vs. vs.

LINES 2Q03 1Q04 2Q04 2Q03 1Q04

Business Lines 23,218 24,700 26,506 14% 7%

Residential Lines 105,421 107,159 110,792 5% 3%

Total Voice Lines 128,639 131,859 137,298 7% 4%

Wholesale 6,020 6,970 9,940 65% 43%

TOTAL 134,659 138,829 147,238 9% 6%

CUSTOMERS 2Q03 1Q04 2Q04 vs. vs.

2Q03 1Q04

Business 3,738 3,753 3,802 2% 1%

Residential 94,569 98,579 102,645 9% 4%

TOTAL 98,307 102,332 106,447 8% 4%

Mexico 46,148 47,079 48,452 5% 3%

Puebla 49,570 52,805 55,474 12% 5%

Queretaro 2,589 2,448 2,521 -3% 3%

TRAFFIC 2Q03

Million Minutes Apr May Jun Total

Inbound 66.5 69.1 67.9 203.5

Outbound 135.9 136.7 148.4 421.0

Outbound Local 95% 94% 95% 95%

Outbound LD 5% 6% 5% 5%

TRAFFIC 1Q04

Million Minutes Jan Feb Mar Total

Inbound 64.0 61.5 72.5 198.0

Outbound 120.7 114.4 159.6 394.7

Outbound Local 95% 95% 95% 95%

Outbound LD 5% 5% 5% 5%

TRAFFIC 2Q04

Million Minutes Apr May Jun Total

Inbound 64.4 67.0 68.3 199.7

Outbound 161.9 172.2 174.0 508.2

Outbound Local 95% 96% 96% 96%

Outbound LD 5% 4% 4% 4%

vs. vs.

ARPU (US$) 2Q03 1Q04 2Q04 2Q03 1Q04

Business

Monthly Charges 22.98 19.58 19.36 -16% -1%

Usage 54.49 46.01 50.71 -7% 10%

Subtotal 77.47 65.59 70.07 -10% 7%

Non-recurring 3.51 3.19 2.41 -31% -25%

Total Business $80.99 $68.79 $72.48 -11% 5%

Residential

Monthly Charges 16.31 15.58 15.90 -3% 2%

Usage 11.83 11.58 12.16 3% 5%

Subtotal 28.14 27.16 28.06 0% 3%

Non-recurring 1.38 1.19 1.45 5% 21%

Total Residential $29.52 $28.35 $29.51 0% 4%

Company

Monthly Charges 17.55 16.34 16.57 -6% 1%

Usage 19.72 18.06 19.56 -1% 8%

Subtotal 37.26 34.39 36.12 -3% 5%

Non-recurring 1.78 1.57 1.63 -8% 4%

Total Company $39.04 $35.96 $37.75 -3% 5%

MAXCOM TELECOMUNICACIONES, S.A. DE C.V.

CONSOLIDATED BALANCE SHEET (Thousands of Mexican pesos "Ps" with purchasing power as of June 30, 2004 and thousands of US Dollars "$")

June 30, 2003

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 61,834 $5,419

Restricted cash -- --

61,834 5,419

Accounts receivable:

Customers, net of allowance 116,339 10,195

Value added tax refundable -- --

Other sundry debtors 9,586 840

125,925 11,035

Inventory 19,106 1,674

Prepaid expenses 42,525 3,726

Total current assets 249,390 21,854

Frecuency rights, Net 106,898 9,367

Telephone network systems &

Equipment, Net 1,600,914 140,287

Preoperating expenses, Net 199,452 17,478

Intangible Assets, Net 426,868 37,407

Other assets 29,136 2,553

Total assets Ps 2,612,658 $228,946

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 4,579 $401

Accrued expenses and other accounts

payable 165,716 14,521

Customers deposits 3,119 273

Payroll and other taxes payable 29,119 2,552

Total current liabilities 202,533 17,747

LONG-TERM LIABILITIES:

Senior notes, net 1,956,394 171,439

Notes payable 9,038 792

Total liabilities Ps 2,167,965 $189,978

SHAREHOLDERS' EQUITY

Capital stock 1,780,065 155,987

Additional paid-in capital 2,717 238

Accumulated deficit (1,146,404) (100,460)

Net loss for the period (191,685) (16,797)

Total shareholders' equity

(deficit) Ps 444,693 $38,968

Ps 2,612,658 $228,946

March 31, 2004

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 50,725 $4,445

Restricted cash -- --

50,725 4,445

Accounts receivable:

Customers, net of allowance 133,475 11,696

Value added tax refundable -- --

Other sundry debtors 14,126 1,238

147,601 12,934

Inventory 18,086 1,585

Prepaid expenses 61,176 5,361

Total current assets 277,588 24,325

Frecuency rights, Net 96,093 8,421

Telephone network systems &

Equipment, Net 1,486,392 130,253

Preoperating expenses, Net 168,784 14,791

Intangible Assets, Net 368,302 32,274

Other assets 26,381 2,312

Total assets Ps 2,423,540 $212,376

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 9,353 $820

Accrued expenses and other accounts

payable 150,416 13,181

Customers deposits 2,109 185

Payroll and other taxes payable 54,353 4,763

Total current liabilities 216,231 18,949

LONG-TERM LIABILITIES:

Senior notes, net 1,998,503 175,129

Notes payable 14,374 1,260

Total liabilities Ps 2,229,108 $195,338

SHAREHOLDERS' EQUITY

Capital stock 1,780,065 155,987

Additional paid-in capital 1,491 131

Accumulated deficit (1,519,342) (133,140)

Net loss for the period (67,782) (5,940)

Total shareholders' equity

(deficit) Ps 194,432 $17,038

Ps 2,423,540 $212,376

June 30, 2004

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 39,412 $3,454

Restricted cash -- --

39,412 3,454

Accounts receivable:

