Grammy-winning singer Natalie Cole has been diagnosed with hepatitis C, her publicist said in a statement yesterday.

Hepatitis C is a liver disease spread through contact with infected blood. The statement said the disease was revealed during a routine examination and was likely caused by her drug use years ago.

"I've been so fortunate to have learned so much from my past experiences," said Cole. "I am embraced by the love and support of my family and friends; I am committed to my belief in myself and in my abiding faith to meet this challenge with a heartfelt optimism and determination. This is how I intend to deal with this current challenge in my life."

Dr. Graham Woolf, Associate Clinical Professor of Medicine at UCLA/Cedars Sinai Medical Center, said that Cole, 58, has had a "terrific response to her medication and is now virus negative."

"This gives her an increased chance of cure," he said.

Cole, the daughter of jazz legend Nat King Cole, is due to release "Still Unforgettable," the follow-up to 1991's Grammy-winning, multi-platinum CD "Unforgettable ... With Love," on which she remade some of her father's classics, in September. (Associated Press)

NAKED ARREST

Steven Page, singer and guitarist for the band Barenaked Ladies, was charged with fourth-degree criminal possession of a controlled substance last week in the Syracuse area, police said.

Authorities said Page was arrested at about 2 a.m., after police noticed a car with its driver's side door left open. They say they found Page and two women in a nearby apartment, along with cocaine and marijuana.

Barenaked Ladies' manager Terry McBride confirmed the charge to the Post-Standard of Syracuse but declined to comment further. The singer, released after paying $10,000 bail, was due in court today.

Page helped form the band in 1988. The group, know for hits such as "One Week" and "Pinch Me," recently released their debut kids CD, "Snacktime." (AP)

PROMOTER FRAUD

Former boy band promoter Lou Pearlman will have to repay victims of his decades-long investment fraud at least $300 million in restitution.

Yesterday, a federal judge asked lawyers to draw up the order for his approval.

It's unclear whether the creator of the Backstreet Boys and 'N Sync will be able to raise those funds while behind bars. He's serving a 25-year sentence on federal fraud charges.

Prosecutors also wanted U.S. District Judge G. Kendall Sharpe to tack on interest, making the repayment $424 million. Pearlman's defense says that's unfair because the money was never invested.

The judge said he'd make a decision after Pearlman returns at least some of the principal.

So far investigators have recovered few assets remaining from Pearlman's former entertainment empire.

ROLLING STONE IN REHAB

Ronnie Wood entered a rehabilitation facility yesterday for help with alcoholism, said a spokeswoman for the Rolling Stones guitarist.

"Following Ronnie's continued battle with alcohol he has entered a period of rehab," the spokeswoman said on condition of anonymity as required by her agency. "His close family and friends say he is seeking help and look forward to his recovery."

Wood, 61, has fought a long battle with alcoholism during his rock 'n' roll career, which started in the 1960s when he played with the band The Faces.

His spokeswoman didn't release any details about the treatment he will receive or the clinic that he entered.

The craggy guitarist had seemed to be in good health in recent years. He has developed a strong second career as an artist, selling his paintings at some of London's respected art galleries.

But he has been the focus of feverish recent newspaper reports about his resuming drinking. (AP)