MAXCOM TELECOMUNICACIONES, S.A. DE C.V. CONSOLIDATED BALANCE SHEET (Thousands of Mexican pesos "Ps" with purchasing power as of September 30, 2005 and thousands of US Dollars "$") September 30, 2004 Pesos US Dollars ASSETS CURRENT ASSETS: Cash and cash equivalents Ps 42,984 $3,962 Restricted Cash - - 42,984 3,962 Accounts receivable: Customers, net of allowance 146,973 13,547 Other sundry debtors 23,145 2,133 170,118 15,680 Inventory 16,519 1,523 Prepaid expenses 63,686 5,870 Total current assets 293,307 27,035 Restricted Cash Long Term - - Frequency rights, Net 97,538 8,990 Telephone network systems & Equipment, Net 1,672,299 154,137 Preoperating expenses, Net 164,828 15,192 Intangible Assets, Net 369,097 34,020 Other assets 23,168 2,135 Total assets Ps 2,620,237 $241,509 LIABILITIES CURRENT LIABILITIES: Interest Payable Ps 9,879 $911 Accrued expenses and other accounts payable 201,866 18,606 Bank Financing 74,794 6,894 Commercial paper - - Customers deposits 2,017 186 Payroll and other taxes payable 50,995 4,700 Total current liabilities 339,551 31,297 LONG-TERM LIABILITIES: Senior notes, net 2,111,232 194,593 Bank Financing - - Notes payable 13,359 1,231 Hedging Valuation - - Total liabilities Ps 2,464,142 $227,121 SHAREHOLDERS' EQUITY Capital stock 1,872,641 172,602 Additional paid-in capital 1,568 145 Accumulated deficit (1,598,348) (147,320) Net loss for the period (119,766) (11,039) Other Comprehensive Income - - Minority interest - - Total shareholders' equity (deficit) Ps 156,095 $14,388 Ps 2,620,237 $241,509 June 30, 2005 Pesos US Dollars ASSETS CURRENT ASSETS: Cash and cash equivalents Ps 35,603 $3,282 Restricted Cash 9,787 902 45,390 4,184 Accounts receivable: Customers, net of allowance 148,806 13,715 Other sundry debtors 23,392 2,156 172,198 15,871 Inventory 13,115 1,209 Prepaid expenses 60,586 5,584 Total current assets 291,289 26,848 Restricted Cash Long Term 16,963 1,563 Frequency rights, Net 92,211 8,499 Telephone network systems & Equipment, Net 1,781,962 164,243 Preoperating expenses, Net 138,069 12,726 Intangible Assets, Net 345,237 31,821 Other assets 19,032 1,754 Total assets Ps 2,684,763 $247,454 LIABILITIES CURRENT LIABILITIES: Interest Payable Ps 9,590 $884 Accrued expenses and other accounts payable 229,349 21,139 Bank Financing 189,582 17,474 Commercial paper - - Customers deposits 2,542 234 Payroll and other taxes payable 45,350 4,180 Total current liabilities 476,413 43,911 LONG-TERM LIABILITIES: Senior notes, net 575,359 53,031 Bank Financing 41,948 3,866 Notes payable 37,848 3,488 Hedging Valuation - - Total liabilities Ps 1,131,568 $104,296 SHAREHOLDERS' EQUITY Capital stock 2,458,443 226,595 Additional paid-in capital 880,272 81,135 Accumulated deficit (1,729,385) (159,398) Net loss for the period (56,135) (5,174) Other Comprehensive Income - - Minority interest - - Total shareholders' equity (deficit) Ps 1,553,195 $143,158 Ps 2,684,763 $247,454 September 30, 2005 Pesos US Dollars ASSETS CURRENT ASSETS: Cash and cash equivalents Ps 58,217 $5,366 Restricted Cash 9,791 902 68,008 6,268 Accounts receivable: Customers, net of allowance 166,489 15,345 Other sundry debtors 26,468 2,439 192,957 17,784 Inventory 15,313 1,411 Prepaid expenses 72,553 6,687 Total current assets 348,831 32,150 Restricted Cash Long Term 20,645 1,903 Frequency rights, Net 90,436 8,335 Telephone network systems & Equipment, Net 1,849,537 170,478 Preoperating expenses, Net 129,148 11,904 Intangible Assets, Net 325,355 29,988 Other assets 14,944 1,377 Total assets Ps 2,778,896 $256,135 LIABILITIES CURRENT LIABILITIES: Interest Payable Ps 21,647 $1,995 Accrued expenses and other accounts payable 264,655 24,394 Bank Financing 137,944 12,714 Commercial paper 150,000 13,826 Customers deposits 2,718 251 Payroll