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

CONSOLIDATED BALANCE SHEET

(Thousands of Mexican pesos "Ps" with purchasing power as of June 30, 2005 and

thousands of US Dollars "$")

June 30, 2004

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 41,158 $ 3,796

Restricted Cash - -

41,158 3,796

Accounts receivable:

Customers, net of allowance 142,319 13,126

Other sundry debtors 18,969 1,749

161,288 14,875

Inventory 17,432 1,608

Prepaid expenses 65,392 6,031

Total current assets 285,270 26,310

Restricted Cash Long Term - -

Frequency rights, Net 98,647 9,098

Telephone network systems &

Equipment, Net 1,598,318 147,407

Preoperating expenses, Net 172,685 15,926

Intangible Assets, Net 378,171 34,878

Other assets 27,016 2,492

Total assets Ps 2,560,107 $ 236,111

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 4,993 $ 460

Accrued expenses and other accounts

payable 172,491 15,908

Bank Financing 23,298 2,149

Customers deposits 2,251 208

Payroll and other taxes payable 54,607 5,036

Total current liabilities 257,640 23,761

LONG-TERM LIABILITIES:

Senior notes, net 2,133,790 196,793

Bank Financing - -

Notes payable 9,551 881

Total liabilities Ps 2,400,981 $ 221,435

SHAREHOLDERS' EQUITY

Capital stock 1,860,061 171,548

Additional paid-in capital 1,558 144

Accumulated deficit (1,587,611) (146,421)

Net loss for the period (114,882) (10,595)

Total shareholders' equity

(deficit) Ps 159,126 $ 14,676

Ps 2,560,107 $ 236,111

March 31, 2005

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 31,885 $ 2,941

Restricted Cash 5,555 512

37,440 3,453

Accounts receivable:

Customers, net of allowance 127,176 11,729

Other sundry debtors 17,893 1,650

145,069 13,379

Inventory 12,110 1,117

Prepaid expenses 59,934 5,528

Total current assets 254,553 23,477

Restricted Cash Long Term 12,682 1,170

Frequency rights, Net 93,356 8,610

Telephone network systems &

Equipment, Net 1,767,988 163,057

Preoperating expenses, Net 146,003 13,465

Intangible Assets, Net 349,822 32,263

Other assets 19,746 1,821

Total assets Ps 2,644,150 $ 243,863

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 17,287 $ 1,594

Accrued expenses and other accounts

payable 262,679 24,226

Bank Financing 144,788 13,353

Customers deposits 2,458 227

Payroll and other taxes payable 51,368 4,738

Total current liabilities 478,580 44,138

LONG-TERM LIABILITIES:

Senior notes, net 595,201 54,894

Bank Financing 11,175 1,031

Notes payable 3,995 368

Total liabilities Ps 1,088,951 $ 100,431

SHAREHOLDERS' EQUITY

Capital stock 2,441,928 225,212

Additional paid-in capital 874,358 80,640

Accumulated deficit (1,717,768) (158,425)

Net loss for the period (43,319) (3,995)

Total shareholders' equity

(deficit) Ps 1,555,199 $ 143,432

Ps 2,644,150 $ 243,863

June 30, 2005

Pesos US Dollars

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Ps 35,364 $ 3,261

Restricted Cash 9,722 897

45,086 4,158

Accounts receivable:

Customers, net of allowance 147,807 13,632

Other sundry debtors 23,235 2,143

171,042 15,775

Inventory 13,027 1,201

Prepaid expenses 60,179 5,550

Total current assets 289,334 26,684

Restricted Cash Long Term 16,849 1,554

Frequency rights, Net 91,592 8,447

Telephone network systems &

Equipment, Net 1,769,988 163,242

Preoperating expenses, Net 137,141 12,648

Intangible Assets, Net 342,918 31,626

Other assets 18,904 1,744

Total assets Ps 2,666,726 $ 245,945

LIABILITIES

CURRENT LIABILITIES:

Interest Payable Ps 9,526 $ 879

Accrued expenses and other accounts

payable 227,808 21,010

Bank Financing 188,308 17,367

Customers deposits 2,525 233

Payroll and other taxes payable 45,045 4,154

Total current liabilities 473,212 43,643

LONG-TERM LIABILITIES:

Senior notes, net 571,494 52,707

Bank Financing 41,667 3,843

Notes payable 37,593 3,467

Total liabilities Ps 1,123,966 $103,660

SHAREHOLDERS' EQUITY

Capital stock 2,441,928 225,212

Additional paid-in capital 874,358 80,640

Accumulated deficit (1,717,768) (158,425)

Net loss for the period (55,758) (5,142)

Total shareholders' equity

(deficit) Ps 1,542,760 $142,285

Ps 2,666,726 $245,945

NOTES TO FINANCIAL STATEMENTS:

Financial statements are reported in period-end pesos as of June 30, 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$10.8428 per US$1.00.

