Algeria hostage crisis ends in bloodshed

IN AMENAS, Algeria: Algerian troops stormed a remote gas plant on Saturday to end a hostage crisis that killed 23 foreigners and Algerians, seven of them executed by their Islamist captors in a final military assault.

Twenty-one hostages died during the siege that began when the Al-Qaeda-linked gunmen attacked the In Amenas facility deep in the Sahara desert at dawn on Wednesday, the interior ministry said.

Thirty-two kidnappers were also killed, and special forces were able to free "685 Algerian workers and 107 foreigners," it said.

Among the dead were an unknown number of foreigners -- including from Britain, France, Romania and the United States -- and many were still unaccounted for, including Japanese.

The kidnappers led by Algerian Mokhtar Belmokhtar, a former Al-Qaeda commander in North Africa, killed two people on a bus, a Briton and an Algerian, before taking hundreds of workers hostage when they overran the gas plant.

Belmokhtar's "Signatories in Blood" group had been demanding an end to French military intervention against jihadists in neighbouring Mali.

In Saturday's assault, "the Algerian army took out 11 terrorists, and the terrorist group killed seven foreign hostages," state television said, without giving a breakdown of their nationalities.

A security official who spoke to AFP as army helicopters overflew the plant gave the same death tolls, adding it was believed the foreigners were executed "in retaliation".

As experts began to clear the complex of bombs planted by the Islamists, residents of In Amenas breathed a collective sigh of relief.

"We went from a peaceful situation to a terror situation," said one resident who gave his name as Fouad.

"The plant could have exploded and taken out the town," said another.

Brahim Zaghdaoui said he was not surprised by the Algerian army's ruthless final assault.

"It was predictable that it would end like that," he said standing outside the town's hospital, where coffins were seen arriving in the morning.

Most of the hostages had been freed on Thursday when Algerian forces launched a rescue operation, which was widely condemned as hasty.

But French President Francois Hollande and US Defence Secretary Leon Panetta refused to blame Algeria.

The response by Algiers was "the most appropriate" given it was dealing with "coldly determined terrorists ready to kill their hostages," said Hollande.

Panetta added: "They are in the region, they understand the threat from terrorism... I think it's important that we continue to work with (Algiers) to develop a regional approach."

British Defence Secretary Philip Hammond said the crisis had been "brought to an end by a further assault by Algerian forces, which has resulted in further loss of life".

The deaths were "appalling and unacceptable and we must be clear that it is the terrorists who bear sole responsibility for it," he said.

The hostage-taking was the largest since the 2008 Mumbai attack, and the biggest by jihadists since hundreds were killed in a Moscow theatre in 2002 and at a school in the Russian town of Beslan in 2004, according to monitoring group IntelCenter.

Foreign Secretary William Hague said a total of six British nationals and one resident of the United Kingdom were either dead or unaccounted for.

Prime Minister Shinzo Abe of Japan said he had received "severe information" about 10 of his country's nationals who were still missing.

The gunmen said on Friday that they were still holding "seven foreign hostages" -- three Belgians, two Americans, one Japanese and a Briton.

However, Brussels said it had no indication any of its nationals were being held.

Algeria was strongly criticised for launching Thursday's assault, which the kidnappers said had left dead 34 of the hostages and 15 of their own fighters.

Belmokhtar also wanted to exchange American hostages for the blind Egyptian sheikh Omar Abdul Rahman and Pakistani Aafia Siddiqui, jailed in the United States on charges of terrorist links.

At least one American had already been confirmed dead before Saturday's assault.

But the State Department said "the United States does not negotiate with terrorists".

France, which said on Saturday that 2,000 of the 2,500 troops it had pledged were now on the ground in Mali, said that no more of its citizens were being held.

President Hollande said French troops would stay in Mali as long as is needed "to defeat terrorism" in the West African country and its neighbours.

Algerian news agency APS quoted a government official as saying the kidnappers, who claimed to have come from Niger, were armed with machineguns, assault rifles, rocket launchers and missiles.

This was confirmed by an Algerian driver, Iba El Haza, who said the hostage-takers spoke in different Arabic dialects and perhaps also in English.

"From their accents I understood one was Egyptian, one Tunisian, another Algerian and one was speaking English or (another) foreign language," Haza told AFP after escaping on Thursday.

"The terrorists said: 'You have nothing to do with this, you are Algerians and Muslims. We won't keep you, we only want the foreigners.'"

