monday earnings run-down will serve as a warm-up for the tablet launch. Strong iPhone sales and continued momentum from its Mac computers should fuel the results.

    Given Apple's recent tradition of shredding Wall Street's estimates, investors will expect nothing less than a strong beat when it reports fiscal first-quarter results. The company is trading at around 27 times forward earnings.

    Apple has bested Wall Street EPS targets by at least 15 percent in the past four quarters, and analyst sentiment on the company is trending upward, according to data compiled by Thomson Reuters StarMine.

    According to StarMine's SmartEstimate, which places more weight on recent forecasts by top-rated analysts, Apple should post EPS of $2.11 a share on revenue of $12.16 billion

    "It really boils down to one point, is their beat big enough?" said Jessup & Lamont analyst Kevin Dede. "If you're long, just ride this one out, but if you're a hedge fund, maybe you want to think twice."

    Apple's shares have risen around 9 percent since mid-December when hype about the tablet quickened, and are trading a few dollars shy of an all-time high. It is now the fourth largest stock on the S&P500 index, outranking the likes of IBM and JPMorgan Chase.

    Some investors will be reluctant to sell shares ahead of the tablet unveiling two days later, Dede said.

    Apple is expected to report earnings of $2.06 a share on revenue of $12.05 billion, according to Thomson Reuters I/B/E/S, with a gross margin of 35.7 percent.

    Marshall, whose estimates are well above consensus, expects Apple to deliver a strong upside surprise.

    "The beat is going to be significant enough that we'll have a material earnings revisions for calendar year 2010," Marshall said.

    The iPhone should provide a boost for Apple in the holiday quarter, particularly internationally, he said. Marshal predicted that iPhone units sold will surpass the 9 million average estimate.

    Analysts target Mac shipments of around 3 million for the quarter. Mac shipments in the United States jumped 31 percent in the quarter, according to research group IDC.

    (Reporting by Gabriel Madway. Editing by Edwin Chan and Robert MacMillan)

    Reuters - EA tees off on Tiger Woods console game in June

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    EA tees off on Tiger Woods console game in June

    Thursday, Jan 21, 2010 4:46PM UTC

    By Ben Klayman

    CHICAGO (Reuters) - Video game publisher Electronic Arts Inc said on Thursday it will introduce the next version of its Tiger Woods console video game in June despite the star golfer's public relations nightmare and decline in popularity following his adultery scandal.

    Tiger Woods PGA Tour 11 introduction will follow an online version launched on Thursday. The console game will be available on the Wii, Xbox 360, PlayStation3 and iPhone platforms, the company said.

    The golf game is one of EA Sports' first online efforts. It signed a sponsor deal with Woods in 1997 and introduced 12 versions of the console game bearing his name. The latest console game had been expected for the summer and is one of the company's best-selling sports products.

    "We didn't form a relationship with him so that he could act as an arm's length endorser," EA Sports President Peter Moore said earlier this month. "Regardless of what's happening in his personal life ... Tiger Woods is still one of the greatest athletes in history."

    Signal Hill Capital analyst Todd Greenwald estimated the EA sells about 2 million units on an annual basis, generating about $80 million in net revenue. EA Sports accounts for about 30 percent of the company's overall revenue.

    However, Greenwald, who has a "hold" rating on EA's stock, said the company has bigger worries than Woods.

    "They're struggling on a number of levels," he said. "They're going through a restructuring, Their cost structure is way too high. They've lowered guidance four or five quarters in a row. And on top of that they don't have the hit titles, at least right now."

    Last week, EA slashed its fiscal 2010 forecast on weak holiday sales in Europe and a shift to its lower-margin distribution business. The publisher of "Madden NFL" and "Need for Speed" had a tough 2009 and cut jobs amid an industry-wide sales slump.

    Several companies that had sponsorship deals with Woods, including AT&T Inc and Accenture PLC, have distanced themselves from the world's No. 1 golfer since he became engulfed in allegations of multiple extramarital affairs after a minor car accident outside his Florida home November 27.

