NII HOLDINGS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
          FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2005 AND 2004
            (in millions, except per share amounts, and unaudited)
 
                              Six Months Ended        Three Months Ended
                                  June 30,                  June 30,
                             2005          2004        2005         2004
    Operating revenues
     Service and other
      revenues              $745.5       $563.4       $391.3        $288.3
     Digital handset and
      accessory revenues      35.4         28.2         19.4          15.6
                             780.9        591.6        410.7         303.9
 
    Operating expenses
     Cost of service
      (exclusive of
      depreciation included
      below)                 194.3        149.5         97.9          77.4
     Cost of digital handset
      and accessory sales    110.6         98.5         56.3          51.2
     Selling, general and
      administrative         257.2        180.7        138.0          93.6
     Depreciation             53.1         40.6         28.3          20.6
     Amortization              2.8          7.3          1.5           3.4
                             618.0        476.6        322.0         246.2
    Operating income         162.9        115.0         88.7          57.7
    Other income (expense)
     Interest expense        (26.2)       (26.9)       (13.3)        (10.9)
     Interest income          10.1          5.4          5.6           3.2
     Debt conversion expense  (8.9)           -         (8.9)            -
     Loss on early
      extinguishment of
      debt, net                  -        (79.3)           -             -
     Foreign currency
      transaction gains, net   2.1          8.2          0.1           1.5
     Other (expense) income,
      net                     (3.6)         1.8         (1.7)          2.8
                             (26.5)       (90.8)       (18.2)         (3.4)
 
    Income before income tax
     provision and cumulative
     effect of change in
     accounting principle    136.4         24.2         70.5          54.3
    Income tax provision     (60.8)       (47.1)       (40.0)        (24.5)
    Income (loss) before
     cumulative effect of
     change in accounting
     principle                75.6        (22.9)        30.5          29.8
    Cumulative effect of
     change in accounting
     principle, net of income
     taxes                       -          0.9            -             -
    Net income (loss)        $75.6       $(22.0)       $30.5         $29.8
 
    Income (loss) before
     cumulative effect of
     change in accounting
     principle per common
     share, basic            $1.07       $(0.33)       $0.43         $0.43
    Cumulative effect of
     change in accounting
     principle per common
     share, basic                -         0.01            -             -
    Net income (loss) per
     common share, basic     $1.07       $(0.32)       $0.43         $0.43
    Income (loss) before
     cumulative effect of
     change in accounting
     principle per common
     share, diluted          $0.96       $(0.33)       $0.40         $0.40
    Cumulative effect of
     change in accounting
     principle per common
     share, diluted              -         0.01            -             -
    Net income (loss) per
     common share, diluted   $0.96       $(0.32)       $0.40         $0.40
 
    Weighted average number
     of common shares
     outstanding, basic         71           69           71            70
    Weighted average number
     of common shares
     outstanding, diluted       86           69           86            85
 
 
                       CONSOLIDATED BALANCE SHEET DATA
                                (in millions)
 
 
                                                    June 30,     December 31,
                                                      2005            2004
                                                  (unaudited)
    Cash, cash equivalents and short-term
     investments                                      $555.8         $369.4
    Accounts receivable, less allowance for
     doubtful accounts of $11.3 and $8.1               183.8          160.7
    Property, plant and equipment, net                 731.7          558.2
    Intangible assets, net                              76.6           68.0
    Total assets                                     1,960.4        1,491.3
    Long-term debt, including current portion          781.3          603.5
    Total liabilities                                1,325.2        1,069.3
    Stockholders' equity                               635.2          422.0
 
 
 
                     NII HOLDINGS, INC. AND SUBSIDIARIES
                        OPERATING RESULTS AND METRICS
          FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2005 AND 2004
                                 (UNAUDITED)
 
 
                              NII Holdings, Inc.
                          (subscribers in thousands)
 
                                                        Three Months Ended
                                                             June 30,
                                                      2005           2004
    Total digital subscribers (as of June 30)        2,120.4        1,664.3
     Net subscriber additions                          135.3          111.2
     Churn (%)                                          1.8%           1.8%
 
    Average monthly revenue per handset/unit
     in service (ARPU)(1)                                $58            $55
 
    Cost per gross add (CPGA) (1)                       $339           $334
 
 
 
                                Nextel Mexico
  (dollars in millions, except ARPU and CPGA, and subscribers in thousands)
 
                               Six Months Ended      Three Months Ended
                                   June 30,                  June 30,
                              2005         2004         2005          2004
    Operating revenues
     Service and other
      revenues              $445.9       $353.8        $233.0       $180.4
     Digital handset and
      accessory revenues      11.0         10.3          5.9           5.2
                             456.9        364.1        238.9         185.6
 
