At least one American dead in Algerian hostage crisis

Updated at 6:41 p.m. ET

An American in the Algerian hostage standoff in the Algerian desert has been killed, CBS News has learned.

Fredrick Buttaccio from Katy, Texas near Houston, was an employee of the oil company BP. It is unknown how he died, but U.S. government sources tell CBS News his body has been recovered and his family has been notified.

Meanwhile, a U.S. military plane has landed in Amenas, Algeria to pick up nine passengers - one American and eight foreign nationals - to be transported to Landstuhl, Germany, a military source told CBS News.

The flight, which contains an air medical evacuation team, was expected to have departed Algeria by Thursday afternoon.

It's not clear exactly how many total casualties have resulted from the fighting, but Algeria's state news agency reported that 12 foreign and Algerian workers had died since the start of the operation, citing an unidentified security source. That information could not be independently confirmed.

As CBS News correspondent Mark Phillips reported, the freed hostages told of how they fled in the confusion as the Algerian army attacked. Many were injured, some badly. One person said: "It happened so fast."

But it hasn't ended quickly, reported Phillips. The Algerians say they've freed nearly a hundred foreigners. And as they were being bused away, many thanked their rescuers. "They kept us all nice and safe and fought off the bad guys," said another person.

Also, more detail of the ordeal has emerged with the freed hostages. Some say they had explosives hung around their necks as they were placed in a convoy of vehicles by their captors. When the cars began to move, the Algerian Army units surrounding the site feared the captives were being taken out of the compound -- and opened fire.

The al Qaeda-linked Masked Battalio, led from afar by Moktar Belmoktar, may still be holding some of the roughly 30 foreigners still unaccounted for.

U.S. Secretary of State Hillary Clinton did not get into specifics on the crisis Friday afternoon, but described it as an "extremely difficult and dangerous situation" and called on the Algerian government to "preserve innocent life" in their efforts to fully resolve the crisis. Clinton spoke after the State Department said that Americans were still being held hostage.

The desert siege erupted Wednesday when the militants attempted to hijack two buses at the plant, were repulsed, and then seized the sprawling refinery, which is 800 miles south of Algiers. They had claimed the attack came in retaliation for France's recent military intervention against Islamist rebels in neighboring Mali, but security experts have said it must have taken weeks of planning to hit the remote site.

Since then, Algeria's government has kept a tight grip on information about the siege.

The militants had seized hundreds of workers from 10 nations at Algeria's remote Ain Amenas natural gas plant. The overwhelming majority were Algerian and were freed almost immediately.

Algerian forces retaliated Thursday by storming the plant in an attempted rescue operation that left leaders around the world expressing strong concerns about the hostages' safety.

Militants claimed 35 hostages died on Thursday when Algerian military helicopters opened fire as the Islamists transported the hostages around the gas plant. While Algerian officials acknowledged some hostage deaths, the number could not be independently confirmed.

On Friday, trapped in the main refinery area, the militants offered to trade two American hostages for two prominent terror figures jailed in the United States. Those the militants sought included Omar Abdel Rahman, the blind sheikh who was convicted of plotting to blow up New York City landmarks and considered the spiritual leader of the 1993 World Trade Center bombing, and Aafia Siddiqui, a Pakistani scientist convicted of shooting at two U.S. soldiers in Afghanistan.

But U.S. Defense Secretary Leon Panetta said there would be "no place to hide" for anyone who looks to attack the United States.

"Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere," Panetta said Friday.

Workers kidnapped by the militants came from around the world -- Americans, Britons, French, Norwegians, Romanians, Malaysians, Japanese, Algerians.

A high-resolution satellite image of the Amenas gas facility taken on Dec 7, 2012.

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GeoEye Satellite Image

World leaders have expressed strong concerns in the past few days about how Algeria was handing the situation and its apparent reluctance to communicate.

Terrorized hostages from Ireland and Norway trickled out of the plant. BP, which jointly operates the plant, said it had begun to evacuate employees from Algeria.