    Woods, believed to be the world's wealthiest athlete, estimated to earn about $100 million a year in endorsement deals before his troubles, confessed on December 11 to "infidelity." He announced he would take an indefinite break from golf to save his marriage to Swedish wife Elin Nordegren.

    Also on Thursday, athletic apparel and footwear maker Nike Inc, which has said it was standing by Woods, acknowledged the golf star's absence would hurt its golf business, which in the past was centered on Woods.

    "Certainly, we don't take the most successful player of this era and subtract it and don't expect a short term impact," Nike Brand President Charlie Denson said in an interview.

    However, Denson, speaking in South Africa ahead of the Soccer World Cup in June, said the company's golf business was not built around Woods alone.

    After the initial free preview, EA said its online Tiger game will be offered through a subscription in early 2010. Since May, the company's EA Sports unit has invited players to use a test version of the game.

    (Reporting by Ben Klayman, additional reporting by Marius Bosch and Serena Chaudhry in Johannesburg; Editing by Derek Caney)

    Tuesday, January 19, 2010

    Reuters - New York Times may charge for online content: report

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    New York Times may charge for online content: report

    Tuesday, Jan 19, 2010 1:18PM UTC

    (Reuters) - The New York Times Co Chairman Arthur Sulzberger is close to announcing that the paper will begin charging for access to its website, New York Magazine reported on its Web site citing people familiar with internal deliberations.

    A final decision could come within days and a plan could be announced in a matter of weeks, Nymag.com reported.

    "It will likely be months before the Times actually begins to charge for content, perhaps sometime this spring," the report said.

    Apple Inc's tablet computer is rumored to launch on January 27, and sources speculate that Sulzberger will strike a content partnership for the new device, which could dovetail with the paid strategy, the magazine reported over the weekend.

    "We'll announce a decision when we believe that we have crafted the best possible business approach. No details till then," the report quoted a Times spokeswoman as saying.

    (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)

    Reuters - Users spurn traditional calls for Skype

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    Users spurn traditional calls for Skype

    Tuesday, Jan 19, 2010 5:59PM UTC

    FRANKFURT (Reuters) - Users wanting to call home form abroad are increasingly turning to Skype's Internet telephony service to the detriment of international carriers, new data showed.

    "Skype is now the largest provider of cross border communications in the world, by far," said Stephan Beckert, analyst at research firm TeleGeography on Tuesday.

    Skype's technology allows consumers to make practically free long-distance calls over the Internet on fixed lines. It is mostly used on desktops but Skype has made the move into mobile too and it now comes pre-installed on some cellphones.

    According to the firm's data, over the past 25 years, international call volume from telephones have grown at a compounded annual rate of 15 percent.

    In the past two years this growth has however slowed to only 8 percent, rising from 376 billion minutes in 2008 to an estimated 406 billion minutes last year.

    By comparison, Skype's on-net international traffic between two Skype users grew 51 percent in 2008, and is projected to grow 63 percent in 2009, to 54 billion minutes.

    "The volume of traffic routed via Skype is tremendous," said Beckert.

    In general, TeleGeography said, "demand for international voice has been remarkably robust, but it's clearly not recession-proof."

    Traffic to Mexico, the world's largest calling destination, declined 4 percent in 2008 for example, and aggregate traffic to Central America declined 5 percent, data showed.

    Established in 2003 and based in Luxembourg, privately owned Skype has more than 520 million registered customers who use the free Web service for voice, video or text communication.

    But despite its size, its revenue is relatively modest -- at about $551 million in 2008 -- as the company has had a difficult time getting users to pay for its largely free services.

    Skype aims to nearly double its annual revenue to $1 billion in two years.

    (Reporting by Nicola Leske)

    Friday, January 15, 2010

    Reuters - Attack on Google exploited Microsoft browser flaw

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    Attack on Google exploited Microsoft browser flaw

    Friday, Jan 15, 2010 12:59AM UTC

    By Jim Finkle

    BOSTON (Reuters) - Recent sophisticated cyber attacks on Google Inc and other businesses exploited a previously unknown flaw in Microsoft Corp's Internet Explorer browser.

