America Movil, through its Brazilian subsidiaries, participated in the auction of licenses to provide wireless services in the 1900 Mhz frequency in various regions of Brazil. The auction was carried out by the Brazilian Government in the month of November. In the process, America Movil obtained licenses to operate in the city of Sao Paulo; in Santa Catarina and Paraná; and in Bahia and Sergipe. The aggregate cost of these licenses is 429 million reais (approximately 1.2 billion pesos).

On December 24th, America Movil reached an agreement with Millicom International Cellular pursuant to which it will acquire from the latter its 95% interest in Colombian wireless company Celcaribe S.A, which operates in the Caribbean region of Colombia. The transaction is expected to close in February 2003. This acquisition will allow America Movil to complete nationwide coverage in Colombia and consolidate its presence in that country.

Also in December, America Movil launched wireless services in Nicaragua through its subsidiary Servicios de Comunicaciones de Nicaragua, S.A., which operates under the PCS Digital brand name. It has put in place a GSM network in the capital city of Managua and will attain nationwide coverage in the first half of 2003.

America Movil completed two financing transactions for nearly 500 million dollars in December and January with a view to improving the maturity profile of its debt and its overall liquidity position. The first of these transactions is a syndicated loan facility arranged by Citibank and Bank of America in the amount of 400 million dollars, in which 13 banks participated. The second one is a floating-rate note placed in the Mexican market, for an amount of 1 billion pesos. America Movil's cash and securities balance is now roughly equal to its short term debt.

America Movil's wireless subscriber base surpassed the 30 million mark, ending the year with 31.6 million subscribers after net additions of 5.6 million in 2002 (a 21.5% increase year-on-year). The company added 1.7 million new customers in the fourth quarter, 65% more than in the previous one. Equity subscribers reached almost 31 million, 6% more than in the previous quarter and over a third higher than a year earlier. It is noteworthy that this figure represents over 97% of the group's total subscriber base.

Telcel gained 716 thousand new customers in the fourth quarter, to finish the year with somewhat more than 20 million subscribers, up 18.3% relative to the prior year. Net subscriber gains in 2002 totaled 3.1 million and accounted for over 55% of America Movil's net additions in the period.

Brazilian subsidiary Telecom Americas came second to Telcel in terms of net subscriber additions in the fourth quarter of the year, with 371 thousand, to reach a total of 5.2 million subscribers. Those additions represented over 40% of the net subscriber gains of Telecom Americas in 2002. Of the four companies that make up Telecom Americas, Americel was the most dynamic one followed by Telet, both on an annual and quarterly basis.

In terms of net subscriber additions in the year, Comcel generated 937 thousand making it the second company with more subscriber additions during 2002 as a whole. Ecuadorian subsidiary Conecel exhibited the most rapid rate of subscriber growth in 2002, nearly doubling its subscriber base year-over-year, while Comcel and Sercom (the wireless arm of Telgua) registered similar rates of growth of their subscriber base, at 49.7% and 49.4% respectively on an annual basis. Conecel added 439 thousand subscribers in the year and Sercom 208 thousand, while Tracfone managed to post a gain of 55 thousand subs with a strong performance in the quarter.

In addition to the above, America Movil had 804 thousand wireline subscribers at the end of 2002, of which 89 thousand were obtained during the year.

America Movil generated revenues of 57.5 billion pesos in 2002, 31.4% more than in the previous year, as fourth quarter revenues reached 16.3 billion pesos, up 40.9% year-on-year.

EBITDA totaled 5.8 billion pesos in the quarter, bringing the year's total to 20.8 billion pesos. On an annual basis, this implied a 57.6% rate of growth relative to the previous year. The strong performance of EBITDA came about as revenues outpaced costs on a 1.5 to 1 basis, reflecting among other things the effectiveness of the cost containment policies that have been put in place. The EBITDA margin shot up by 6 percentage points relative to 2001, to 36.2%.

In the fourth quarter Telcel contributed slightly more than two thirds of America Movil's revenues and three fourths of its EBITDA, whereas Comcel's share of both revenues and EBITDA was the same, at 7%. Telgua was the second largest provider of EBITDA among America Movil's subsidiaries. It must be noted that in the case of Telecom Americas the seasonal impact on EBITDA was greater than in the other subsidiaries, leading it to account for a lower share of EBITDA in the last quarter than in the previous one (6.7% vs 9.4%).