A U.S. military C-130 transport plane flew a number of people including former Ain Amenas hostages from the Algerian capital of Algiers to a U.S. facility in Europe, a U.S. official said. He declined to be specific about the destination, their nationalities or the extent of the wounds that he said some had.

A flood of foreign energy workers were being evacuated from the North African nation amid security concerns.

BP evacuated one U.S. citizen along with other foreign energy workers from Algeria to Mallorca and then London. The oil giant said three flights left Algeria on Thursday, carrying 11 BP employees and several hundred energy workers from other companies.

A fourth plane was taking more people out of the country on Friday, BP said.

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Armstrong's Lowest Point Was Quitting Livestrong

Lance Armstrong, 41, began to cry today as he described finding out his son, 13-year-old Luke, was publicly defending Armstrong from accusations that he doped during his cycling career.

He said that he knew, at that moment, he would have to publicly confess to taking performance-enhancing drugs and having oxygen-boosting blood transfusions when competing in the Tour de France.

"When this all really started, I saw my son defending me, and saying, 'that's not true, what you're saying about my dad that's not true,' and it almost goes to this question of 'why now', Armstrong said, tearing up during the second part of his interview with Oprah Winfrey.

"That's when I knew I had to talk. He never asked me. He never said, 'Dad is this true?' He trusted me," Armstrong said.

The seven-time winner of the Tour de France admitted publicly for the first time Thursday that he doped throughout his career, confirming after months of angry denials the findings of the U.S. Anti-Doping Agency, which stripped him of his titles in October. He said he sat down with his children over the holidays to come clean about his drug use.

"I said listen, there's been a lot of questions about your dad, about my career, and whether I doped or did not dope. I always denied that. I've always been ruthless and defiant about that, which is why you defended me, which makes it even sicker," Armstrong said, recounting the conversation. "I said, 'I want you to know that it's true.'

He also said that his mother was "a wreck" over the scandal.

Earlier, Armstrong said that the lowest point in his fall from grace and the top of the cycling world came when his cancer charity, Livestrong, asked him to consider stepping down.

After the U.S. Anti-Doping Agency released a report in October 2012 alleging Armstrong doped throughout his reign as Tour de France champion, Armstrong said a second installment of an interview with Oprah Winfrey, his major sponsors -- including Nike, Anheuser Busch and Trek -- called one by one to end their endorsement contracts with him.

"Everybody out," he said. "Still not the most humbling moment."

Then came the call from Livestrong, the charity he founded at age 25 when he was diagnosed with testicular cancer.

George Burns/Harpo Studios, Inc.

Lance Armstrong-Winfrey Interview: How Honest Was He? Watch Video

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"The story was getting out of control, which was my worst nightmare," he said. "I had this place in my mind that they would all leave. The one I didn't think would leave was the foundation.

"That was most humbling moment," he said.

Armstrong first stepped down as chairman of the board for the charity before being asked to end his association with the charity entirely. Livestrong is now run independently of Armstrong.

"I don't think it was 'We need you to step down,' but, 'We need you to consider stepping down for yourself,'" he said, recounting the call. "I had to think about that a lot. None of my kids, none of my friends have said, 'You're out,' and the foundation was like my sixth child. To make that decision, to step aside, that was big."

In the first part of the interview, broadcast Thursday, Armstrong admitted for the first time that his decade-long dominance of cycling and seven wins in the Tour de France were owed, in part, to performance-enhancing drugs and oxygen-boosting blood transfusions.

He told Winfrey that he was taking the opportunity to confess to everything he had done wrong, including for years angrily denying claims that he had doped.

READ MORE: Armstrong Admits to Doping

WATCH: Armstrong's Many Denials Caught on Tape

READ MORE: 10 Scandalous Public Confessions

Armstrong said in the interview that he stopped doping following his 2005 Tour de France victory and did not use 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 today that Armstrong did not come completely clean to Winfrey, and that they believed he doped in 2009.