    The weakness in the world's most widely used browser was identified by security company McAfee Inc, and later confirmed by Microsoft.

    Google said on Tuesday that in mid-December, it detected an attack on its corporate infrastructure originating from China that resulted in the theft of its intellectual property. It eventually found that more than 20 other companies had been infiltrated.

    McAfee said on Thursday that those who engineered the attacks tricked employees of the companies into clicking on a link to a website that secretly downloaded sophisticated malicious software onto their PCs through a campaign that the hackers apparently dubbed "Operation Aurora."

    "We have never seen attacks of this sophistication in the commercial space. We have previously only seen them in the government space," said Dmitri Alperovitch, a vice president of research with McAfee.

    Microsoft later confirmed the flaw, and sent out an advisory to users to help mitigate the problem. It is still working on a patch that would solve it.

    "The company has determined that Internet Explorer was one of the vectors used in targeted and sophisticated attacks against Google and other corporate networks," Microsoft said.

    The world's largest software company said using Internet Explorer in "protected mode" with security settings at "high" would limit the impact of the vulnerability.

    "We need to take all cyber attacks, not just this one, seriously," said Microsoft Chief Executive Steve Ballmer in an interview on CNBC. "We have a whole team of people that responds in very real time to any report that it may have something to do with our software, which we don't know yet."

    The programs allowed the hackers to take control of the PCs without the knowledge of their users, according to McAfee, which has been researching the matter on behalf of several companies involved in the attacks since late last week.

    McAfee's Alperovitch declined to say which companies had hired McAfee, saying they had signed confidentiality agreements.

    So far the only other victim to come forward is design software maker Adobe Systems Inc, which has said that it is still investigating the matter.

    Some researchers have speculated that the attackers may have exploited flaws in Adobe's Acrobat software and its widely used Reader program for opening PDF documents.

    McAfee's researchers said that they found no evidence that was the case.

    Still, they said that the hackers may have used other types of malicious software to break into Google and the other companies.

    Internet Explorer is vulnerable on all recent versions of the Windows operating system, including Windows 7, according to McAfee. Microsoft said attacks had been limited to IE6, an older version of the application.

    (Additional reporting by Bill Rigby; Editing by Carol Bishopric and Steve Orlofsky)

    Thursday, January 14, 2010

    Reuters - Bodies pile up as Haiti quake toll rises

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    Bodies pile up as Haiti quake toll rises

    Thursday, Jan 14, 2010 6:15PM UTC

    By Tom Brown and Andrew Cawthorne

    PORT-AU-PRINCE (Reuters) - Troops and planeloads of food and medicine trickled in to Haiti on Thursday to aid a traumatized nation still rattled by aftershocks from the catastrophic earthquake that flattened homes and government buildings and buried countless people.

    The Haitian Red Cross said it believed 45,000 to 50,000 people had died and 3 million more were hurt or left homeless by the major 7.0 magnitude quake that hit Haiti's capital on Tuesday. The quake flattened entire hillsides and many people were believed to be still trapped alive in the rubble

    Heavy aircraft had begun to ferry in aid but the influx had yet to reach shell-shocked Haitians who silently wandered the broken streets of Port-au-Prince, searching desperately for water, food and medical help.

    "Money is worth nothing right now, water is the currency," one foreign aid-worker told Reuters.

    Looters swarmed a broken supermarket in the Delmas area of Port-au-Prince, peacefully carrying out electronics and bags of rice. Others siphoned gasoline from a wrecked tanker.

    "All the policemen are busy rescuing and burying their own families," said tile factory owner Manuel Deheusch. "They don't have the time to patrol the streets."

    The United States was sending 3,500 soldiers and 300 medical personnel to help with disaster relief and security in the devastated Caribbean capital, with the first of those scheduled to arrive on Thursday. The Pentagon was also sending an aircraft carrier and three amphibious ships, including one that can carry up to 2,000 Marines.

