Iraqi police Friday rescued two of the four American security contract workers taken hostage from a convoy in southern Iraq. The four were taken along with one man from Austria, also a security worker. In addition to the two freed, one of the five was found dead - it is yet unclear whether the dead man is one of the remaining two Americans, or is the Austrian.

The search continues for the remaining two, believed to have been amongst those taken as part of a captured convoy near Nasiriyah. The four, along with an Austrian hostage, were working as security personnel for Crescent Security Group, who was escorting the convoy and is based in Kawait.

Armed gunmen initially took 14 people hostage, and took 20 of the convoy's 43 vehicles. Eye witnesses say the gunmen were disquised in Iraqi police uniforms and had set up a fake checkpoint along the route, where they stopped the convoy.

Soon after the ambush, other hostages were released except for the four Americans and a former soldier from Austria. Both U.S. troops and Iraqi police are involved in the intensive search, which is taking place in southern Iraq near the Kawaiti border.

Meanwhile, British troops responded to another convoy attack around noon, also in southern Iraq near the town of Basra. Details are unknown, but the incident is reported to have involved shooting between civilian security personnel in the convoy, and gunmen dressed as Iraqi police. One Briton was wounded in the fight. One other civilian was killed, along with two of the Iraqi policemen.