- Net Revenue Increased 9% in the Quarter in Nominal Terms -

     - Growth of New Mobile Broadband Users Doubles Thanks to Superior

                                Technology -



    MEXICO CITY, July 24 /EMWNews/ -- Grupo Iusacell, S.A.B.

de C.V. (BMV: CEL; LATIBEX: XCEL), the first provider of wireless cellular

third generation services in Mexico with a national footprint, announced

today net revenue of Ps.2,661 million and EBITDA of Ps.460 million in the

second quarter of 2008.



    In nominal terms -- considering each quarter figures in current pesos

-- revenue grew 9%, and EBITDA increased 12%.



    "Revenue continued its positive trend and EBITDA has outpaced sales

growth for the eighth consecutive quarter, all in favor of strengthening

our profitability," said Gustavo Guzman, Grupo Iusacell Chief Executive

Officer. "The solid advance is even more significant taking into account

that the base period for comparison includes the results of the Grupo

Iusacell and Unefon merger."



    "A year since our merger, we now have superior market positioning,

operative efficiency growth, and the most extensive and efficient third

generation network coverage in Mexico," added Mr. Guzman. "We offer the

fastest data transmission service in the country, which in this quarter

contributed to the remarkable increase in the number of Mobile Broadband

Users (BAM) and allowed the successful commercialization of the unique

Blackberry Pearl third generation handset in Mexico, as well as

facilitating the continued expansion of our postpaid subscriber base."



    Second Quarter Results



    The merger between Grupo Iusacell and Unefon Holdings took place in the

second quarter 2007, thus the second quarter of 2007 and 2008 financial

results are consolidated figures.



    As we detailed in the previous quarter, this year changes in norms of

financial information were introduced. Under the new rules, the 2008

figures are in current pesos, while the 2007 figures are in constant pesos

as of December of 2007.




    Below are the financial results under the new rules:





                              2Q07       2Q08                Change

                                                    Ps.        %      Nominal*



    Net revenue              $2,516     $2,661      $146       6%        9%

    EBITDA                     $420       $460       $40       9%       12%

    Net income                 $141      $(228)    $(369)     ----     ----

    Earnings per Share        $1.12     $(1.82)   $(2.95)     ----     ----







    Million pesos in constant purchasing power as of December 31, 2007 for

2Q07, and 2Q08 in current pesos.



    EBITDA: Revenue less cost and operating expenses.



    * Change in nominal terms is included to help in the analysis of this

report. The nominal change is equivalent to adding the accumulated

inflation between June and December of 2007 to the new financial reporting

rules.



    Net Revenue



    Net revenue during the quarter increased 6% to Ps.2,661 million

compared to Ps.2,516 million in the same period of the previous year.

Growth is due mainly to higher incoming roaming revenues, postpaid rents of

cellular services, long distance communication and data service income from

our 3G EV-DO (Evolution-Data Optimized) network.



    Of particular significance was the dynamism of the BAM service --

wireless mobile connectivity through Internet broadband, at the fastest

speed available in Mexico -- which reached 71,000 users versus 26,000 a

year earlier. The new client growth rate is increasingly dynamic; 17,000

new users were added in second quarter 2008, more than double the 8,000 new

clients gained in the same 2007 period.










    Subscriber Base



                                      2Q 2007       2Q 2008       Change

                                                                    %



    Subscribers (thousands)            3,920         4,050          3%

      Postpaid                           908         1,076         19%

      Prepaid                          3,012         2,974         -1%





    The number of postpaid subscribers increased 19% over the year ago

period, a significant figure given their high profitability and low churn

rate.



    Grupo Iusacell's subscriber base is 27% postpaid and 73% prepaid users.

The ratio of postpaid subscribers to total users during the period is four

percentage points higher than 23% during the second quarter of 2007, when

Grupo Iusacell and Unefon merged -- and the company is gearing its efforts

toward continued strong postpaid percentage growth in the future. Prior to

the Unefon merger, Grupo Iusacell's subscriber mix was 35% postpaid and 65%

prepaid.