Customers, net of allowance 136,279 11,942

Value added tax refundable -- --

Other sundry debtors 18,164 1,592

154,443 13,534

Inventory 16,716 1,465

Prepaid expenses 62,617 5,487

Total current assets 273,188 23,940

Frecuency rights, Net 94,405 8,273

Telephone network systems &

Equipment, Net 1,488,522 130,438

Preoperating expenses, Net 160,938 14,103

Intangible Assets, Net 352,627 30,901

Other assets 25,867 2,267

Total assets Ps 2,395,547 $209,922

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 4,781 $419

Accrued expenses and other accounts

payable 187,480 16,429

Customers deposits 2,156 189

Payroll and other taxes payable 52,290 4,582

Total current liabilities 246,707 21,619

LONG-TERM LIABILITIES:

Senior notes, net 2,043,239 179,049

Notes payable 9,145 801

Total liabilities Ps 2,299,091 $201,469

SHAREHOLDERS' EQUITY

Capital stock 1,780,077 155,988

Additional paid-in capital 1,491 131

Accumulated deficit (1,519,342) (133,140)

Net loss for the period (165,770) (14,526)

Total shareholders' equity

(deficit) Ps 96,456 $8,453

Ps 2,395,547 $209,922

NOTES TO FINANCIAL STATEMENTS:

Financial statements are reported in period-end pesos as of June 30, 2004 to adjust for the inter-period effect of inflation. For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$11.4116 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A. DE C.V.

CONSOLIDATED STATEMENT OF OPERATIONS

YEAR 2003 AND 2004 QUARTERLY PERIODS

(Thousands of Mexican pesos "Ps" with purchasing power as of June 30,

2004 and thousands of US Dollars "$")

April 1 to

June 30, 2003

Pesos US Dollars %

Voice 166,658 14,604 88%

Data 5,269 462 3%

Wholesale 16,622 1,457 9%

TOTAL REVENUES Ps 188,549 $16,523 100%

Network operating services 48,460 4,247 26%

Technical expenses 14,728 1,291 8%

Installation expenses 4,692 411 2%

Cost of Network Operation 67,880 5,949 36%

GROSS PROFIT 120,669 10,574 64%

SG&A 94,818 8,309 50%

EBITDA 25,851 2,265 14%

Depreciation and amortization 94,943 8,320

Operating Loss (69,092) (6,055)

Comprehensive (Income) Cost of

Financing:

*Interest expense 5,694 499

**Interest income 1,064 93

Exchange (income) loss, net (54,942) (4,815)

Gain on net monetary position 921 81

(47,263) (4,142)

Other income (Expense) 558 49

INCOME (LOSS) BEFORE TAXES (22,387) (1,962)

Provisions for:

Asset Tax 1,722 151

Income Tax & Profit Sharing 130 11

Total Provisions 1,852 162

Impairment loss -- --

NET INCOME (LOSS) Ps (24,239) $(2,124)

January 1 to

March 31, 2004

Pesos US Dollars %

Voice 158,501 13,889 85%

Data 10,536 923 5%

Wholesale 18,443 1,616 10%

TOTAL REVENUES Ps 187,480 $16,428 100%

Network operating services 47,461 4,159 25%

Technical expenses 18,323 1,606 10%

Installation expenses 2,273 199 1%

Cost of Network Operation 68,057 5,964 36%

GROSS PROFIT 119,423 10,464 64%

SG&A 79,326 6,951 42%

EBITDA 40,097 3,513 21%

Depreciation and amortization 85,596 7,501

Operating Loss (45,499) (3,988)

Comprehensive (Income) Cost of

Financing:

*Interest expense 4,879 428

**Interest income 1,202 105

Exchange (income) loss, net (15,796) (1,385)

Gain on net monetary position (28,389) (2,488)

(38,104) (3,340)

Other income (Expense) (192) (17)

INCOME (LOSS) BEFORE TAXES (7,203) (631)

Provisions for:

Asset Tax 3,170 278

Income Tax & Profit Sharing 464 41

Total Provisions 3,634 319

Impairment loss (56,945) (4,990)

NET INCOME (LOSS) Ps (67,782) $(5,940)

April 1 to

June 30, 2004

Pesos US Dollars %

Voice 170,804 14,968 84%

Data 8,663 759 4%

Wholesale 24,380 2,136 12%

TOTAL REVENUES Ps 203,847 $17,863 100%

Network operating services 52,787 4,626 26%

Technical expenses 19,332 1,694 9%

Installation expenses 1,883 165 1%

Cost of Network Operation 74,002 6,485 36%

GROSS PROFIT 129,845 11,378 64%

SG&A 87,137 7,636 43%

EBITDA 42,708 3,742 21%

Depreciation and amortization 82,015 7,187

Operating Loss (39,307) (3,445)

Comprehensive (Income) Cost of

Financing:

*Interest expense 5,143 451

**Interest income 1,213 106

Exchange (income) loss, net 45,261 3,964

Gain on net monetary position 2,621 230

54,238 4,751

Other income (Expense) 166 15

INCOME (LOSS) BEFORE TAXES (93,711) (8,211)

Provisions for:

Asset Tax 3,152 276

Income Tax & Profit Sharing 543 48

Total Provisions 3,695 324

Impairment loss (582) (51)

NET INCOME (LOSS) Ps (97,988) $(8,586)

NOTES TO FINANCIAL STATEMENTS:

* Interest related to Senior Notes and Vendor Financing

** Interest Income net of bank commissions

Financial statements are reported in period-end pesos as of June 30, 2004 to adjust for the inter-period effect of inflation. For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$11.4116 per US$1.00.