- AFP/de

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JBT scam: Convicted retired staff & kin in a shock

NEW DELHI: Four days after the CBI court gave its verdict in the junior basic trained (JBT) teachers' recruitment scam, 50 retired Haryana primary education department employees, who were convicted by the court, and their families are in a state of shock.Having lost the legal battle following the CBI court's conviction, the former government employees of the education department on Saturday pleaded before the court for minimum sentence on medical grounds. The special CBI court in Rohini, Delhi, which is now hearing the arguments on quantum of punishment, which will be announced on January 22. Former Haryana chief minister Om Prakash Chautala and his son Ajay were convicted by the court in the case on Wednesday.

Family members of the convicted retired staff maintained that the officials would have been subjected to more severe punishments had they refused to carry out the orders issued by Chautala and his associates. The convicted retired officials included former district primary education officers (DPEOs), block education officers (BEO) and senior officials of education department. They were members of the 17 district level selection committees constituted by the education department for recruitment of JBT teachers in 1999-2000.

Majority of those convicted in the case are in their mid 60s and early 70s. Their relatives now insist that compulsion of carrying out the orders issued by superiors became the biggest crime for them. "This is the perfect example as to how a government service can turn out to be a sin. My mother-in-law had served the department for 34 years. Her fault was that she signed the list like others,'' said Krishan Kumar, a resident of Jind whose mother-in-law, Kailash Kaushik, a retired BEO of Jind, has been convicted in the case.

Accompanied by other family members, Krishan had come to see Kailash in the court on Saturday. "Now we expect that the court will give the minimum sentence as members of the committees have been punished for virtually no fault of theirs. Unfortunately, all this has happened despite the fact that none of the members of committees was indicted for monetary or any other gains. Those who gained (the recruited teachers) are still in job,'' said K K Atri, a Panchkula resident and Kailash's brother-in-law.

"What could be worse than this, a person who earned reputation as a teacher is forced to live with hardcore criminals in jail for no fault of theirs,'' another relative of an accused in the case said. Relatives of Ajit Singh Sangwan, a retired DPEO, also echoed the same feeling.

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

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Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

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Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Ex-Teammate: Armstrong Showed 'Genuine Emotion'

While critics railed against Lance Armstrong for coming off as detached in the two-part interview with Oprah Winfrey that aired Thursday and Friday nights, former teammate and friend, Tyler Hamilton, told "Good Morning America" today that he felt Armstrong was displaying "genuine emotion."

"I've never seen Lance shed a tear until last night. Before I even heard one word from him Thursday night, I could tell he was a broken man," Hamilton said.

Armstrong's contrition turned tearful Friday when he revealed to Oprah Winfrey how difficult it was to betray his family -- particularly his 13 year old son -- who stood up for the fallen cycling star as rumors swirled that he was taking banned drugs.

Armstrong, 41, choked up when he recounted what he told his son, Luke, in the wake of the scandal.

"When this all really started, I saw my son defending me and saying that's not true…" Armstrong told Winfrey, "I told Luke. I said, 'Don't defend me anymore.'"

Armstrong's interview with Winfrey drew millions of viewers.

It was the first time Armstrong admitted using performance-enhancing drugs and oxygen-boosting blood transfusions to help him win the Tour de France.

"I view this situation as one big lie that I repeated a lot of times," Armstrong said. "I know the truth. The truth isn't what was out there. The truth isn't what I said.

George Burns/Courtesy of Harpo Studios, Inc./AP Photo

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"I'm a flawed character, as I well know," Armstrong added. "All the fault and all the blame here falls on me."

However, Hamilton said any hope for Armstrong's redemption would come if he came clean about others who were part of the doping scandal.

"The question now is where he goes from this, his actions moving forward. He needs to name names," Hamilton said.

READ MORE: Armstrong Admits to Doping

Armstrong was stripped of his seven Tour de France titles in October 2012, after a report by the U.S. Anti-Doping Agency found that he and 11 of his teammates orchestrated "the most sophisticated, professionalized and successful doping program that sport has ever seen."

Despite the admissions of his teammates that they had doped with Armstrong and seen him complete blood transfusions for races, Armstrong condemned the report and denied that he had ever cheated.

As sponsors including Nike began to pull support of Armstrong following the report, Armstrong's carefully-built image began to crumble. He stepped down from Livestrong, the charity he started to help cancer patients after he survived testicular cancer.

"It was a mythic perfect story and it wasn't true," Armstrong said of his fairytale story of overcoming testicular cancer to become the most celebrated cyclist in history.

In the interview, Armstrong explained his competition "cocktail" of EPO, blood transfusions and testosterone that he used throughout his career. He also said he had previously used cortisone.

