SATELITES MEXICANOS, S.A. DE C.V.
 (Subsidiary of Servicios Corporativos Satelitales, S.A. de C.V.)
 
  BALANCE SHEET
 AS OF DECEMBER 31, 2002 and 2001
 (Amounts in thousands of U.S. dollars)
 
 
 December 31, December 31,
 2002 2001
 
 Assets
 Current assets:
 Cash and cash equivalents $26,822 $26,194
 Restricted and segregated cash 6,817 155,496
 Accounts receivable, net 5,597 2,042
 Prepaid insurance  6,440 7,414
 Due from related parties 4,796 7,200
 Deferred income taxes 1,385 2,161
 Total current assets 51,857 200,507
 Satellites and equipment, net 289,637 320,725
 Construction in process - Satmex 6 214,903 95,092
 Concessions, net 450,616 463,521
  Prepaid insurance, non current - 3,172
 Deferred financing costs, net 3,671 5,929
 Other assets 410 332
 Total assets  $1,011,094 $1,089,278
 
 Liabilities and Stockholders'
 Equity
 Current liabilities:
 Current maturities of long-term
 debt $1,000 $13,626
  Accounts payable 4,942 4,227
 Accrued expenses 6,406 18,759
 Interest payable 14,196 14,196
 Due to related parties 2,231 4,370
 Deferred revenue - customers 60 39
 Deferred revenue - Mexican
 government 2,200 2,200
 Total current liabilities 31,035 57,417
 Accrued expenses, non current 3,276 4,337
 Deferred revenue - Mexican
 government 74,535 76,735
 Deferred income taxes 10,194 19,807
 Long-term debt 523,374 542,374
 Total liabilities 642,414 700,670
 
 Commitments and contingencies
 Stockholders' equity:
 Common stock 385,054 383,547
 Preferred stock 31,886 31,886
 Accumulated deficit (48,260) (26,825)
 Total stockholders' equity 368,680 388,608
 Total liabilities and
 stockholders' equity $1,011,094 $1,089,278
 
 
 SATELITES MEXICANOS, S.A. DE C.V.
 (Subsidiary of Servicios Corporativos Satelitales, S.A. de C.V.)
 
 STATEMENTS OF OPERATIONS
 (Amounts in thousands of U.S. dollars)
 
 Three months ended 12 months ended
 December 31, December 31,
 2002 2001 2002 2001
 Service revenue $22,578 $30,434 $85,011 $128,044
 Operating expenses:
 Satellite operations 3,716 4,887 17,059 19,768
 Selling and administrative
 expenses 7,321 6,181 20,824 22,638
 License and management fees 304 527 1,148 3,291
 Depreciation expense and
 amortization of concessions 11,931 11,864 47,429 47,252
 23,272 23,459 86,460 92,949
 Operating income (loss) (694) 6,975 (1,449) 35,095
 Gain on in-orbit failure of
 Solidaridad I 5,078 7,264 8,379 7,264
 Interest income 159 1,517 2,001 9,269
 Interest expense and amortization
 of deferred financing costs (8,169) (12,079) (37,789) (55,917)
 Net foreign exchange gain (loss) 53 (72) 93 28
 Income (loss) before deferred
 income tax (3,573) 3,605 (28,765) (4,261)
 Deferred income tax benefit
 (expense) (4,418) (4,837) 8,837 1,149
 Net income (loss) $(7,991) $(1,232) $(19,928) $(3,112)
 Preferred stock dividend
 requirement  (376) (376) (1,507) (1,507)
 Net income (loss) applicable to
 common stockholders $(8,367) $(1,608) $(21,435) $(4,619)
 
 
 OTHER HIGHLIGHTS
 (Amounts in millions of US dollars)
 
 
 Years ended
 December 31,
 2002 2001
 Other Data:
  Capital expenditures
 Construction in progress-Satmex 6 119.8 91.9
 Other, net 3.4 3.8
 
 Non-Financial Data:
 Backlog (at end of period) 328.8 369.5
 Bookings 72.6 124.8
 
 
 SATELITES MEXICANOS, S.A. DE C.V.
 (Subsidiary of Servicios Corporativos Satelitales, S.A. de C.V.)
 
 STATEMENTS OF CASH FLOWS
 (Amounts in thousands of U.S. dollars)
 
 
 2002 2001
 Operating activities
 Net income (loss) $(19,928)  $(3,112)
 Adjustments to reconcile net loss to
 operating cash flow:
 Depreciation expense and
 amortization of concessions 47,429 47,252
 Amortization of deferred financing
 costs  2,315 2,302
 Gain on in-orbit failure of
 Solidaridad I (5,277) (7,264)
 Deferred revenue --customers 21 (3,918)
 Deferred revenue -- Mexican
 Government (2,200) (2,200)
 Deferred income taxes (8,837) (1,149)
 Interest income from restricted and
 segregated cash  (1,360) (7,440)
 Use of restricted and segregated
 cash-interest & commissions 15,400
 Changes in assets and liabilities:
 Accounts receivable (3,555) 5,860
  Prepaid insurance 4,146 3,323
 Accounts payable and accrued
 expenses (7,422) (3,345)
 Interest payable  9,062
 Due from / to related parties 265 (10,233)
 Deferred financing costs and other assets (135) (133)
 Cash flow provided by operating activities 20,862 29,005
 Investing activities
 Use of restricted and segregated cash 108,013 83,806
 Construction in progress --- Satmex 6 (119,811) (91,920)
 Acquisition of equipment, net (3,436) (3,822)
  Cash flow used in investing activities (15,234) (11,936)
 Financing activities
 Use of restricted and segregated cash-debt 26,626 500
 Borrowing under revolving credit
 facility  13,000
 Repayment of senior secured notes (31,626) (1,000)
 Repayment of revolving credit
 facility (13,000) (15,000)
 Cash flow used in financing
 activities (5,000) (15,500)
 Increase in cash and cash
 equivalents 628 1,569
 Cash and cash equivalents --
 beginning of period  26,194 24,625
 Cash and cash equivalents -- end of period $26,822 $26,194
 Supplemental disclosure

Interest paid $49,309 $57,147