1998               1999              1999
                                                                           Bs.                Bs.             U.S.$
                                                                       ----------        ----------         --------
ASSETS
------
CURRENT ASSETS:
    Cash and temporary investments                                         136,964          323,084              498
    Accounts receivable, net of allowance for doubtful accounts of
      Bs. 45,473 and Bs. 77,817                                            450,514          406,911              627
    Accounts receivable from Venezuelan Government entities                100,601          121,204              187
    Inventories and supplies, net                                           83,160           43,400               67
    Other current assets                                                    22,442           12,397               18
                                                                       -----------       ----------        ---------
             Total current assets                                          793,681          906,996            1,397
Property, plant and equipment, net                                       3,325,081        3,116,672            4,800
Cellular concession, net                                                    89,395           86,720              134
Other assets                                                               237,301          224,912              346
                                                                       -----------       ----------        ---------
             Total assets                                                4,445,458        4,335,300            6,677
                                                                       ===========       ==========        =========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
    Short-term debt                                                         37,162           53,521               82
    Accounts payable                                                       246,279          275,045              424
    Employee severance benefits, net                                         6,412            8,851               14
    Accrued employee benefits                                               25,264           33,677               52
    Other                                                                  207,920          173,410              267
                                                                       -----------       ----------        ---------
             Total current liabilities                                     523,037          544,504              839

LONG-TERM LIABILITIES:
     Long-term debt                                                        405,822          341,596              526
     Pension and postretirement benefit obligations                        167,052          327,329              504
                                                                       -----------       ----------        ---------
             Total liabilities                                           1,095,911        1,213,429            1,869

STOCKHOLDERS' EQUITY                                                     3,349,547        3,121,871            4,808
                                                                       -----------       ----------        ---------
             Total liabilities and stockholders' equity                  4,445,458        4,335,300            6,677
                                                                       ===========       ==========        =========