MILITIA LOYAL TO SOMALIA'S ISLAMIC COURTS SEIZED A STRATEGIC TOWN OUTSIDE MOGADISHU ON SUNDAY, DISLODGING A KEY MEMBER OF A WARLORD COALITION IN FIERCE FIGHTING THAT LEFT 18 PEOPLE DEAD, OFFICIALS AND RESIDENTS SAID. THE TOWN OF BALAD, 30 KM (20 MILES) NORTH OF MOGADISHU, FELL TO THE ISLAMIC MILITIA AFTER TWO HOURS OF INTENSE BATTLE. "BALAD IS IN OUR HANDS. THE ENEMY HAS ESCAPED FROM THE TOWN," SAID ISLAMIC COURTS MILITIA LEADER MOALLIM HASHI MOHAMED, WHOSE FORCES HAVE BEEN FIGHTING THOSE OF WARLORD MUSE SUDI YALAHOW. THERE WAS NO IMMEDIATE COMMENT FROM THE MUSE SUDI SIDE, BUT WITNESSES REPORTED SEEING HIS FORCES HEADING TOWARDS JOWHAR, A TOWN 90 KM (55 MILES) FROM MOGADISHU. A SENIOR COALITION MILITIA MEMBER, ALI NUR, CONFIRMED THAT THE WARLORD HAD LEFT BALAD FOLLOWING THREE DAYS OF FIGHTING. "I AM TOLD 18 PEOPLE HAVE DIED FROM BOTH SIDES AND OVER 50 WERE WOUNDED," NUR TOLD REUTERS. WITNESSES SAID THE ISLAMIC MILITIA HAD GONE TO A PRISON IN BALAD AND FREED DOZENS OF DETAINEES. THE SMALL TOWN IS IMPORTANT BECAUSE IT LIES ON THE ROUTE CONNECTING THE CAPITAL TO THE FERTILE AGRICULTURE AREAS OF MIDDLE SHABELLE AND LOWER SHABELLE. IT IS ALSO ON THE ROUTE THAT THE WARLORDS HAVE BEEN USING TO GET SUPPLIES FROM JOWHAR, A STRONGHOLD OF A POWERFUL ALLY, MOHAMED DHEERE.