They said that Armstrong's blood values at the 2009 race showed clear blood manipulation consistent with two transfusions. Armstrong's red blood cell count suddenly went up at these points, even though the number of baby red blood cells did not.

Investigators said that was proof that he received a transfusion of mature red blood cells.

READ MORE: Lance Armstrong May Have Lied to Winfrey: Investigators

If Armstrong lied about the 2009 race, it could be to protect himself criminally, investigators said.

Federal authorities looking to prosecute criminal cases will look back at the "last overt act" in which the crime was committed, they explained. If Armstrong doped in 2005 but not 2009, the statute of limitations may have expired on potential criminal activity.

The sources noted that there is no evidence right now that a criminal investigation will be reopened. Armstrong is facing at least three civil suits.

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Foreigners still trapped in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were captive or missing inside a desert gas plant on Saturday, nearly two days after the Algerian army launched an assault to free them that saw many hostages killed.

The standoff between the Algerian army and al Qaeda-linked gunmen - one of the biggest international hostage crises in decades - entered its fourth day, having thrust Saharan militancy to the top of the global agenda.

The number and fate of victims has yet to be confirmed, with the Algerian government keeping officials from Western countries far from the site where their countrymen were in peril.

Reports put the number of hostages killed at between 12 to 30, with possibly dozens of foreigners still unaccounted for - among them Norwegians, Japanese, Britons, Americans and others.

State Department spokeswoman Victoria Nuland confirmed on Friday the death of one American, Frederick Buttaccio, in the hostage situation, but gave no further details.

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.

A U.S. official said on Friday that a U.S. Medevac flight carrying wounded of multiple nationalities had left Algeria.

By nightfall on Friday, the Algerian military was holding the vast residential barracks at the In Amenas gas processing plant, while gunmen were holed up in the industrial plant itself with an undisclosed number of hostages.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to a French military operation in neighboring Mali.

Hundreds escaped on Thursday when the army launched an operation, but many hostages were killed in the assault. Algerian forces destroyed four trucks holding hostages, according to the family of a Northern Irish engineer who escaped from a fifth truck and survived.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information. Many countries also withheld details about their missing citizens to avoid releasing information that might aid the captors.

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.

The base was home to foreign workers from Britain's BP, Norway's Statoil and Japanese engineering firm JGC Corp and others.

Norway says eight Norwegians are still missing. JGC said it was missing 10 staff. Britain and the United States have said they have citizens unaccounted for but have not said how many.

The Algerian security source said 100 foreigners had been freed but 32 were still unaccounted for.

"We must be prepared for bad news this weekend but we still have hope," Norwegian Prime Minister Jens Stoltenberg said.

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.

"(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," Algeria's state news agency said on Friday, 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 before he was rescued by Algerian troops, 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 the 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 its decision to fight Islamists in neighboring Mali was necessary.

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 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 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.

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."

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London, Padraic Halpin and Conor Humphries in Dublin, Andrew Quinn and David Alexander in Washington; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche, Tom Pfeiffer and Jackie Frank)

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Japan PM holds Algerian hostage task force meeting

TOKYO: Japanese Prime Minister Shinzo Abe attended a meeting Saturday of a government task force on the Algeria hostage crisis after cutting short a trip to Southeast Asia, a report said.

After arriving back in Tokyo Abe headed straight to his official residence where the meeting was to be held, Kyodo news agency reported.

"I would like to firmly respond," Abe was quoted as saying. He called for continued efforts to collect accurate information on the situation in Algeria and for close international cooperation during the crisis.

Al-Qaeda-linked gunmen, cited by Mauritania's ANI news agency, said they still held seven foreigners at a remote Algerian gas plant deep in the Sahara desert. An Algerian security official put their number at 10.

The kidnappers said they were still holding three Belgians, two Americans, one Japanese and a Briton, although Belgium said there was no indication any of its nationals were being held.