    Grupo Iusacell believes that number portability, recently implemented

in Mexico, offers a great opportunity for users of other companies to

access Iusacell's innovative services, which allow maximum speed in

applications such as wireless Internet connectivity and customized GPS

products, as well as access to real time television. These services also

include access to Comunidad Iusacell (the Iusacell Community), allowing

users to communicate with millions of Iusacell subscribers with the most

competitive rates in the market.



    Costs and Expenses



    Quarterly costs were Ps.1,532 million, versus Ps.1,511 million in the

same 2007 period. The increase was a result of higher handset subsidies --

consistent with the increase in postpaid subscribers -- plus higher network

rents and interconnection outlays as a result of growth in voice traffic.



    Operating expenses were Ps.670 million, versus Ps.584 million in the

second quarter a year earlier. The increase was a result of higher

advertising outlays -- related to extensive marketing campaigns for the

launch of new product and services -- as well as higher personnel expenses

for a larger number of promotion executives, more points of sale and

increased customer service, to bring the company even closer to its

clients. This was partially compensated by reductions in administrative

expenses.



    EBITDA and Net Income



    EBITDA for the quarter was Ps.460 million, 9% higher than the Ps.420

million posted in the year ago period. EBITDA margin was 17%, unchanged

from the year ago quarter.



    The company registered a net loss of Ps.228 million during the quarter,

versus net income of Ps.141 million a year earlier. The change is the

result of extraordinary fiscal gains of Ps.659 million in 2007, due to

cancellation of Unefon's deferred income tax liabilities, which Grupo

Iusacell included in its consolidated results a year ago.



    Capex



    Capital expenditures for the second quarter of 2008 were Ps.188

million, mainly for system and equipment purchases for the purpose of

extending Iusacell's 3-G network coverage and capacity and its EVDO

services.



    Six Month Results



    Income for the first six months was 5,420 million, up 17% from Ps.4,625

million during the year ago period. EBITDA was Ps.1,020 million, up 26%

from Ps.808 million a year ago. Net losses were Ps.508 million, versus

Ps.1,131 million for the first six months a year ago. The greatest loss a

year ago was due to the 2007 cancellation of Ps.826 million in fixed

assets, for the substitution of transmission cells with the superior EVDO

technology.










                               6M07       6M08               Change

                                                     Ps.       %      Nominal*



    Net Revenue              $4,625     $5,420      $795      17%       21%

    EBITDA                     $808     $1,020      $212      26%       30%

    Net Income              $(1,131)     $(508)     $623      55%       54%

    Earnings per Share       $(9.05)    $(4.06)    $4.99      55%       54%





    Million pesos in constant purchasing power as of December 31, 2007 for

6M07, and 6M08 in current pesos.



    EBITDA: Revenue less cost and operating expenses.



    * Change in nominal terms is included to help in the analysis of this

report. The nominal change is equivalent to adding the accumulated

inflation between June and December of 2007 to the new financial reporting

rules.

    About Iusacell



    Grupo Iusacell, S.A.B. de C.V. (BMV: CEL; Latibex: XCEL) is a wireless

cellular and PCS service provider in Mexico with a national footprint.

Iusacell offers more and better voice communication and data services

through state-of-the-art technology, such as its new 3G network, throughout

all of the regions in which it operates. In addition to its core mobile

telephony services, Iusacell also provides a wide range of other

telecommunications services, including long distance, wireless local

telephony and data transmission services.



    Grupo Iusacell is a Grupo Salinas company (http://www.gruposalinas.com) a

group of dynamic, fast-growing, and technologically advanced companies

focused on creating shareholder value, contributing to build the middle

class of the countries in which they operate, and improving society through

excellence. Created by Mexican entrepreneur Ricardo B. Salinas

(http://www.ricardosalinas.com), Grupo Salinas operates as a management

development and decision forum for the top leaders of member companies. The

companies include TV Azteca (http://www.irtvazteca.com), Azteca America

(http://www.aztecaamerica.com), Grupo Elektra (http://www.grupoelektra.com.mx), Banco

Azteca (http://www.bancoazteca.com.mx), Afore Azteca (http://www.aforeazteca.com.mx),

Seguros Azteca (http://www.segurosazteca.com.mx) and Grupo Iusacell

(http://www.iusacell.com.mx). Each of the Grupo Salinas companies operates

independently, with its own management, board of directors and

shareholders. Grupo Salinas has no equity holdings. However, 6 member

companies share a common vision, values and strategies for achieving rapid

growth, superior results and world-class performance.



