FINANCIAL INFORMATION
 
 IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS (SUCCESSOR COMPANY)
 AS OF DECEMBER 31, 2003 AND 2004
 (In thousands of U.S. Dollars, except per share amounts)
 
 
 2003 2004
 ------------------
 ASSETS
CURRENT ASSETS:
 Cash and cash equivalents $61,498 $63,655
 Trading investments 2,474 -
 Trade accounts receivable, net 31,213 29,363
 Other receivables 11,630 12,865
 Prepaid expenses 2,249 3,008
 ------------------
 Total current assets 109,064 108,891
  ------------------
PROPERTY, PLANT AND EQUIPMENT, Net 315,817 317,310
 ------------------
NON-CURRENT ASSETS:
 Investments in common stock  1,873 -
 Other non-current assets 13,875 17,706
 ------------------
 Total non-current assets 15,748 17,706
  ------------------
TOTAL $440,629 $443,907
 ==================
 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
 Accounts payable -- trade $37,095 $36,485
 Short term debt 2,656
 Current portion of long-term debt 11,851 45,092
 Accrued and other liabilities 33,140 31,217
 ------------------
 Total current liabilities 82,086 115,450
LONG-TERM DEBT, Net 249,394 233,335
OTHER LONG-TERM LIABILITIES  11,904 16,109
 ------------------
 Total liabilities 343,384 364,894
 ------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
 Preferred stock, $0.01 par value; 5,000,000 shares
 authorized, no shares outstanding as of December 
 31, 2003 and 2004 - -
 Common stock, $0.01 par value; 50,000,000 shares
 authorized, 10,100,000 and 10,116,100 shares
 issued and outstanding (including 150,000 and 
 100,000 restricted shares held in the 2003 Stock 
 Incentive Plan as of December 31, 2003 and 2004, 
 respectively) 101 101
 Additional paid in capital 90,294 90,542
 Retained earnings (accumulated deficit) 9,477 (4,742)
 Deferred stock-based compensation  (1,320) (880)
 Accumulated other comprehensive loss (1,307) (6,008)
 ------------------
 Total stockholders' equity 97,245 79,013
  ------------------
TOTAL $440,629 $443,907
 ==================
 
 IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
 
  CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands of U.S. Dollars, except per share amounts)
 
 Predecessor Predecessor Successor Successor
 Company Company Company Company
  ----------- --------------------- ---------
 Nine
 Three Months Year
 Year Ended Months Ended  Ended
 December Ended December December
 31, March 31, 31, 31,
 2002 2003 2003 2004
 ----------- --------------------- ---------
NET REVENUES:
 Broadband and satellite $173,265 $41,382 $120,855 $161,964
 Internet 27,243 5,733 18,308 26,125
 Value added services 14,191 4,781 10,557 16,674
 Telephony 14,327 4,106 13,568 21,673
 Sales of equipment 1,168 74 926 1,279
 ----------- --------------------- ---------
 Total net
 revenues 230,194 56,076 164,214 227,715
 ----------- --------------------- ---------
COSTS AND EXPENSES:
 Direct costs:
 Contracted services 19,199 4,125 13,376 21,285
 Other direct costs 25,935 4,696 18,353 20,647
 Leased capacity 74,679 17,407 49,516 67,632
 Cost of equipment
 sold 576 48 803 963
 ----------- --------------------- ---------
 Total direct costs 120,389 26,276 82,048 110,527
 Salaries and wages 47,894 10,727 35,639 46,339
 Selling, general and
 administrative 28,204 5,553 19,824 23,581
 Gain on extinguishment
 of debt (16,367) (14,253) (115)
 Depreciation and
 amortization 82,766 19,358 29,535 44,797
 ----------- --------------------- ---------
 Total costs and
 expenses 262,886 61,914 152,793 225,129
 ----------- --------------------- ---------
Operating (loss) income (32,692) (5,838) 11,421 2,586
 ----------- --------------------- ---------
OTHER INCOME (EXPENSE):
 Interest income 1,907 200 1,068 1,136
 Interest expense
 (contractual interest
 of $128,023 in 2002 and
 $21,801 for the three 
 months ended March 31,
 2003 (Predecessor)) (75,815) (1,909) (14,435) (21,106)
 Net (loss) gain on
 foreign exchange (91,884) 9,969 17,566 5,804
 Recognition of other-
 than-temporary
 decline in value of
 investments (794)
 Reorganization items (23,297) 726,127
 Legal settlement 26,229
 Other (loss) income, net (5,896) 2,923 (4,689) 840
 ----------- --------------------- ---------
 Total other
 (expense)
 income (169,550) 737,310 (490) (13,326)
 ----------- --------------------- ---------
(Loss) income before
 income taxes  (202,242) 731,472 10,931 (10,740)
Provision for foreign
 income taxes (2,273) (406) (1,454) (3,479)
 ----------- --------------------- ---------
NET (LOSS) INCOME $(204,515) $731,066 $9,477 $(14,219)
 =========== ===================== =========
NET (LOSS) INCOME PER
 COMMON SHARE:
 BASIC $(2.24) $8.00 $0.96 $(1.42)
 =========== ===================== =========
 DILUTED $(2.24) $8.00 $0.72 $(1.42)
 =========== ===================== =========
WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES:
 BASIC 91,429  91,429 9,917 9,994
 =========== ===================== =========
 DILUTED 91,429 91,429 16,057 9,994
 =========== ===================== =========
 
 Appendix I
 
 SUPPLEMENTAL FINANCIAL INFORMATION
 
 Reconciliation of EBITDA to Operating (Loss) Income
 
 
 Twelve months ended
 ------------------------
  December December December
 31, 31, 31,
 2002 2003 2004
----------------------------------------------------------------------
 EBITDA 33,707 40,223 47,268
 Depreciation and Amortization (82,766)(48,893)(44,797)
 Gain on early extinguishment of debt 16,367 14,253 115
 Operating Income (Loss)  (32,692) 5,583 2,586
----------------------------------------------------------------------

SOURCE: IMPSAT Fiber Networks, Inc.

CONTACT: Hector Alonso, Chief Financial Officer
Santiago F. Rossi, Investor Relations
Impsat Fiber Networks, Inc.
54.11.5170.3700
www.impsat.com
or
Kevin Kirkeby / Lauren Puffer
The Global Consulting Group
646.284.9400
 
Copyright Business Wire 2005

-0-

KEYWORD: Argentina
 Venezuela
 Brazil
 Colombia
 South America
INDUSTRY KEYWORD: Technology
 Internet
 Networks
 Telecommunications
SUBJECT CODE: Earnings