and other taxes payable 146,612 13,513 Total current liabilities 723,576 66,693 LONG-TERM LIABILITIES: Senior notes, net 571,993 52,721 Bank Financing 15,152 1,397 Notes payable 49,407 4,554 Hedging Valuation 8,588 792 Total liabilities Ps 1,368,716 $126,157 SHAREHOLDERS' EQUITY Capital stock 2,697,951 248,671 Additional paid-in capital 1,629 151 Accumulated deficit (1,090,289) (100,492) Net loss for the period (196,969) (18,155) Other Comprehensive Income (2,182) (201) Minority interest 40 4 Total shareholders' equity (deficit) Ps 1,410,180 $129,978 Ps 2,778,896 $256,135 NOTES TO FINANCIAL STATEMENTS: Financial statements are reported in period-end pesos as of September 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$10.8495 per US$1.00. MAXCOM TELECOMUNICACIONES, S.A. DE C.V. CONSOLIDATED STATEMENT OF OPERATIONS YEAR 2005 AND 2004 QUARTERLY PERIODS (Thousands of Mexican pesos "Ps" with purchasing power as of September 30, 2005 and thousands of US Dollars "$") July 1 to September 30, 2004 Pesos US Dollars % Voice 187,170 17,251 81% Data 11,839 1,091 5% Wholesale 31,421 2,896 14% TOTAL REVENUES Ps 230,430 $21,238 100% Network operating services 57,805 5,328 25% Technical expenses 21,257 1,959 9% Installation expenses 3,443 317 1% Cost of Network Operation 82,505 7,604 36% GROSS PROFIT 147,925 13,634 64% SG&A 100,064 9,223 43% EBITDA 47,861 4,411 21% Depreciation and amortization 75,348 6,945 Operating Loss (27,487) (2,534) Comprehensive (Income) Cost of Financing: *Interest expense 5,102 470 **Interest income 4,844 447 Exchange (income) loss, net (2,170) (201) Gain on net monetary position (39,773) (3,666) (31,997) (2,950) Other (income) expense (172) (16) INCOME (LOSS) BEFORE TAXES 4,682 432 Provisions for: Asset Tax 8,999 829 Income Tax & Profit Sharing (210) (19) Total Provisions 8,789 810 NET INCOME (LOSS) Ps (4,107) $(378) April 1 to June 30, 2005 Pesos US Dollars % Voice 223,442 20,595 80% Data 13,108 1,208 5% Wholesale 41,137 3,792 15% TOTAL REVENUES Ps 277,687 $25,595 100% Network operating services 65,499 6,037 24% Technical expenses 23,229 2,141 8% Installation expenses 4,080 376 1% Cost of Network Operation 92,808 8,554 33% GROSS PROFIT 184,879 17,041 67% SG&A 114,518 10,555 42% EBITDA 70,361 6,486 25% Depreciation and amortization 89,798 8,277 Operating Loss (19,437) (1,791) Comprehensive (Income) Cost of Financing: *Interest expense 14,895 1,373 **Interest income 2,825 260 Exchange (income) loss, net (26,851) (2,475) Gain on net monetary position 28 3 (9,103) (839) Other (income) expense (1,136) (105) INCOME (LOSS) BEFORE TAXES (9,198) (847) Provisions for: Asset Tax 3,175 293 Income Tax & Profit Sharing 150 14 Total Provisions 3,325 307 NET INCOME (LOSS) Ps (12,523) $(1,154) July 1 to September 30, 2005 Pesos US Dollars % Voice 244,667 22,551 81% Data 12,875 1,187 4% Wholesale 44,041 4,059 15% TOTAL REVENUES Ps 301,583 $27,797 100% Network operating services 72,010 6,637 24% Technical expenses 24,548 2,263 8% Installation expenses 3,045 281 1% Cost of Network Operation 99,603 9,181 33% GROSS PROFIT 201,980 18,616 67% SG&A 123,177 11,353 41% EBITDA 78,803 7,263 26% Depreciation and amortization 91,031 8,390 Operating Loss (12,228) (1,127) Comprehensive (Income) Cost of Financing: *Interest expense 24,545 2,262 **Interest income 5,966 550 Exchange (income) loss, net 6,987 645 Gain on net monetary position (5,323) (491) 32,175 2,966 Other (income) expense (439) (40) INCOME (LOSS) BEFORE TAXES (43,964) (4,053) Provisions for: Asset Tax 3,162 291 Income Tax & Profit Sharing 93,708 8,637 Total Provisions 96,870 8,928 NET INCOME (LOSS) Ps (140,834) $(12,981) 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 September 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$10.8495 per US$1.00.