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

CONSOLIDATED BALANCE SHEET

(Thousands of Mexican pesos "Ps" with purchasing power

as of March 31, 2005, and thousands of U.S. Dollars "$")

March 31, 2004

Pesos U.S. Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 53,002 $4,693

Restricted Cash -- --

53,002 4,693

Accounts receivable:

Customers, net of allowance 139,469 12,349

Value added tax refundable -- --

Other sundry debtors 14,761 1,307

154,230 13,656

Inventory 18,898 1,673

Prepaid expenses 63,923 5,660

Total current assets 290,053 25,682

Restricted Cash Long Term -- --

Frecuency rights, Net 100,408 8,890

Telephone network systems &

Equipment, Net 1,596,393 141,345

Preoperating expenses, Net 181,469 16,067

Intangible Assets, Net 395,982 35,061

Other assets 27,566 2,441

Total assets Ps 2,591,871 $229,486

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 9,773 $865

Accrued expenses and

other accounts payable 157,170 13,916

Bank Financing -- --

Customers deposits 2,204 195

Payroll and other taxes payable 56,794 5,029

Total current liabilities 225,941 20,005

LONG-TERM LIABILITIES:

Senior notes, net 2,088,246 184,895

Bank Financing -- --

Notes payable 15,019 1,330

Total liabilities Ps 2,329,206 $206,230

SHAREHOLDERS' EQUITY

Capital stock 1,860,000 164,686

Additional paid-in capital 1,558 138

Accumulated deficit (1,587,569) (140,565)

Net loss for the period (11,324) (1,003)

Total shareholders' equity

(deficit) Ps 262,665 $23,256

Ps 2,591,871 $229,486

December 31, 2004

Pesos U.S. Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 60,720 $5,376

Restricted Cash 5,605 496

66,325 5,872

Accounts receivable:

Customers, net of allowance 117,866 10,436

Value added tax refundable 2,620 232

Other sundry debtors 29,802 2,639

150,288 13,307

Inventory 11,412 1,010

Prepaid expenses 67,560 5,982

Total current assets 295,585 26,171

Restricted Cash Long Term 12,795 1,133

Frecuency rights, Net 95,117 8,422

Telephone network systems &

Equipment, Net 1,741,680 154,212

Preoperating expenses, Net 154,860 13,711

Intangible Assets, Net 369,391 32,706

Other assets 21,101 1,868

Total assets Ps 2,690,529 $238,223

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 8,585 $760

Accrued expenses and

other accounts payable 228,397 20,223

Bank Financing 146,888 13,006

Customers deposits 2,613 231

Payroll and other taxes payable 47,344 4,192

Total current liabilities 433,827 38,412

LONG-TERM LIABILITIES:

Senior notes, net 598,729 53,012

Bank Financing 28,033 2,482

Notes payable 31,465 2,786

Total liabilities Ps 1,092,054 $96,692

SHAREHOLDERS' EQUITY

Capital stock 2,441,863 216,205

Additional paid-in capital 874,335 77,415

Accumulated deficit (1,587,569) (140,565)

Net loss for the period (130,154) (11,524)

Total shareholders' equity

(deficit) Ps 1,598,475 $141,531

Ps 2,690,529 $238,223

March 31, 2005

Pesos U.S. Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 31,885 $2,823

Restricted Cash 5,555 492

37,440 3,315

Accounts receivable:

Customers, net of allowance 127,173 11,260

Value added tax refundable -- --

Other sundry debtors 17,892 1,584

145,065 12,844

Inventory 12,110 1,072

Prepaid expenses 59,932 5,306

Total current assets 254,547 22,537

Restricted Cash Long Term 12,682 1,123

Frecuency rights, Net 93,353 8,266

Telephone network systems &

Equipment, Net 1,767,941 156,536

Preoperating expenses, Net 145,999 12,927

Intangible Assets, Net 349,813 30,973

Other assets 19,746 1,748

Total assets Ps 2,644,081 $234,110

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 17,286 $1,531

Accrued expenses and

other accounts payable 262,672 23,257

Bank Financing 144,785 12,819

Customers deposits 2,458 218

Payroll and other taxes payable 51,367 4,548

Total current liabilities 478,568 42,373

LONG-TERM LIABILITIES:

Senior notes, net 595,185 52,698

Bank Financing 11,175 989

Notes payable 3,995 354

Total liabilities Ps 1,088,923 $96,414

SHAREHOLDERS' EQUITY

Capital stock 2,441,863 216,205

Additional paid-in capital 874,335 77,415

Accumulated deficit (1,717,722) (152,089)

Net loss for the period (43,318) (3,835)

Total shareholders' equity

(deficit) Ps 1,555,158 $137,696

Ps 2,644,081 $234,110

NOTES TO FINANCIAL STATEMENTS:

Financial statements are reported in period-end pesos as of March 31, 2005 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$11.2942 per US$1.00.