More workers remain unaccounted for, and the fate of at least 10 Japanese nationals and eight Norwegian hostages is still unknown.

The Islamist captors are demanding a prisoner swap and an end to French military action in Mali.

The meeting in Tokyo took place shortly after a joint news conference in Washington involving US Secretary of State Hillary Clinton and Japanese Foreign Minister Fumio Kishida.

"Japan takes the position that terrorism is definitely intolerable and impermissible," Kishida said.

"The government of Japan has been requesting the government of Algeria to place the utmost priority on ensuring the safety and the lives of the hostages," he added.

International criticism of the haste with which Algeria launched a dramatic military assault to rescue the hostages has been mounting, after an Algerian security official said it had left dead 12 hostages and 18 kidnappers.

Japanese plant builder JGC, which has 78 employees in the country, said it had now accounted for 17 of them -- seven Japanese and 10 others, including two Philippine nationals and a Romanian.

JGC president Koichi Kawana and other senior officials had left for Algeria by early Saturday, Kyodo reported.

- AFP/ck

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Researcher: Apps meant to spot skin cancer are inaccurate

Researchers ran 188 images of skin lesions through four apps and found that three apps incorrectly described at least 30 percent of the melanomas as benign.

(Credit:
Screenshot by Elizabeth Armstrong Moore/CNET)

When a patient asked Laura Ferris, an assistant professor of dermatology at the University of Pittsburgh School of Medicine, her opinion on smartphone apps that purport to distinguish between benign and malignant skin lesions, Ferris realized she'd never used one and decided to run images of melanomas through a few of the apps herself.

"When I saw the first few results come back of them being missed, I really started to get concerned," Ferris says in a school video. So she decided to investigate further, and reports this week in JAMA Dermatology that three out of four smartphone apps her team tested incorrectly described at least 30 percent of melanomas as "unconcerning."

The news comes the same week a Pew Research Center study found that 35 percent of Americans seek out medical diagnoses (not just remedies or information) online.

For the melanoma study, researchers uploaded 188 images of skin lesions to each of the four applications (they decided "not to make a direct statement about a particular app" and are thus not naming the apps they studied). The apps analyzed the images in different ways, including automated algorithms and images reviewed by an anonymous board-certified dermatologist.

It turns out that of the four melanoma apps studied, the most accurate one was not only the most expensive (costing $5 per image) but also was the only one to rely on the dermatologist to review the images. (In this case, just one of the 53 melanomas uploaded was incorrectly identified as benign.)

These results could be particularly problematic for those without the resources to go to an actual dermatologist or afford the most expensive app, especially if they take an "unconcerning" result as confirmation that they need not spend any more money investigating the area in question.

"If [users] see a concerning lesion but the smartphone app incorrectly judges it to be benign, they may not follow up with a physician," says Ferris, whose study was funded in part by the National Institutes of Health. "Technologies that decrease the mortality rate by improving self- and early-detection of melanomas would be a welcome addition to dermatology, but we have to make sure patients aren't being harmed by tools that deliver inaccurate results."

The researchers further warn that even though the free or low-cost apps are specified as educational only, they are not subject to regulatory oversight and should be used with caution.

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Manti Te'o kept girlfriend myth alive after revelation

SOUTH BEND, Ind. Not once but twice after he supposedly discovered his online girlfriend of three years never even existed, Notre Dame All-American linebacker Manti Te'o perpetuated the heartbreaking story about her death.

13 Photos

Manti Te'o

An Associated Press review of news coverage found that the Heisman Trophy runner-up talked about his doomed love in a Web interview on Dec. 8 and again in a newspaper interview published Dec. 11. He and the university said Wednesday that he learned on Dec. 6 that it was all a hoax, that not only wasn't she dead, she wasn't real.

On Thursday, a day after Te'o's inspiring, playing-through-heartache story was exposed as a bizarre lie, Te'o and Notre Dame faced questions from sports writers and fans about whether he really was duped, as he claimed, or whether he and the university were complicit in the hoax and misled the public, perhaps to improve his chances of winning the Heisman.