    Operating expenses
     Cost of service          79.9         63.1         42.6          32.6
     Cost of digital handset
      and accessory sales     56.1         51.3         27.5          26.2
     Selling, general and
      administrative         131.7         96.6         71.0          50.0
     Depreciation and
      amortization            31.1         34.6         15.9          17.1
                             298.8        245.6        157.0         125.9
 
    Operating income        $158.1       $118.5        $81.9         $59.7
 
    Total digital subscribers
    (as of June 30)                                    937.1         753.1
     Net subscriber
      additions                                         54.5          50.2
     Churn (%)                                          1.8%          1.7%
 
    ARPU (1)                                             $79           $76
 
    CPGA (1)                                            $485          $458
 
 
 
                                Nextel Brazil
  (dollars in millions, except ARPU and CPGA, and subscribers in thousands)
 
                                 Six Months Ended        Three Months Ended
                                      June 30,                June 30,
                                   2005       2004        2005         2004
 
    Operating revenues
     Service and other revenues   $132.9     $84.9       $70.7        $43.1
     Digital handset and
      accessory revenues            11.4       8.9         6.2          5.5
                                   144.3      93.8        76.9         48.6
 
    Operating expenses
     Cost of service                56.6      39.2        25.9         20.5
     Cost of digital handset
      and accessory sales           26.2      25.0        13.4         14.0
 
     Selling, general and
      administrative                47.8      22.3        26.9          9.6
     Depreciation and
      amortization                  12.5       5.5         7.1          2.9
                                   143.1      92.0        73.3         47.0
 
    Operating income                $1.2      $1.8        $3.6         $1.6
 
    Total digital subscribers
    (as of June 30)                                      536.2        424.1
     Net subscriber additions                             32.4         23.9
     Churn (%)                                            2.1%         2.3%
 
    ARPU (1)                                               $41          $32
 
    CPGA (1)                                              $254         $245
 
 
 
                               Nextel Argentina
  (dollars in millions, except ARPU and CPGA, and subscribers in thousands)
 
                              Six Months Ended          Three Months Ended
                                   June 30,                   June 30,
                              2005         2004         2005          2004
    Operating revenues
     Service and other
      revenues              $114.7        $78.9        $60.9         $41.7
     Digital handset and
      accessory revenues      10.5          8.0          5.9           4.5
                             125.2         86.9         66.8          46.2
 
    Operating expenses
     Cost of service          40.3         29.6         20.9          15.7
     Cost of digital handset
      and accessory sales     19.4         15.0         10.8           7.8
     Selling, general and
      administrative          31.6         22.2         16.9          11.7
     Depreciation and
      amortization             7.7          5.0          4.4           2.5
                              99.0         71.8         53.0          37.7
 
    Operating income         $26.2        $15.1        $13.8          $8.5
 
    Total digital subscribers
    (as of June 30)                                    432.3         322.5
     Net subscriber additions                           31.7          26.4
     Churn (%)                                          1.2%          1.1%
 
    ARPU (1)                                             $42           $40
 
    CPGA (1)                                            $184          $185
 
 
 
                                 Nextel Peru
  (dollars in millions, except ARPU and CPGA, and subscribers in thousands)
 
                               Six Months Ended        Three Months Ended
                                    June 30,                 June 30,
                              2005         2004         2005         2004
    Operating revenues
     Service and other
      revenues               $51.4        $45.3        $26.4         $22.8
    Digital handset and
     accessory revenues        2.4          1.0          1.4           0.5
                              53.8         46.3         27.8          23.3
 
    Operating expenses
     Cost of service          16.9         17.1          8.2           8.3
     Cost of digital handset
      and accessory sales      8.7          7.2          4.6           3.2
     Selling, general and
      administrative          16.4         14.0          8.5           7.3
     Depreciation and
      amortization             4.0          2.6          2.1           1.4
                              46.0         40.9         23.4          20.2
 
    Operating income          $7.8         $5.4         $4.4          $3.1
 
    Total digital subscribers
    (as of June 30)                                    214.8         164.6
     Net subscriber additions                           16.7          10.7
     Churn (%)                                          1.9%          2.2%
 
    ARPU (1)                                             $40           $45
 
    CPGA (1)                                            $212          $245
 
    (1) For information regarding ARPU and CPGA, see "Non-GAAP Reconciliations
for the Six and Three Months Ended June 30, 2005 and 2004" included in this
release.
 
