Aegis Communications Group, Inc. Consolidated Balance Sheets (In thousands, except share and per share amounts)

				December 31,
				2003			2002
Assets
Current assets:
	Cash and cash equivalents			$	1,703		$	1,584
	Restricted Cash				4,629			—
	Accounts receivable—trade, less allowance for doubtful accounts of $541 and $639, respectively				23,615			20,871
	Prepaid expenses and other current assets				1,379			1,379
		Total current assets			31,326			23,834
Property and equipment, net of accumulated depreciation of $78,046 and $66,797 respectively					18,297			28,627
Deferred financing costs, net of accumulated amortization of $2,854 and $2,641, respectively					407			189
Other assets					264			28
				$	50,294		$	52,678
				2003			2002
Liabilities & Shareholders' Deficit
Current liabilities:
	Current portion of capital leases			$	1,140		$	1,333
	Accounts payable				4,427			3,375
	Accrued compensation expense and related liabilities				4,637			3,764
	Accrued interest expense				89			160
	Other current liabilities				9,976			9,843
	Current maturity of notes payable, net of discount of $892				5,108			—
	Net current liabilities of discontinued operations				248			553
		Total current liabilities			25,625			19,028
Revolving line of credit					—			5,900
Long term notes payable, net of discount of $3,307					18,924			—
Capital lease obligations, net of current portions					832			1,873
Subordinated indebtedness due to affiliates					—			13,936
Commitments and contingencies
Redeemable convertible preferred stock 23,375 and 46,750, 9.626% cumulative Series F shares issued and outstanding in 2003 and 2002, respectively					31,362			57,491
Shareholders' deficit:
	Preferred Stock, $.01 par value, 2,000,000 shares authorized; 29,778 convertible, $.36 cumulative Series B shares issued and outstanding in 2003 and 2002; 0 and 129,423 convertible 15% cumulative Series D shares issued and outstanding in 2003 and 2002 respectively; 0 and 73,699 convertible 15% cumulative Series E shares issued and outstanding in 2003 and 2002 respectively.				—			2
	Common stock, $.01 par value, 200,000,000 shares authorized; 85,480,587 and 52,646,768 shares issued and outstanding in 2003 and 2002, respectively				855			526
	Additional paid-in capital				106,091			75,852
	Treasury shares; at cost, 475,600 held in 2003 and 2002				(1,199	)		(1,199
	Retained deficit				(132,196	)		(120,731
		Total shareholders' deficit			(26,449	)		(45,550
				$	50,294		$	52,678