    "To the people of Haiti, we say clearly and with conviction, you will not be forgotten. In this, your hour of greatest need, America stands with you. The world stands with you," President Barack Obama said.

    The United States pledged long-term U.S. help for the crippled Haitian government. Parliament, the national palace, and many government buildings collapsed and it was unclear how many lawmakers and officials survived. The main prison also fell, allowing dangerous criminals to escape.

    "The authorities that existed before the earthquake are not able to fully function. We're going to try to support them as they re-establish authority," U.S. Secretary of State Hillary Clinton told CNN.

    SURVIVORS DUG OUT

    There were still no signs of organized rescue operations to free those trapped in debris, and doctors in Haiti, the poorest country in the Western Hemisphere, were ill-equipped to treat the injured.

    Survivors feared returning to their precarious homes and slept overnight in open areas where groups of women sang religious songs in the dark and prayed for the dead.

    "They want God to help them. We all do," said Hotel Villa Creole employee Dermene Duma, who lost four relatives.

    Foreigners slept around the hotel's pool while scores of injured and dying people lay outside. Sobs and wailing were heard throughout the night but aftershocks interrupted the mourning, sending panicked people running away from the walls.

    The quake's epicenter was only 10 miles from Port-au-Prince, a sprawling and densely packed city of 4 million people in a nation dogged by poverty, catastrophic natural disasters and political instability.

    Bodies lay all around the hilly city. Corpses were delivered by the pickup truck load to the General Hospital in Port-au-Prince, where hospital director Guy LaRoche estimated the bodies piled outside the morgue numbered 1,500.

    BODY BAGS

    The Haitian Red Cross had run out of body bags and the International Committee of the Red Cross said 3,000 were on the way. Brazil, whose troops make up part of the UN peacekeeping force, proposed an emergency plan to set up a new cemetery and the United States was sending mortuary teams.

    Haitians clawed at chunks of concrete with bare hands and sledgehammers, trying to free those buried alive.

    A 35-year-old Estonian, Tarmo Joveer, was freed from the rubble of the United Nations' five-story headquarters early Thursday, and told journalists he was fine.

    The UN said at least 22 members of its 9,000-strong peacekeeping mission had been killed and scores were still missing. Brazil said 14 of its soldiers were among the dead.

    Nations around the world pitched in to help. French Foreign Minister Bernard Kouchner said three French state aircraft carrying 40 tons of equipment, doctors and security staff had already landed in Haiti and two more were on the way.

    The United States, China, and European states were sending reconnaissance and rescue teams, some with search dogs and heavy equipment, while other governments and aid groups sent tents, water purification units, food and telecoms teams.

    Aid distribution was hampered because roads were still blocked by rubble and normal communications were cut off.

    U.N. peacekeepers around the city seemed overwhelmed by the enormity of the recovery task ahead.

    "We just don't know what to do," a Chilean peacekeeper said. "You can see how terrible the damage is. We have not been able to get into all the areas."

    Many hospitals were too badly damaged to use, and doctors struggled to treat crushed limbs, head wounds and broken bones at makeshift facilities where medical supplies were scarce.

    Aid group Doctors Without Borders was sending an inflatable hospital with two operating theaters and the Brazilian military was sending two field hospitals. The U.S. Navy hospital ship Comfort was on the way back to Haiti, where it delivered medical care after a spate of storms caused massive flooding and mudslides in 2008.

    (Additional reporting by Raymond Colitt, Carlos Barria, David Morgan, Joseph Guyler Delva, Stephanie Nebehay, Patrick Worsnip and Louis Charbonneau; Writing by Jane Sutton, Pascal Fletcher and Anthony Boadle; Editing by Vicki Allen and David Storey)

    About Me

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    If you know me then you know my name. I am The Black Rider and the world is my Flame. The rider writes, observes, creates, produces, and learns the world around him. Ride on. Ride on!

    The Remnants

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