DATE=8/26/98 TYPE=CORRESPONDENT REPORT NUMBER=2-237679 TITLE=ABU NIDAL ARREST (S) BYLINE=JIM RANDLE DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: ONE OF THE WORLD'S MOST WANTED TERRORISTS IS REPORTED TO BE IN CUSTODY IN EGYPT. ABU NIDAL WAS RESPONSIBLE FOR SCORES OF TERRORIST ATTACKS IN EUROPE AND THE MIDDLE EAST IN THE 1970'S AND '80'S. CORRESPONDENT JIM RANDLE REPORTS, THE EGYPTIAN GOVERNMENT AND ABU NIDAL'S GROUP BOTH DENY HE IS IN JAIL. TEXT: ABU NIDAL IS ACCUSED OF ORCHESTRATING ATTACKS IN 20 COUNTRIES THAT LEFT 900 PEOPLE DEAD. STORIES IN SEVERAL PROMINENT U-S NEWSPAPERS CITE U-S AND ARAB OFFICIALS WHO SAY THAT ABU NIDAL WAS ARRESTED BY EGYPT ONE-MONTH AGO. SOME OF THE STORIES SAY ABU NIDAL, WHOSE REAL NAME IS SABRI AL BANNA, IS SERIOUSLY ILL AND WAS SEEKING MEDICAL TREATMENT NOT AVAILABLE TO HIM IN LIBYA. REPORTS OF HIS ARREST FIRST SURFACED LAST WEEK IN ARABIC LANGUAGE NEWSPAPERS IN LONDON. IN BEIRUT, ABU NIDAL'S GROUP, THE FATAH REVOLUTIONARY COUNCIL, SAYS HE IS NEITHER ILL NOR UNDER ARREST. THE GROUP SPLIT FROM THE PALESTINE LIBERATION ORGANIZATION IN 1974. (SIGNED) NEB/RAE 26-Aug-98 7:08 AM EDT (1108 UTC) NNNN Source: Voice of America .