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

CONSOLIDATED STATEMENT OF OPERATIONS

YEAR 2004 AND 2005 QUARTERLY PERIODS

(Thousands of Mexican pesos "Ps" with purchasing power

as of March 31, 2005, and thousands of US Dollars "$")

January 1 to

March 31, 2004

Pesos U.S. Dollars %

Voice 165,619 14,664 84%

Data 11,009 975 6%

Wholesale 19,272 1,706 10%

TOTAL REVENUES Ps 195,900 $17,345 100%

Network operating services 49,592 4,391 25%

Technical expenses 19,146 1,695 10%

Installation expenses 2,375 210 1%

Cost of Network Operation 71,113 6,296 36%

GROSS PROFIT 124,787 11,049 64%

SG&A 82,889 7,339 42%

EBITDA 41,898 3,710 21%

Depreciation and amortization 89,440 7,919 --

Operating Loss (47,542) (4,209) --

Comprehensive (Income)

Cost of Financing:

*Interest expense 5,098 451 --

**Interest income 1,255 111 --

Exchange (income) loss, net (16,503) (1,460) --

Gain on net monetary position (29,664) (2,626) --

(39,814) (3,524) --

Other income (Expense) (201) (18) --

INCOME (LOSS) BEFORE TAXES (7,527) (667) --

Provisions for:

Asset Tax 3,312 293 --

Income Tax & Profit Sharing 485 43 --

Total Provisions 3,797 336 --

NET INCOME (LOSS) Ps (11,324) $(1,003) --

October 1 to

December 31, 2004

Pesos U.S. Dollars %

Voice 191,976 16,998 81%

Data 10,341 916 4%

Wholesale 35,902 3,179 15%

TOTAL REVENUES Ps 238,219 $21,093 100%

Network operating services 54,062 4,787 23%

Technical expenses 21,096 1,868 9%

Installation expenses 3,600 319 1%

Cost of Network Operation 78,758 6,974 33%

GROSS PROFIT 159,461 14,119 67%

SG&A 104,421 9,246 44%

EBITDA 55,040 4,873 23%

Depreciation and amortization 85,031 7,529 --

Operating Loss (29,991) (2,656) --

Comprehensive (Income)

Cost of Financing:

*Interest expense 12,693 1,124 --

**Interest income 2,251 199 --

Exchange (income) loss, net (27,223) (2,410) --

Gain on net monetary position (19,413) (1,719) --

(31,692) (2,806) --

Other income (Expense) 998 88 --

INCOME (LOSS) BEFORE TAXES 703 62 --

Provisions for:

Asset Tax 11,634 1,030 --

Income Tax & Profit Sharing 264 23 --

Total Provisions 11,898 1,053 --

NET INCOME (LOSS) Ps (11,195) $(991) --

January 1 to

March 31, 2005

Pesos U.S. Dollars %

Voice 199,884 17,698 81%

Data 11,243 995 5%

Wholesale 35,146 3,112 14%

TOTAL REVENUES Ps 246,273 $21,805 100%

Network operating services 56,826 5,031 23%

Technical expenses 21,792 1,929 9%

Installation expenses 4,964 440 2%

Cost of Network Operation 83,582 7,400 34%

GROSS PROFIT 162,691 14,405 66%

SG&A 104,713 9,271 43%

EBITDA 57,978 5,134 24%

Depreciation and amortization 87,778 7,772 --

Operating Loss (29,800) (2,638) --

Comprehensive (Income)

Cost of Financing:

*Interest expense 15,576 1,379 --

**Interest income (1,123) (99) --

Exchange (income) loss, net 2,170 192 --

Gain on net monetary position (6,561) (581) --

10,062 891 --

Other income (Expense) 71 6 --

INCOME (LOSS) BEFORE TAXES (39,933) (3,535) --

Provisions for:

Asset Tax 3,172 281 --

Income Tax & Profit Sharing 213 19 --

Total Provisions 3,385 300 --

NET INCOME (LOSS) Ps (43,318) $(3,835) --

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 March 31, 2005 to adjust for the inter-period effect of inflation.

All Peso amounts were converted to U.S. dollars at the exchange rate of Ps$11.2942 per US$1.00.