As regards operating profits, they managed to increase as a percent of revenues, from 19.4% in 2001 to 21.7% in 2002, in which they totaled 12.5 billion pesos. The latter figure exceeded that of the previous year by slightly more than 47%.

Before exceptional items, America Movil registered a net profit of 4.7 billion pesos in the fourth quarter, reflecting not only the strong operational results but also important foreign exchange and monetary gains. This resulted in a total net profit for 2002 of 6.7 billion pesos, 2.8 times greater than the one seen a year before (both before exceptional items).

America Movil registered an impairment charge in the fourth quarter for a total amount of 2.1 billion pesos. The charge, associated with CompUSA, had an impact on net income through its equity participation in the results of affiliates but did not alter the operating results. This exceptional item had the effect of reducing to 2.6 billion pesos the net profit for the fourth quarter and to 4.6 billion pesos the one corresponding to the year 2002.

The net debt position of America Movil decreased by 2.7 billion pesos in the quarter, to 36.5 billion pesos. This reduction in net debt took place even after consideration is given to the additional debt that the company took on as it acquired from the Brazilian Government licenses to provide wireless services in three new regions in Brazil (this debt totaled approximately 1.2 billion pesos).

At the end of 2002, America Movil's cash and securities position stood at 10.6 billion pesos and was roughly equal to the amount of short term debt, which attests to the good liquidity position of the company. The ratio of net debt to EBITDA (last twelve months) was 1.75 times at the end of the year.

Following accounting guidelines under both Mexican and US GAAP, a revaluation of assets owned by the Brazilian and Colombian subsidiaries on the basis of market prices led to a downward adjustment in the amount of 4.9 billion pesos in the value of goodwill and a corresponding increase in the value of plant and equipment. Brazilian and Colombian accounting had not corrected for years of inflation and devaluation and this had resulted in misleadingly low values for these assets.

In December, America Movil's largest subsidiary surpassed the 20 million-subscriber mark, as it added 716 thousand subscribers in the fourth quarter, including 38 thousand new postpaid clients. Telcel's GSM subscriber base reached over 500 thousand at the end of the year, even though the commercial launching of the new network just began on October 1st.

Total revenues for the year stood at 40.8 billion pesos, almost 20% above those of the previous year, with service revenues increasing roughly in line with subscriber growth. Revenues during the last three months of the year amounted to 11 billion pesos and were 5.8% higher quarter-on-quarter and 20.3% on an annual basis. ARPUs rose for the third consecutive quarter: both the prepaid and the postpaid ARPU were up approximately 2%. In the case of the former one, they were supported by a 10.7% jump in MOUs.

EBITDA added up to 15.7 billion pesos during 2002, a 29.5% increase relative to the year before, with its respective margin increasing by almost 3 percentage points, to 38.5%. This increment reflects a more efficient operation, helped by good cost control policies.

During the fourth quarter, the EBITDA margin almost mirrored that of the year, in spite of the strong seasonality of sales, which typically results in reduced EBITDA margins in the last quarter.

The operating profit rose by 24.3% in 2002, to 11.9 billion pesos; 3.2 billion pesos were generated in the last three months, representing in both cases 29.1% of total revenues.

Telcel's churn hit a high of 4.1% in the fourth quarter. This churn rate is effectively a "loss" factor associated with the dynamics of past subscriber growth and current economic activity. It is expected that in 2003 the churn rate will be lower than during 2002.

America Movil's Guatemalan subsidiary increased its wireless subscriber base by almost 50% annually in 2002, reaching 628 thousand subscribers at the end of December. The number of fixed lines rose by 89 thousand in the year, to 804 thousand.

The year's revenues came in at 456 million dollars, slightly below those registered the previous year (-1.4%), on account of two things: 1) the increase in revenues from wireless services and public telephony did not fully match the decline in revenues brought about by the reduction of long distance rates applicable to both incoming and outgoing calls; and 2) the booking at the end of last year of certain extraordinary revenues resulting from the settlement of a legal dispute.