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

CONSOLIDATED STATEMENT OF OPERATIONS

YEAR 2005 AND 2004 QUARTERLY PERIODS

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

2005 and thousands of US Dollars "$")

April 1 to June 30, 2004

Pesos US Dollars %

Voice 178,427 16,456 84%

Data 9,050 835 4%

Wholesale 25,485 2,350 12%

TOTAL REVENUES Ps 212,962 $19,641 100%

Network operating services 55,148 5,086 26%

Technical expenses 20,196 1,863 9%

Installation expenses 1,965 181 1%

Cost of Network Operation 77,309 7,130 36%

GROSS PROFIT 135,653 12,511 64%

SG&A 91,033 8,396 43%

EBITDA 44,620 4,115 21%

Depreciation and amortization 88,560 8,168

Operating Loss (43,940) (4,053)

Comprehensive (Income) Cost of Financing:

*Interest expense 5,373 496

**Interest income 1,267 117

Exchange (income) loss, net 47,295 4,359

Gain on net monetary position 1,645 152

55,580 5,124

Other income (Expense) 174 16

INCOME (LOSS) BEFORE TAXES (99,694) (9,193)

Provisions for:

Asset Tax 3,293 304

Income Tax & Profit Sharing 567 52

Total Provisions 3,860 356

NET INCOME (LOSS) Ps (103,554) $(9,549)

January 1 to March 31, 2005

Pesos US Dollars %

Voice 199,889 18,435 81%

Data 11,243 1,037 5%

Wholesale 35,147 3,241 14%

TOTAL REVENUES Ps 246,279 $22,713 100%

Network operating services 56,827 5,241 23%

Technical expenses 21,793 2,010 9%

Installation expenses 4,964 458 2%

Cost of Network Operation 83,584 7,709 34%

GROSS PROFIT 162,695 15,004 66%

SG&A 104,715 9,658 43%

EBITDA 57,980 5,346 23%

Depreciation and amortization 87,780 8,096

Operating Loss (29,800) (2,750)

Comprehensive (Income) Cost of Financing:

*Interest expense 13,001 1,199

**Interest income 1,453 134

Exchange (income) loss, net 2,170 200

Gain on net monetary position (6,561) (608)

10,063 925

Other income (Expense) 71 7

INCOME (LOSS) BEFORE TAXES (39,934) (3,682)

Provisions for:

Asset Tax 3,172 293

Income Tax & Profit Sharing 213 20

Total Provisions 3,385 313

NET INCOME (LOSS) Ps (43,319) $(3,995)

April 1 to June 30, 2005

Pesos US Dollars %

Voice 221,941 20,469 80%

Data 13,019 1,201 5%

Wholesale 40,860 3,768 15%

TOTAL REVENUES Ps 275,820 $25,438 100%

Network operating services 65,059 6,000 24%

Technical expenses 23,072 2,128 8%

Installation expenses 4,052 374 1%

Cost of Network Operation 92,183 8,502 33%

GROSS PROFIT 183,637 16,936 66%

SG&A 113,749 10,491 41%

EBITDA 69,888 6,445 25%

Depreciation and amortization 89,195 8,226

Operating Loss (19,307) (1,781)

Comprehensive (Income) Cost of Financing:

*Interest expense 14,795 1,364

**Interest income 2,806 259

Exchange (income) loss, net (26,672) (2,461)

Gain on net monetary position 28 3

(9,043) (835)

Other income (Expense) (1,128) (104)

INCOME (LOSS) BEFORE TAXES (9,136) (842)

Provisions for:

Asset Tax 3,154 291

Income Tax & Profit Sharing 149 14

Total Provisions 3,303 305

NET INCOME (LOSS) Ps (12,439) $(1,147)

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, 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$10.8428 per US$1.00.