2002 2001ASSETSCurrent Assets:Cash and cash equivalents 2,379,788 3,710,162Marketable securities 189,253 95,976Accounts receivable, net 5,423,035 5,982,013Prepaid expenses 385,318 407,210Total current assets 8,377,393 10,195,360

Plant, property, and equipment, net 30,902,684 30,025,481Inventory, allocated to Work in progress 512,791 687,761Works in progress 164,334 174,390Long-term investments 289,215 569,669Intangible assets 3,044,288 2,325,403Goodwill 75,278 244,977Total assets 42,365,982 44,223,043

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesShort-term and current portion long-term debt 4,721,574 12,435,984Accounts payable and accrued expenses 4,672,936 3,714,158Taxes payable 336,024 193,943Total current liabilities 9,730,534 16,344,084

Long-term debt 14,108,683 8,539,799Pensions and seniority premiums 1,437,407 1,830,495Deferred taxes 3,111,424 3,212,081Deferred credits 272,164 357,523Total liabilities 28,660,211 30,283,983

SHAREHOLDERS' EQUITYEquity of majority stockholdersCommon Stock Common stock - historical cost basis 88,863 94,568 Common stock - accumulated inflation adjustments 7,138,957 7,476,138

7,227,820 7,570,706Paid-in capital 2,803,326 2,803,328Retained earnings from previous years 15,930,865 13,638,737Net Income 6,343,412 7,461,658

22,274,276 21,100,395Other accumulated comprehensive income (18,599,651) (17,535,366)Total shareholders' equity 13,705,771 13,939,050

Total liabilities and shareholders' equity 42,365,982 44,223,043

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONas of December 31, 2001 and 2002

(In thousands of nominal Mexican Pesos, at December 31, 2002 and 2001)

2002 2001Operating Revenue Local service 14,153,294 13,308,968 Foreign service 14,210,850 13,955,859 Other 1,596,930 1,505,565

29,961,074 28,770,392Operating expenses:Cost of sales and services 9,174,267 8,155,318Selling, general and administrative expenses 4,627,212 4,651,593Depreciation and amortization 4,659,853 4,771,773

18,461,343 17,578,685Operating income 11,499,731 11,191,707

Comprehensive financing cost:Interest earned (345,389) (909,830)Interest expense 1,889,254 2,815,763Foreign exchange income (loss), net (312,801) (22,929)Monetary income (loss), net (582,223) (966,938)

648,840 916,067Income before taxes and employees' share of profits 10,850,891 10,275,641

Provisions for: Income tax 3,585,376 2,208,912 Employees' share of profits 805,981 931,993

4,391,357 3,140,904Income before affiliated companies' share of profits 6,459,534 7,134,736

Affiliated companies' share of profits (116,122) (88,413)

Income from continuing operations 6,343,412 7,046,324

Income from subsidiaries, net income tax, and employees' share of profits 415,334Net profit 6,343,412 7,461,658

Earnings per share from continuing operations Basic 1.67 1.71 Diluted 1.56 1.62

Earnings per share Basic 1.67 1.81 Diluted 1.56 1.71

(In thousands of nominal Mexican Pesos at December 31, 2002, except per share

CONSOLIDATED STATEMENT OF INCOMEFor the Years ending December 31, 2002 and 2001

ESTA:DOS CONSOLIDADOS DE SITUAC|ON FINANCIERAAl 31 de diciembre del 2002 y 2001'

(En miles de pesos de poder adquisitivo al 31 de diciembre de 2002 y 2001)

2002

ACTTVOActivo Circulanle:Efectivo e inversiones lemporalesValores negociablesCuenlas por cobrar, netoPagos anticipadosSuma el activo circulanle

Propiedades, planta y equrpo. netolnventarios. destinados a la obra en cursoObras en cursoInversiones permanentesActivo intangible iCr6dito mercantil, neloSuma el activo

PASIVO Y CAPITAL CONTABLEPasivo Circulante:Deuda a corto plazo y porci6n circulante de la'deudaa Iargo prazo