Armstrong refused to give Winfrey the details of when, where and with whom he doped during seven winning Tours de France between 1999 and 2005, which was the last year he said he doped. Armstrong specifically denied using banned substances when he placed third in 2009 and entered the tour again in 2010.

Investigators familiar with Armstrong's case, however, told ABC News that Armstrong did not come completely clean to Winfrey, and say they believe he doped in 2009.

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Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army carried out a dramatic final assault to end a siege by Islamist militants at a desert gas plant on Saturday in which 23 hostages were killed, many of them believed to be foreigners, the interior ministry said.

Thirty-two al Qaeda-linked militants were killed in the army operation to recapture the complex, according to a provisional toll from the ministry. A statement said 107 foreign hostages and 685 Algerian hostages had survived.

Militants seized the remote compound in the Sahara desert before dawn on Wednesday, taking a large number of hostages, including foreigner workers, and booby-trapped the compound with explosives.

The crisis marked a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

The gas plant near the town of In Amenas was home to expatriate workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others. One American and one British citizen have been confirmed dead.

British Prime Minister David Cameron said on Saturday he feared for the lives of five British citizens still unaccounted for. Statoil said five of its workers, all Norwegian nationals, were still missing. Japanese and American workers are also unaccounted for.

"We feel a deep and growing unease ... we fear that over the next few days we will receive bad news," Statoil Chief Executive Helge Lund said on Saturday. "People we have spoken to describe unbelievable, horrible experiences."

The Islamists' attack has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to centre stage.

British Foreign Secretary William Hague confirmed that Algerian military operations at the plant had been concluded.

"We understand that the site is not yet fully safe because of hazards such as booby traps and so they are still working on that," Hague said.

Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria's response to the raid will have been conditioned by the legacy of a civil war against insurgents in the 1990s which claimed 200,000 lives.

HOSTAGES FREED

As the army closed in, 16 foreign hostages were freed, a source close to the crisis said. They included two Americans and one Portuguese.

BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.

The captors said their attack on the Algerian gas plant was a response to the French offensive in Mali. However, officials say the elaborate raid would have been planned well before France launched its strikes.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified gas compound when it was seized on Wednesday.

Hundreds escaped on Thursday when the army launched a rescue operation, but many hostages were killed.

Before the interior ministry released its provisional death toll, an Algerian security source said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.

U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.

"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."

BURNED BODIES

Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.

The field commander of the group that attacked the plant is a fighter from Niger called Abdul Rahman al-Nigeri, according to Mauritanian news agencies. His boss, Mokhtar Belmokhtar, a veteran of fighting in Afghanistan and Algeria's civil war of the 1990s, appears not to have joined the raid.

Britain, Japan and other countries have expressed irritation that the army assault was ordered without consultation and officials grumbled at the lack of information.

But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.

"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

France says the hostage incident proves its decision to fight Islamists in neighboring Mali was necessary. Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Rosalind Russell)

(This story was refiled to correct Algerian hostages)

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US stocks mostly higher; Intel pulls Nasdaq down

NEW YORK: US stocks ended mostly higher on Friday helped by news that Republicans might give way to a short-term rise of the debt ceiling to avoid a new crisis, but poor earnings from Intel pulled the Nasdaq lower.

The Dow Jones Industrial Average was up 53.68 points (0.39 percent) to 13,649.70.

The broad-based S&P 500 added 5.04 points (0.34 percent) at 1,485.98.

But the tech-heavy Nasdaq Composite ended down 1.29 points (0.04 percent) at 3,134.71, dragged lower by chipmaker Intel, which sank 6.3 percent after a poor fourth quarter, with a 31 percent drop in profit and a lowered forecast for this year.

- AFP/de

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Nirbhay to be test-fired in February

HYDERABAD: Nirbhay, India's first subsonic cruise missile, will be test-fired by the end of February, said V K Saraswat, director general of Defence Research and Development Organisation (DRDO) and scientific advisor to defence minister A K Antony. Saraswat was speaking to the media during a seminar on 'Nurturing, Managing and Institutionalising Innovation' organised by the Defence Research and Develoment Laboratory (DRDL) here on Friday.

While 2012 was an eventful year for the defence organisation with almost a dozen successful launches of various kinds of missiles, this year also promises to be big with many more plans underway. "Nirbhay will be a medium-range cruise missile with advantages like the ability of not being detected and high accuracy. It is also a cheaper option," Saraswat said.

Asked if there were any hitches in test-firing the missile as it was expected to have taken place sometime back, Saraswat said some processes had been developed and there were no hitches.