    Grupo Iusacell, S.A.B. de C.V. quarterly reports and all other written

materials may from time to time contain statements about expected future

events and financial results that are forward-looking and subject to risks

and uncertainties. For those statements, the Company claims the protection

of the corresponding laws.






    Attached is the Consolidated Income Statement of each of Grupo Iusacell,

S.A.B. de C.V. for the three-month and six-month period ended March 31, 2008,

and the Consolidated Balance Sheet of Grupo Iusacell, S.A.B. de C.V. at June

30, 2008.







               GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES

                        CONSOLIDATED INCOME STATEMENTS

                     FIGURES IN MILLIONS OF MEXICAN PESOS





                                2Q07           2Q08          Change



    Gross Revenues          2,633  105%    2,772  104%    138     5%

    Commissions              (118)  (5%)    (110)  (4%)     8     6%

    Net Revenues            2,516  100%    2,661  100%    146     6%



    Cost of services          991   39%      975   37%    (16)   (2%)

    Handsets Subsidy          520   21%      556   21%     37     7%

    Total Cost              1,511   60%    1,532   58%     21     1%



    Gross Profit            1,005   40%    1,130   42%    125    12%



    Selling, General &

     Administrative

     Expenses                 584   23%      670   25%     85    15%



    EBITDA                    420   17%      460   17%     40     9%



    Depreciation and

     Amortization            (547) (22%)    (452) (17%)    95    17%



    Fixed assets' write-off     0    0%        -    0%      0   100%



    Other income

     (expenses)                (2)  (0%)       9    0%     11  n.m.



    Comprehensive

     Financing Cost

         Interest Expense

          - Net              (315) (13%)    (365) (14%)   (51)  (16%)

         Foreign exchange

          gain (loss)         195    8%      206    8%     11     6%

         Gain from net

          monetary

          position            (49)  (2%)      (0)  (0%)    49   100%

         Derivative

          instruments

          (loss) gain          (1)  (0%)       2    0%      3  n.m.

                             (170)  (7%)    (157)  (6%)    12     7%



    Income (Loss) Before

     Taxes                   (298) (12%)    (141)  (5%)   157    53%



    Tax Provisions:

      Asset Tax              (223)  (9%)       2    0%    225   101%

      Corporate Flat

       Rate Tax               -      0%      (29)  (1%)   (29) n.a.

      Deferred Income Tax     659   26%      (88)  (3%)  (747) (113%)

                              436   17%     (114)  (4%)  (550) (126%)



    Minority Interest           3    0%       27    1%     24  n.m.



    Net Income (Loss)         141    6%     (228)  (9%)  (369) n.m.





    PER SHARE INFORMATION



    Outstanding Shares

     (000) at the end of

     the quarter          125,279        125,279         0.96     0%

    Quarter Earnings

     (Losses) per Share

     (Pesos)                 1.12          (1.82)       (2.95) n.m.







               GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES

                        CONSOLIDATED INCOME STATEMENTS

                     FIGURES IN MILLIONS OF MEXICAN PESOS







                               6M07           6M08          Change



    Gross Revenues         4,814  104%    5,655  104%     841    17%

    Commissions             (190)  (4%)    (235)  (4%)    (45)  (24%)

    Net Revenues           4,625  100%    5,420  100%     795    17%



    Cost of services       1,909   41%    1,935   36%      26     1%

    Handsets Subsidy         912   20%    1,068   20%     157    17%

    Total Cost             2,821   61%    3,004   55%     183     6%



    Gross Profit           1,804   39%    2,416   45%     613    34%



    Selling, General &

     Administrative

     Expenses                996   22%    1,396   26%     400    40%



    EBITDA                   808   17%    1,020   19%     212    26%



    Depreciation and

     Amortization           (956) (21%)    (992) (18%)    (36)   (4%)