Yahoo sports columnist Dan Wetzel said the case has "left everyone wondering whether this was really the case of a naJive football player done wrong by friends or a fabrication that has yet to play to its conclusion."

Gregg Doyel, national columnist for CBSSports.com, was more direct.

"Nothing about this story has been comprehensible, or logical, and that extends to what happens next," he wrote. "I cannot comprehend Manti Te'o saying anything that could make me believe he was a victim."

On Wednesday, Te'o and Notre Dame athletic director Jack Swarbrick said the player was drawn into a virtual romance with a woman who used the phony name Lennay Kekua, and was fooled into believing she died of leukemia in September. They said his only contact with the woman was via the Internet and telephone.

Te'o also lost his grandmother — for real — the same day his girlfriend supposedly died, and his role in leading Notre Dame to its best season in decades endeared him to fans and put him at the center of college football's biggest feel-good story of the year.

Relying on information provided by Te'o's family members, the South Bend Tribune reported in October that Te'o and Kekua first met, in person, in 2009, and that the two had also gotten together in Hawaii, where Te'o grew up.

Te'o never mentioned a face-to-face meeting with Kekua in public comments reviewed by the AP. And an AP review of media reports about Te'o since Sept. 13 turned up no instance in which he directly confirmed or denied those stories — until Wednesday.

Among the outstanding questions Thursday: Why didn't Te'o ever clarify the nature of his relationship as the story took on a life of its own?

Te'o's agent, Tom Condon, said the athlete had no plans to make any public statements Thursday in Bradenton, Fla., where he has been training with other NFL hopefuls at the IMG Academy.

Notre Dame said Te'o found out that Kekau was not a real person through a phone call he received at an awards ceremony in Orlando, Fla., on Dec. 6. He told Notre Dame coaches about the situation on Dec. 26.

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Manti Te'o's girlfriend hoax: How did it happen?

The AP's media review turned up two instances during that gap when the football star mentioned Kekua in public.

Te'o was in New York for the Heisman presentation on Dec. 8 and, during an interview before the ceremony that ran on the WSBT.com, the website for a South Bend TV station, Te'o said: "I mean, I don't like cancer at all. I lost both my grandparents and my girlfriend to cancer. So I've really tried to go to children's hospitals and see, you know, children."

In a story that ran in the Daily Press of Newport News, Va., on Dec. 11, Te'o recounted why he played a few days after he found out Kekau died in September, and the day she was supposedly buried.

"She made me promise, when it happened, that I would stay and play," he said.

On Wednesday, Swarbrick said Notre Dame did not go public with its findings sooner because it expected the Te'o family to come forward first. But Deadspin.com broke the story Wednesday.

Reporters were turned away Thursday at the main gate of IMG's sprawling, secure complex. Te'o remained on the grounds, said a person familiar with situation who spoke on condition of anonymity because neither Te'o nor IMG authorized the release of the information.

"This whole thing is so nutsy that I believe it only could have happened at Notre Dame, where mythology trumps common sense on a daily basis. ... Given the choice between reality and fiction, Notre Dame always will choose fiction," sports writer Rick Telander said in the Chicago Sun-Times.

"Which brings me to what I believe is the real reason Te'o and apparently his father, at least went along with this scheme: the Heisman Trophy.

Chicago Tribune columnist John Kass blasted both Te'o and Notre Dame.

"When your girlfriend dying of leukemia after suffering a car crash tells you she loves you, even if it might help you win the Heisman Trophy, you check it out," he said.

He said the university's failure to call a news conference and go public sooner means "Notre Dame is complicit in the lie."

"The school fell in love with the Te'o girlfriend myth," he wrote.

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Lance Armstrong Confesses to Doping

Lance Armstrong, formerly cycling's most decorated champion and considered one of America's greatest athletes, confessed to cheating for at least a decade, admitting on Thursday that he owed all seven of his Tour de France titles and the millions of dollars in endorsements that followed to his use of illicit performance-enhancing drugs.