 
 
                           NON-GAAP RECONCILIATIONS
          FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2005 AND 2004
                                 (UNAUDITED)
 
    Operating Income Before Depreciation and Amortization

Consolidated operating income before depreciation and amortization, or OIBDA, represents operating income before depreciation and amortization expense. Consolidated OIBDA is not a measurement under accounting principles generally accepted in the United States, may not be similar to consolidated OIBDA measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe that consolidated OIBDA provides useful information to investors because it is an indicator of operating performance, especially in a capital intensive industry such as ours, since it excludes items that are not directly attributable to ongoing business operations. Our consolidated OIBDA calculations are commonly used as some of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. Consolidated OIBDA can be reconciled to our consolidated statements of operations as follows (in millions):

NII Holdings, Inc.
 
                                 Six Months Ended        Three Months Ended
                                      June 30,                 June 30,
                                  2005       2004         2005         2004
    Consolidated operating
     income                      $162.9     $115.0       $88.7         $57.7
    Consolidated depreciation      53.1       40.628.3          20.6
    Consolidated amortization       2.8        7.3         1.5           3.4
    Consolidated operating
     income before depreciation
     and amortization             218.8     $162.9      $118.5         $81.7
 
 
 
                                                   Guidance   Revised Guidance
                                                   Estimate       Estimate
                                                    For the        For the
                                                   Year Ended     Year Ended
                                                  December 31,   December 31,
                                                      2005            2005
    Consolidated operating income                     $329.0         $346.6
    Consolidated depreciation                          116.0          122.5
    Consolidated amortization                            5.0            5.9
    Consolidated operating income before
     depreciation and amortization                    $450.0         $475.0
 
 
    Average Monthly Revenue Per Handset/Unit in Service (ARPU)

Average monthly revenue per handset/unit in service, or ARPU, is an industry term that measures service revenues, which we refer to as subscriber revenues, per period from our customers divided by the weighted average number of handsets in commercial service during that period. ARPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to ARPU measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers. Other revenue includes revenues for such services as roaming, service and repair, cancellation fees, analog and other. ARPU can be calculated and reconciled to our consolidated statement of operations as follows (in millions, except ARPU):

NII Holdings, Inc.
                                                        Three Months Ended
                                                              June 30,
                                                       2005           2004
    Consolidated service and other revenues           $391.3         $288.3
    Less: consolidated analog revenues                  (2.3)          (2.3)
    Less: consolidated other revenues                  (33.5)         (22.3)
 
    Total consolidated subscriber revenues            $355.5         $263.7
 
    ARPU calculated with subscriber revenues             $58            $55
 
    ARPU calculated with service and other revenues      $64            $60
 
 
 
                                Nextel Mexico
                                                         Three Months Ended
                                                               June 30,
                                                       2005           2004
    Service and other revenues                        $233.0         $180.4
    Less: analog revenues                               (1.2)          (1.3)
    Less: other revenues                               (17.1)         (12.7)
    Total subscriber revenues                         $214.7         $166.4
 
    ARPU calculated with subscriber revenues             $79            $76
 
    ARPU calculated with service and other revenues      $86            $83
 
 
 
                                Nextel Brazil
                                                         Three Months Ended
                                                              June 30,
                                                        2005           2004
    Service and other revenues                         $70.7          $43.1
    Less: analog revenues                               (0.6)          (0.6)
    Less: other revenues                                (6.7)          (3.1)
    Total subscriber revenues                          $63.4          $39.4
 
    ARPU calculated with subscriber revenues             $41            $32
 
    ARPU calculated with service and other revenues      $45            $35
 
 
 
                               Nextel Argentina
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Service and other revenues                         $60.9          $41.7
    Less: other revenues                                (8.2)          (5.1)
    Total subscriber revenues                          $52.7          $36.6
 
    ARPU calculated with subscriber revenues             $42            $40
 
    ARPU calculated with service and other revenues      $49            $45
 
 
 
                                 Nextel Peru
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Service and other revenues                         $26.4          $22.8
    Less: other revenues                                (1.7)          (1.5)
    Total subscriber revenues                          $24.7          $21.3
 
    ARPU calculated with subscriber revenues             $40            $45
 
    ARPU calculated with service and other revenues      $43            $48
 
 
    Cost per Gross Add (CPGA)

Cost per gross add, or CPGA, is an industry term that is calculated by dividing our selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by our new subscribers during the period, or gross adds. CPGA is not a measurement under accounting principles generally accepted in the United States, may not be similar to CPGA measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe CPGA is a measure of the relative cost of customer acquisition. CPGA can be calculated and reconciled to our consolidated statements of operations as follows (in millions, except CPGA):