Cuentas por pagar y pasivos acumulados

lmpusstos por pagar

9umr el pasivo clrculanto

Deuda a largo plazoPonsiones y primas d9 antigriedadlmpuestos diferidosQrdditos diforidssSuma el pa6lvo

CAPITAL CONTABLElnter6g mayoritarioCaplisl SEclol:

Hisl6ricoComplemento por actualizacion

Primq en vsnta ds accion€$Ulilidades aoumuladas:

De anog anlsriorseDol ano

otras Bartida$ de {!ilidad intggral aaumulsdasSumq rl snBilnl contsbli

Sumen ol prclvo y rl cnpllrl c0nirbls 4 2,366,981 44, I 23,043

2,379,7881 89,253

5,423,035385,318

8,377,393

30,902,684512,7911 64,334289 ,215

2,O44,28875,278

_____!2-es5,933_

4,721 ,57 4

4,672,936

_:__a!_e43l_" ,9,?E0,531,

1 4,1 08,6831,437 ,4073,1 11 ,424

27?,14428,660,2' t 1

88,8637, I 38,957r , (4t ,Q1u-T805,5e6-

15,930,865613 3,{19-

22,?74,.274(18,5e9,651)

,13,tpE,?71

2001

3 ,7 10 ,162

5,982,013407,210

1 0,1 95,360

30,025,48 1687,76117 4 ,390569,669

2,325,403244,977

____J!]23_,0!3_

12,435 ,9843,714,158

-, . . , 1 eQrq4s

. " 16",344,984

8,539,7991,830,495

3,212,08 1. 957,523

30,283,983

94,568_ *. ,. 7_,4.79+1_98

, 7,570,706-2,803,328

1 3,6ts9,7A7

".* 7. ,4q1,65.q.2 1 ,1 00,395

(1 7,535,366). ." 10.gti ,0qo

ESTADOS CONSOLIDADOS DE R ESULTADOSAl 31 de diciembre del 2002 Y 2001

(En miles de pesos, excepto utilidades por acci6n. de poder adquisitivoal 31 de diciembre de 2002)

2002lngresos de operaci0n:

Servicios localesServicios en el exteriorOtros

Costos y gastos de operaci6n;costo de venla y serviciosComerciales, administrativos y generalesDepreciaci6n y amorlizaci6n

Utllldad de operacl6n

Costo integral de linanciamienlo:r^.^.^^^^ ^^-^!^-r r rEr EDos gor raue-

rr r .vr vrEr PcgavvJ

Utilidad cambiaria, netaGanancia monetaria, neta

Utiljdad.antes de impuesto sobre la renta y participaci6n delos trabajadores en las utilidades

Provisiones para:lmpuegto oobra la rentaPadicipacidn de los trabajadores en las utllidades

Utitidad antgs do la participaci6n on los re6ultados decompanias asocladas

Partiaipacidn en 106 fesultados dF aompafrias agociadas

Utllldad de opofaclanei conlinuas

Utilidad de operaciones ?gcindidas' neta de! impuesto sobrslE r8nta y la padiclpacion de los lrabajadoree en laE utllidadesUtllidad neta

Utllldtd n6la por acgl6n d. utllidad6E conlinua!BisicaDiluida

Utllldad neta por EcclonBasicaDiluida

1,596.930 1.505.56529,961,074 28,770,392

1 4,1 53,29414.210,850

I ,17 4,2674.627 ,212

2001 _

1 3,308,9681 3,955,859

I 1q( CI R

/ aat 60e

ocv.60J 4.771 .77318.461.343 1 7,578,6851 1.499^731 1 1,1 91,707

1345,389)1,889,254(312,801)

(909,830)2,815,763

(22,929J

1 0.850.891 1 0,275,641

(582.223\ (966,938)648.840 91 6,067

2,?08,91 ?oei ooq

4.391 .357 3,1 40,904805.981

6.459,534 7,134,736

(116,122) (88,413)

41 5,3846-343.412 7.461.658

1 .67 1 .711 ,56 1.62

_1..67 _ -1.81 -. J.56 = 1.71 ,