This year, a major plan of the DRDO is 'canisterisation' of Agni IV and Agni V, which will enable firing of the missile from any platform. Another plan was to integrate Astra-III with Sukhoi. He said four Light Combat Aircraft (LCA) would be produced this year and in 2014, the necessary operational clearances would be sought.

The DRDO has also carried out 50 of the 56 modifications sought for the Main Battle Tank (MBT) Arjun Mark-II variant by the user. The rest of the modifications will be carried out in the next few months. Saraswat said the Long Range Cruise Missile (LRCM) will have all futuristic features.

Saraswat informed that they had got permissions for the missile testing range proposed at Machilipatnam. "It is a barren piece of land and we will turn it into a green area. There will be no environmental issues," he said. Talking about the civilian applications of defence technology, he said that the bio-digesters (toilets) were much in demand and there was a proposal with the tourism ministry on using them in buses.

Another important application would be the kit for detection of dengue. The kits developed by DRDO will take just two hours to confirm a dengue case while the kits available elsewhere take 24 hours. Saraswat said that the technology has already been transferred to manufacturers of the anti-mosquito 'attracticide', which is available in the market.

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Manti Te'o Hoax Incredibly Detailed and Complex

Fresh details have emerged about how complex and layered was the hoax involving Notre Dame star linebacker Manti Te'o and his fake girlfriend, "Lennay Kekua."

According to ABC News interviews and published reports, Te'o received phone calls, text messages and letters before every football game from his "girlfriend." He was in contact with her family, including a twin brother, a second brother, sister and parents. He called often to check in with them, just as he did with his own family. And "Kekua" kept in contact with Te'o's friends and family, and teammates spoke to her on the phone.

"There are a remarkable number of characters involved. We don't know how many people they represent," Notre Dame Athletic Director Jack Swarbrick said at a news conference this week. "There are male and female characters, brothers, cousins, mother, and we don't know if it's two people playing multiple characters or multiple people."

"It goes to the sophistication of this, that there are all these sort of independent pieces that reinforce elements of the story all the way through," he said.

Click here for a who's who in the Manti Te'o case

One of Te'o's teammates who asked not to be identified told ABC News that it was normal for Te'o to pass his phone around to teammates when he was on the line with "Lennay" so they could say hello to her.

"I talked to her," this teammate said. "I wasn't suspicious."

When Te'o got the call telling him that Lennay had died last fall, he was in the locker room, the teammate said.

"He got real emotional, crying," the teammate said. "He's an emotional guy."

The teammate said he thinks Te'o genuinely got hoaxed. The fact that Te'o talked about meeting her and touching her hand - when really he only "met" her on the internet - makes this teammate think that he was not completely telling the truth about his relationship.

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"I think he was just embarrassed about it, the whole internet thing," the teammate said. The player said he hasn't talked to Te'o since this story broke.

With so many questions swirling around the revelation that Te'o's fake girlfriend, a source in the Notre Dame athletic department said the school would like Te'o to speak out publicly, but noted that they are not currently in touch with him.

"At some point the ball ends up in his court," the source said. "We're not involved right now."

A newly released transcript of "Sports Illustrated" writer Pete Thamel's Sept. 23 interview with Te'o gives a hint at the staggering depth of the deception.

Te'o told Thamel that Lennay Kekua's real name was Melelengei, but since no one could pronounce it properly it was shortened to Lennay. But her family nicknamed her Lala, he said.

Te'o's knowledge about the details of his girlfriend's life was often murky, including her majors in school, occupation and extent of her injuries after an alleged April 28 car accident with a drunk driver.

What he was absolutely clear about was how much time he spent in contact with her, especially while she was in the hospital recovering from the car accident, which led to the discovery of her leukemia.

"I talked to my girlfriend every single day," Te'o told Themel. "I slept on the phone with her every single day. When she was going through chemo, she would have all these pains and the doctors were saying they were trying to give her medicine to make her sleep. She still couldn't sleep. She would say, 'Just call my boyfriend and have him on the phone with me, and I can sleep.' I slept on the phone with her every single night."

He would spend eight hours a night with someone, somewhere, breathing on the other end, he told Thamel.

Te'o recounted how his girlfriend who was "on a machine" after being in a coma.

"We lost her, actually, twice. She flatlined twice. They revived her twice," he said. "It was just a trippy situation."

For a while Kekua was unable to talk and he described the nurse-deemed "miracle" of how Kekua's breathing would pick up when she heard his voice on the phone.

"There were lengthy, long telephone conversations. There was sleeping with the phone on connected to each other," Swarbrick said. "The issue of who it is, who's playing what role, what's real and what's not here is a more complex question than I can get into."