After years of denying that he had taken banned drugs and received oxygen-boosting blood transfusions, and attacking his teammates and competitors who attempted to expose him, Armstrong came clean with Oprah Winfrey in an exclusive interview, confessing to using banned substances for decades.

"I view this situation as one big lie that I repeated a lot of times," he said.

In October, the U.S. Anti-Doping Agency issued a report in which 11 former teammates exposed the system with which they and Armstrong received drugs with the knowledge of their coaches and help of team physicians.

READ MORE: Did Doping Cause Armstrong's Cancer?

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

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The U.S. Postal Service Cycling Team "ran the most sophisticated, professionalized and successful doping program that sport has ever seen," USADA said in its report.

Armstrong said he was driven to cheat by a "ruthless desire to win."

He told Winfrey that his competition "cocktail" consisted of EPO, blood transfusions and testosterone, and that he had previously used cortisone.

He said he stopped doping following his 2005 Tour de France victory and did not use banned substances when he placed third in 2009 and entered the race again in 2010.

"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.

PHOTOS: Olympic Doping Scandals: Past and Present

Armstrong would not name other members of his team who doped, but admitted that as the team's captain he set an example. He admitted he was "a bully" but said there "there was a never a directive," from him that his teammates had to use banned substances.

"At the time it did not feel wrong?" Winfrey asked.

"No," Armstrong said. "Scary."

"Did you feel bad about it?" she asked again.

"No," he said.

Also on Thursday, before the Winfrey interview aired, the International Olympic Committee stripped Armstrong his of 2000 Olympic bronze medal.

READ MORE: 10 Scandalous Public Confessions

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Algeria ends desert siege, but dozens killed

ALGIERS (Reuters) - Algerian forces stormed a desert gas complex to free hundreds of hostages but 30, including several Westerners, were killed in the assault along with at least 11 of their Islamist captors, an Algerian security source told Reuters.

Western leaders whose compatriots were being held did little to disguise their irritation at being kept in the dark by Algeria before the raid - and over its bloody outcome. French, British and Japanese staff were among the dead, the source said.

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops whose commanders said they moved in about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.

And while a crisis has ended that posed a serious dilemma for Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in neighboring Mali, it left question marks over the ability of OPEC-member Algeria to protect vital energy resources and strained its relations with Western powers.

Two Japanese, two Britons and a French national were among at least seven foreigners killed, the source told Reuters. Eight dead hostages were Algerian. The nationalities of the rest, as well as of perhaps dozens more who escaped, were unclear. Some 600 local Algerian workers, less well guarded, survived.

Fourteen Japanese were among those still unaccounted for by the early hours of Friday, their Japanese employer said.

Americans, Norwegians, Romanians and an Austrian have also been mentioned by their governments as having been captured by the militants who called themselves the "Battalion of Blood" and had demanded France end its week-old offensive in Mali.

Underlining the view of African and Western leaders that they face a multinational Islamist insurgency across the Sahara - a conflict that prompted France to send hundreds of troops to Mali last week - the official source said only two of the 11 dead militants were Algerian, including the squad's leader.

The bodies of three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman were found, the security source said.

The group had claimed to have dozens of guerrillas on site and it was unclear whether any militants had managed to escape.

The overall commander, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present and has now risen in stature among a host of Saharan Islamists, flush with arms and fighters from chaotic Libya, whom Western powers fear could spread violence far beyond the desert.

"NO TO BLACKMAIL"

Algeria's government spokesman made clear the leadership in Algiers remains implacably at odds with Islamist guerrillas who remain at large in the south years after the civil war in which some 200,000 people died. Communication Minister Mohamed Said repeated their refusal ever to negotiate with hostage-takers.

"We say that in the face of terrorism, yesterday as today as tomorrow, there will be no negotiation, no blackmail, no respite in the struggle against terrorism," he told APS news agency.