The year's EBITDA, at 241 million dollars, was down 7.4% relative to 2001. For the most part this reduction had to do with Telgua implementing in the fourth quarter a more conservative policy regarding accounts receivable and equity investments. Charges in connection with these concepts amounted to 11 million dollars in the quarter. Telgua's operating profits for 2002 stood at 131 million dollars and were equivalent to 28.7% of sales.

It is of interest to note that the share of Sercom in Telgua's revenues and EBITDA continued to increase in 2002. In the case of revenues, Sercom's contribution rose from 18% the year before to 20%; in the case of EBITDA, from 10% to 14%.

Telecom Americas' subscriber base reached 5.2 million subscribers at the end of the year, an increase of 371 thousand clients compared to the previous quarter. On an annual basis the companies' combined subscriber base grew 20%, led by Americel and Telet which showed the highest growth rates amongst the companies, 45% and 33%, respectively.

Total combined revenues for the year exceeded 2 billion reais (685 million dollars) and were up 14.5% compared to the previous year, with service revenues growing roughly at the same rate, slightly below that of subscriber growth. The fourth quarter revenues (580 million reais) increased by 16.4% sequentially and by 17.9% annually. Prepaid ARPUs were up 3.0% in the quarter while the churn rate came down from 2.2% to 1.9%; MOUs rose across the board.

2002 EBITDA came in at 613 million reais (205 million dollars), 59.1% higher than in the previous year, as revenues outpaced costs almost 7 to 1. This resulted among other things from the successful cost-reduction measures implemented in the four companies, which enabled them to continue to grow while maintaining practically the same cost base. This translated into an EBITDA margin expansion of 8.4 percentage points in the year, to 29.9%.

Fourth quarter EBITDA declined sequentially to 137 million reais, due to the strong seasonality of handset sales and net subscriber gains in Brazil which resulted in increased subscriber acquisition costs in the quarter (over 43% of the net subscriber gains of the year took place in the last quarter). Yet, on an annual basis it rose by 37.3% and presented a margin improvement of 3.3 percentage points relative to 2001.

In 2002 Telecom Americas was nearly breakeven in terms of its operating balance. The small loss registered in the year was equivalent to only 1.6% of revenues, and represented an 83.4% improvement over the previous year.

Comcel, in Colombia, ended 2002 with 2.8 million subscribers, almost 50% more than a year earlier, having gained 937 thousand in the period; 245 thousand subscribers were added in the fourth quarter.

Revenues for the year were also up nearly 50%, to 1.0 trillion Colombian pesos, with service revenues expanding by 58.9%. At nearly 300 billion Colombian pesos, fourth quarter revenues presented a 5.7% increase sequentially and 31.1% annually.

With more efficiency and scale, EBITDA soared to 330 billion Colombian pesos, and was 2.7 times greater than the one registered the year before. The EBITDA margin jumped to 32.8%, from 18.0% in 2001.

Comcel generated a 91 billion Colombian pesos operating profit during 2002, in contrast with the 86 billion loss registered during the prior year. During the fourth quarter, the operating profit stood at 38 billion Colombian pesos, a 36.4% increase sequentially, and was equivalent to 13.3% of total revenues.

America Movil's Ecuadorian unit displayed the best subscriber growth among the subsidiaries in relative terms, increasing its subscriber base by 90.8% annually and by 19.4% sequentially, to 923 thousand subscribers at the end of December.

Total revenues for the year were 127 million dollars, a 57% increment year-over-year, led by an important expansion of both service and equipment revenues. In the last quarter, revenues stood at 38 million dollars, having risen by 15% sequentially and almost 51% annually. Although traffic and service revenues have shown a steady increase, rapid subscriber growth has led to a reduction of these figures on a per-user basis.

EBITDA for 2002 amounted to 44 million dollars, almost double the figure of the previous year, in spite of the company's strong subscriber growth. It represented 34.8% of total revenues, which denotes a margin improvement of 5.6 percentage points relative to the previous year. As regards the fourth quarter EBITDA, it increased 14% quarter-over-quarter and 86.3% on an annual basis.

The year's operating balance exhibited a turnaround, going from a 1 million dollar loss in 2001 to a 16 million dollar profit during 2002. The EBIT margin stood at 16.5% in the quarter and 12.8% in the year.