Perhaps one of the most touching displays of love from Kekua to Te'o, he told the writer, was the one-page letter she would write him on her iPad before each game. One of her siblings, often her twin brother Noa, would then read him the letter over the phone before sending it to him.

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Foreigners still caught in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were still either being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants.

More than a day after the Algerian army launched an assault to seize the remote desert compound, much was still unclear about the number and fate of the victims, leaving countries with citizens in harm's way struggling to find hard information.

Reports on the number of hostages killed ranged from 12 to 30, with anywhere from dozens to scores of foreigners still unaccounted for.

Norway's Prime Minister Jens Stoltenberg, eight of whose countrymen were missing, said fighters still controlled the gas treatment plant itself, while Algerian forces now held the nearby residential compound that housed hundreds of workers.

Leaders of Britain, Japan and other countries expressed frustration that the assault had been ordered without consultation. Many countries were also withholding information about their citizens to avoid helping the captors.

Night fell quietly on the village of In Amenas, the nearest settlement, some 50 km (30 miles) from the vast and remote desert plant. A military helicopter could be seen in the sky.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

Norway's Stoltenberg said some of those killed in vehicles blasted by the army could not be identified. "We must be prepared for bad news this weekend but we still have hope."

Northern Irish engineer Stephen McFaul, who survived, said he saw four trucks full of hostages blown up by Algerian troops.

The attack has plunged international capitals into crisis mode and is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.

A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. However, other estimates of the number of unaccounted-for foreigners were higher. Earlier the same source said 60 were still missing. Some may be held hostage; others may still be hiding in the sprawling compound.

Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.

Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30

France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.

The attackers had initially claimed to be holding 41 Western hostages. Some Westerners were able to evade capture by hiding.

They lived among hundreds of Algerian employees on the compound. The state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.

"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," it said, quoting a security source.

MULTINATIONAL INSURGENCY

Algerian commanders said they moved in on Thursday about 30 hours after the siege began, because the gunmen had demanded to be allowed to take their captives abroad.

A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed, relying on Algerian employees to smuggle him food with a password.

"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

The captors said their attack was a response to a French military offensive in neighboring Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the single week since France first launched its strikes.

Paris says the incident proves that its decision to fight Islamists in neighboring Mali was necessary.

Security in the half-dozen countries around the Sahara desert has long been a pre-occupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of Al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.

The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.

The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site. The attackers benefitted from bases and staging grounds across the nearby border in Libya's desert, Algerian officials said.

U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere.... Those who would wantonly attack our country and our people will have no place to hide."

WARNING OF MORE ATTACKS

The kidnappers threatened more attacks and warned Algerians to stay away from foreign companies' installations, according to Mauritania's news agency ANI, which maintained contact with the group during the siege.

Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, said BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm.

The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a one-eyed veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present.

Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who traveled from Libya, and the lesser known "Movement of the Islamic Youth in the South".

Britain's Cameron, who warned people to prepare for bad news and who canceled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.

U.S. officials had no clear information on the fate of Americans. Washington, like its European allies, has endorsed France's military intervention in Mali.

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche)

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Amazon says music catalogue open to Apple users

SAN FRANCISCO: Amazon said Thursday its 22-million song music catalogue was now "optimised" for users of Apple devices, making it easier for iPhone owners to circumvent the iTunes store.

The move is part of a new initiative by the Internet retail giant challenging Apple's dominance of the digital music market.

"For the first time ever, iPhone and iPod touch users can discover and buy digital music from Amazon's 22-million song catalogue using the Safari browser," Amazon said in a statement.

"Music purchases are automatically saved to customers' Cloud Player libraries and can be downloaded or played instantly from any iPhone, iPod touch, iPad, Kindle Fire, Android phone or tablet, Roku, Sonos home entertainment system, or any Web browser, giving customers the freedom to enjoy more music, from more devices than any other major cloud music service."

The move comes a week after Amazon launched a service that gives compact disc buyers instant copies of music in the Internet "cloud" in a challenge to iTunes.

Amazon AutoRip provides free MP3 versions of music on CDs bought from the online retail titan.

In the newest announcement, Amazon said its MP3 mobile website for iPhone and iPod touches is built on HTML5, which means customers can make purchases directly from the website.

Amazon offers some deals, including US$5 albums, 69-cent songs, and free songs from artists on the rise.

According to research firm NPD, iTunes last year held a 64 per cent share of the digital music market and 29 per cent share of all music sold at retail. Amazon had 16 per cent of the digital market, according to NPD's September survey.

- AFP/jc

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