NII Holdings, Inc.
                                                         Three Months Ended
                                                               June 30,
                                                        2005           2004
    Consolidated digital handset and accessory
     revenues                                          $19.3          $15.7
    Less: consolidated cost of handset and
     accessory sales                                    56.3           51.2
       Consolidated handset subsidy costs               37.0           35.5
    Consolidated selling and marketing                  54.2           40.1
    Costs per statement of operations                   91.2           75.6
    Less: consolidated costs unrelated to initial
     customer acquisition                               (8.8)          (9.4)
       Customer acquisition costs                     $ 82.4          $66.2
 
    Cost per Gross Add                                  $339           $334
 
 
 
                                Nextel Mexico
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Digital handset and accessory revenues              $5.9           $5.2
    Less: cost of handset and accessory sales           27.5           26.2
      Handset subsidy costs                             21.6           21.0
    Selling and marketing                               33.8           24.9
    Costs per statement of operations                   55.4           45.9
    Less: costs unrelated to initial customer
     acquisition                                        (5.2)          (5.6)
      Customer acquisition costs                       $50.2          $40.3
 
    Cost per Gross Add                                  $485           $458
 
 
 
                                Nextel Brazil
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Digital handset and accessory revenues              $6.2           $5.5
    Less: cost of handset and accessory sales           13.4           14.0
      Handset subsidy costs                              7.2            8.5
    Selling and marketing                               10.4            7.3
    Costs per statement of operations                   17.6           15.8
    Less: costs unrelated to initial customer
     acquisition                                        (1.2)          (2.9)
      Customer acquisition costs                       $16.4          $12.9
 
    Cost per Gross Add                                  $254           $245
 
 
 
                               Nextel Argentina
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Digital handset and accessory revenues              $5.9           $4.5
    Less: cost of handset and accessory sales           10.8            7.9
      Handset subsidy costs                              4.9            3.4
    Selling and marketing                                5.4            3.8
    Costs per statement of operations                   10.3            7.2
    Less: costs unrelated to initial customer
     acquisition                                        (1.7)          (0.4)
      Customer acquisition costs                        $8.6           $6.8
 
    Cost per Gross Add                                  $184           $185
 
 
                                 Nextel Peru
                                                        Three Months Ended
                                                              June 30,
                                                        2005           2004
    Digital handset and accessory revenues              $1.4           $0.5
    Less: cost of handset and accessory sales            4.6            3.1
      Handset subsidy costs                              3.2            2.6
    Selling and marketing                                3.4            3.1
    Costs per statement of operations                    6.6            5.7
    Less: costs unrelated to initial customer
     acquisition                                        (0.6)          (0.5)
      Customer acquisition costs                        $6.0           $5.2
 
    Cost per Gross Add                                  $212           $245
 
 
 
    Net Debt

Net debt represents total long-term debt less cash, cash equivalents and short-term investments. Net debt to consolidated operating income before depreciation and amortization represents net debt divided by consolidated operating income before depreciation and amortization. Net debt is not a measurement under accounting principles generally accepted in the United States, may not be similar to net debt measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our balance sheets. We believe that net debt and net debt to consolidated operating income before depreciation and amortization provide useful information concerning our liquidity and leverage. Net debt as of June 30, 2005 can be calculated as follows (in millions):

Total long-term debt                              $768.9
    Less: cash, cash equivalents and
     short-term investments                            555.8
    Net debt                                          $213.1

Net debt to revised consolidated OIBDA guidance and net debt to revised consolidated operating income guidance for the year ended December 31, 2005 are as follows:

Net debt to revised consolidated operating income
     before depreciation and amortization guidance       0.4
 
    Net debt to revised consolidated operating income
     guidance                                            0.6
 
 
    Cash, Cash Equivalents and Short-Term Investments

Consolidated cash, cash equivalents and short-term investments represents total cash and cash equivalents plus short-term investments. Consolidated cash, cash equivalents and short-term investments is not a measurement under accounting principles generally accepted in the United States, may not be similar to consolidated cash, cash equivalents and short-term investment measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our balance sheets. We believe that consolidated cash, cash equivalents and short-term investments provides useful information concerning our liquidity. Consolidated cash, cash equivalents and short-term investments as of June 30, 2005 can be calculated as follows (in millions):

Consolidated cash and cash
     equivalents                                      $544.9
    Plus: short-term investments                        10.9
    Consolidated cash, cash equivalents
     and short-term investments                       $555.8