British Prime Minister David Cameron, who warned people to prepare for bad news and who canceled a major policy speech on Friday to deal with the situation, said through a spokesman that he would have liked Algeria to have consulted before the raid.

A Briton and an Algerian had also been killed on Wednesday.

The prime minister of Norway, whose state energy company Statoil runs the Tigantourine gas field with Britain's BP and Algeria's national oil company, said he too was not informed.

U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.

A U.S. official said on Thursday it would provide transport aircraft to help France with a mission whose vital importance, President Francois Hollande said, was demonstrated by the attack in Algeria. Some fear, however, that going on the offensive in the remote region could provoke more bloodshed closer to home.

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 security measures that are outwardly draconian.

Foreign firms were pulling non-essential staff out of the country, which has recovered stability only in recent years and whose ruling establishment, heirs to fighters who ended French rule 50 years ago, has resisted demands for reform and political freedoms of the kind that swept North Africa in the Arab Spring.

"The embarrassment for the government is great," said Azzedine Layachi, an Algerian political scientist at New York's St John's University. "The heart of Algeria's economy is in the south. where the oil and gas fields are. For this group to have attacked there, in spite of tremendous security, is remarkable."

"KILL INFIDELS"

A local man who had escaped from the facility told Reuters the militants appeared to have inside knowledge of the layout of the complex, supporting the view of security experts that their raid was long-planned, even if the Mali war provided a motive.

"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "'We will kill them,' they said."

Algiers, whose leaders have long had frosty relations with the former colonial power France and other Western countries, may have some explaining to do over its tactics in putting an end to a hostage crisis whose scale was comparable to few in recent decades bar those involving Chechen militants in Russia.

Government spokesman Said sounded unapologetic, however: "When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," he told state news agency APS, which said some 600 local workers were freed.

The militants said earlier they had 41 foreign hostages.

"ARMY BLASTED HOSTAGES"

Stephen McFaul, an electrical engineer, told his family in Northern Ireland after the operation that he narrowly escaped death, first when bound and gagged by the gunmen who fastened explosives around the hostages' necks and then on Thursday when he was in a convoy of five vehicles driving across the complex.

"(The gunmen) were moving five jeeploads of hostages from one part of the compound," his brother Brian McFaul said. "At that stage, they were intercepted by the Algerian army.

"The army bombed four out of five of the trucks and four of them were destroyed ... He presumed everyone else in the other trucks was killed ... The truck my brother was in crashed and at that stage Stephen was able to make a break for his freedom."

McFaul said it was unclear whether the vehicles had been struck by missiles fired from helicopters or by ground forces.

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground there, and combat was under way against the rebels that it first began targeting from the air last week.

"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," Hollande said on Thursday.

The French action last week came as a surprise but received widespread public international support. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

(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 Alastair Macdonald; Editing by Peter Millership)

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Cycling: "One big lie" Armstrong says of 7 drug-fuelled Tours

LOS ANGELES: Lance Armstrong admitted his seven Tour de France titles were fuelled by an array of drugs, reversing years of denials in a televised interview with Oprah Winfrey broadcast Thursday.

Attempting to explain his drug-tainted past, Armstrong sat down with Winfrey for his first interview since being stripped last year of his record seven Tour titles and banned from sport for life.

It was recorded on Monday in Austin, Texas, and was to be aired in two segments on Thursday and Friday on Winfrey's OWN television channel.

"I know the truth. The truth isn't what was out there, the truth isn't what I said... This story was so perfect for so long... you overcome the disease, you win the Tour de France seven times, you have a happy marriage, you have children. I mean, it's just this mythic, perfect story," Armstrong said.

"And it wasn't true."

In an opening series of "yes" or "no" questions, Armstrong admitted using blood-boosting EPO, blood doping transfusions and testosterone or human growth hormone.

Armstrong told Winfrey he didn't believe it was possible to win the Tour in the years he raced without doping, and challenged the characterisation of the doping program on his US Postal Service team as the most sophisticated ever.