    Fixed assets' write-

     off                    (826) (17%)     -      0%     826   100%



    Other income

     (expenses)                0    0%       19    0%      19   n.m



    Comprehensive

     Financing Cost

         Interest

          Expense - Net     (566) (12%)    (734) (14%)   (168)  (30%)

         Foreign

          exchange

          (loss)               3    0%      362    7%     358   n.m

         Gain from net

          monetary

          position            18    0%        0    0%     (18) (100%)

         Derivative

          instruments

          (loss) gain        (19)  (0%)       1    0%      20   106%

                            (564) (12%)    (371)  (7%)    193    34%



    Income (Loss) Before

     Taxes                (1,538) (33%)    (324)  (6%)  1,214    79%



    Tax Provisions:

         Asset Tax          (257)  (6%)       0    0%     258   100%

         Corporate Flat

          Rate Tax           -      0%      (52)  (1%)    (52) n.a.

         Deferred Income

          Tax                659   14%     (175)  (3%)   (834) (127%)

                             402    9%     (227)  (4%)   (629) (156%)



    Minority Interest          5    0%       43    1%      38   n.m



    Net Income (Loss)     (1,131) (24%)    (508)  (9%)    623    55%





    Last Twelve Months

     EBITDA                1,631          2,316           685    42%



    Last Twelve Months

     Net Income (Loss)     4,355           (662)       (5,016) (115%)





         PER SHARE

        INFORMATION



    Outstanding Shares

     (000) at the end of

     the quarter         125,279        125,279             1     0%

    LTM Earnings

     (Losses) per Share

     (Pesos)               34.76          (5.28)       (40.04) (115%)







               GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

                     FIGURES IN MILLIONS OF MEXICAN PESOS





                                 As of June 30,

                                 2007          2008         Change



    Cash and cash

     equivalents              967    5%     479    3%    (488) (50%)



    Customers                 804    4%     928    5%     123   15%



    Other accounts

     receivable               226    1%       2    0%    (224) (99%)



    Advanced payments and

     other receivables        371    2%     599    3%     228   61%



    Unamortized handset

     subsidy                  592    3%     746    4%     154   26%



    Inventories               269    1%     104    1%    (166) (62%)



    Current assets          3,230   17%   2,857   16%    (373) (12%)



    Fixed assets            7,477   40%   6,718   39%    (759) (10%)



    Goodwill                3,581   19%   3,774   22%     193    5%



    Other assets            4,526   24%   4,012   23%    (514) (11%)



    TOTAL ASSETS           18,814  100%  17,361  100%  (1,453)  (8%)





    Short-term debt         1,339    7%   1,931   11%     592   44%

    Accrued interests         541    3%     110    1%    (432) (80%)

    Short-term liabilities

     with financial cost    1,881   10%   2,041   12%     160    9%



    Suppliers               1,239    7%   1,196    7%     (43)  (3%)

    Unaccrued air time        147    1%     128    1%     (19) (13%)

    Accumulated expenses

     and other payables     1,775    9%   1,430    8%    (345) (19%)

    Short-term liabilities

     without financial

     cost                   3,161   17%   2,754   16%    (407) (13%)



    Short-term liabilities  5,042   27%   4,795   28%    (247)  (5%)



    Long-term debt          8,944   48%   8,363   48%    (581)  (6%)

    Other long-term

     liabilities               23    0%      13    0%     (11) (47%)

    Long-term liabilities

     with financial cost    8,968   48%   8,376   48%    (592)  (7%)



    Deferred taxes            -      0%     466    3%     466  n.a.

    Labor obligations         -      0%      25    0%      25  n.a.

    Long-term liabilities

     with financial cost      -      0%     491    3%     491  n.a.



    Advances from

     customers              1,350    7%   1,013    6%    (336) (25%)

    Deferred credits        1,350    7%   1,013    6%    (336) (25%)



    TOTAL LIABILITIES      15,359   82%  14,675   85%    (685)  (4%)



    STOCKHOLDERS' EQUITY    3,454   18%   2,686   15%    (769) (22%)



    LIABILITIES + EQUITY   18,814  100%  17,361  100%  (1,453)  (8%)