Hours before the kickoff, Armstrong saw another accolade withdrawn as the International Olympic Committee said it had asked him to return the cycling time-trial bronze medal he won in 2000.

The International Cycling Union last year upheld the US Anti-Doping Agency's ban of Armstrong, and the revocation of his cycling results from August 1998, but the IOC waited for three weeks to see if Armstrong planned an appeal.

While Winfrey confirmed on Tuesday reports that Armstrong had admitted using banned performance enhancers in their talk, little else was known of what he would reveal.

Speculation swirled as to whether he had implicated others -- notably members of the sport's world governing body -- amid allegations of complicity and cover-up.

The difficulty of untangling the doping web in cycling was again clear when the IOC's move recalled the 2000 Olympic time-trial medallists.

Abraham Olano of Spain, who was fourth, could inherit the bronze after finishing fourth in a race won by Armstrong's ex-US Post Service team-mate Viasheslav Ekimov, with Germany's Jan Ullrich taking silver.

Ekimov is now general manager of the Katusha cycling team that were dropped from the elite ProTeam list for this season because of their ambivalent stance on doping, and Ullrich eventually served a two-year ban for doping.

Some have speculated that Armstrong might attempt to rationalize doping as standard procedure in the years of his cycling career.

Certainly his admission, and his choice of the famously sympathetic Winfrey as confessor, are an about face after years of aggressive denials and often vitriolic attacks on those who doubted him.

"No one could have imagined only a few weeks ago that Lance Armstrong would make his confession publicly, that he would confess in public to having been doped," Tour de France director Christian Prudhomme told reporters in Paris.

"It's obviously something very important but I can't say more than that ... For us, Lance Armstrong is already in the past."

This week's exercise, however, is about the future, with Armstrong reportedly seeking a way back into sports and those in cycling wondering just who will be implicated in his revelations.

-AFP/fl

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Execs' e-mails key in employee no-poaching lawsuit, judge says

E-mails reveal that executives at Apple and Google saw a substantial financial benefit to a mutual agreement not to recruit each other's employees, a federal judge said today.

The comments came in relation to a lawsuit brought by five former employees at various tech companies, alleging that an illegal conspiracy eliminated competition for talent. The lawsuit, filed in 2011, accuses Apple, Adobe Systems, Google, Pixar, Intel, and Intuit of conspiring to keep workers' salaries artificially low.

U.S. District Judge Lucy Koh, who is pondering whether to award class action status to the lawsuit, also ordered Apple CEO Tim Cook to be questioned by plaintiffs' attorneys for four hours, according to a Reuters report. Koh said the biggest challenge facing defendants was their belief that the collective approach to hiring was most efficient.

CNET has contacted Apple for comment and will update this report when we learn more.

An unredacted court filing in January 2012 recounted an e-mail exchange between late Apple co-founder and CEO Steve Jobs and then-Google CEO and Apple board member Eric Schmidt, in which Jobs politely asks Schmidt to stop trying to hire one of Apple's engineers.

"I would be very pleased if your recruiting department would stop doing this," Jobs wrote to Schmidt on March 7, 2007.

According to the exchange detailed in the filing, Schmidt then sent the request on, saying "I believe we have a policy of no recruiting from Apple and this is a direct inbound request. Can you get this stopped and let me know why this is happening? I will need to send a response back to Apple quickly so please let me know as soon as you can."

The exchange led to the immediate firing of the recruiter who had attempted to hire the engineer in question, with Google's staffing director writing back "please extend my apologies as appropriate to Steve Jobs," and noting that it was "an isolated incident."

The suit focuses specifically on the companies targeted by a 2009 antitrust investigation by the U.S. Department of Justice. That investigation, and the civil lawsuit that followed, were settled back in September 2011, with the aforementioned companies agreeing to discontinue the non-solicitation agreements. Nonetheless, the suit says the companies are still profiting in the aftermath of the practice.

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