Case No. 10-12302 PJW

Reporting Period: February 1 through February 28, 2011

Capital Growth Systems, Inc.

Consolidating Statement of Operations

for the month of February 2011

	Consolidated Total

INCOME STATEMENT

Revenues	$	4,433,336
Cost of Revenues	$	3,333,529
Gross Margin	$	1,099,807

OPERATING EXPENSES

Compensation	$	859,153
Travel and entertainment	$	159,519
Occupancy	$	79,087
Professional services	$	112,202
Insurance	$	16,791
Restructuring Expenses	$	221,738
Other	$	104,329
Selling, general, and administrative expenses	$	1,552,819

EBITDA	$	(453,012	)

Bad Debt Expense (Recovery)	$	15,000
Depreciation	$	27,816
Amortization	$	196,253
Operating Income (Loss)	$	(692,081	)

Interest Expense	$	974,733
Income tax expense (benefit)	$	2,876
NET INCOME (LOSS)	$	(1,669,690	)

Case No. 10-12302 PJW

Reporting Period: February 1 through February 28, 2011

Capital Growth Systems, Inc.

Consolidating Statement of Operations

for the two months ending February 28, 2011

	Consolidated Total

INCOME STATEMENT

Revenues	$	8,740,946
Cost of Revenues	$	6,565,615
Gross Margin	$	2,175,331

OPERATING EXPENSES

Compensation	$	1,643,719
Travel and entertainment	$	251,682
Occupancy	$	157,956
Professional services	$	212,708
Insurance	$	83,120
Restructuring Expenses	$	472,128
Other	$	171,209
Selling, general, and administrative expenses	$	2,992,522

EBITDA	$	(817,191	)

Bad Debt Expense (Recovery)	$	15,000
Depreciation	$	59,249
Amortization	$	392,506
Operating Income (Loss)	$	(1,283,946	)

Interest Expense	$	2,406,884
Income tax expense (benefit)	$	4,540
NET INCOME (LOSS)	$	(3,695,370	)

Case No. 10-12302 PJW

Reporting Period: February 1 through February 28, 2011

Capital Growth Systems, Inc.

Summary of All Units

For the Month Ending February 28, 2011

	Consolidated Total
BALANCE SHEET

Current Assets
Cash	$	1,458,230
Accounts Receivable, net	$	5,320,277
Other Current Assets	$	4,342,193
Total Current Assets	$	11,120,700

Fixed Assets, gross	$	3,830,028
Accumulated Depreciation	$	(3,162,746	)
Fixed Assets, net	$	667,282

Other Assets
Other Assets	$	201,888
Intangible Assets	$	13,714,129
Goodwill	$	1,479,649
Total Assets	$	27,183,648

Current Liabilities
Current maturities of debt	$	26,296,307
Post-Petition Accounts Payable	$	5,224,333
Pre-Petition Accounts Payable	$	14,145,159
Post-Petition Accrued Expenses	$	519,764
Pre-Petition Accrued Expenses	$	5,149,559
Deferred Revenue - Short Term	$	3,160,744
Total Current Liabilities	$	54,495,866

Long-term Liabilities
Debt	$	10,473,276
Taxes	$	67,000
Total Long-term Liabilities	$	10,540,276
Total Liabilities	$	65,036,142

Shareholders' Equity
Common stock	$	17,015
Additional Paid in Capital	$	91,531,086
Retained Earnings, beginning of year	$	(125,396,649	)
Cumulative (gain) loss on currency translation	$	(308,576	)
Current Year Retained Earnings Inc/Loss	$	(3,695,370	)
Total Equity	$	(37,852,494	)

Total Liabilities and Shareholders' Equity	$	27,183,648

Case No. 10-12302 PJW

Reporting Period: February 1 through February 28, 2011

Capital Growth Systems, Inc.

Consolidated AP Aging Report (post-petition)

As of 2/28/2011

		Current					1-30				31-60				61-90			Over 90				Total
Total Accounts Payable		$	5,000			$	909,343			$	1,656,055			$	667,796			$	1,893,520			$	5,131,715

Case No. 10-12302 PJW

Reporting Period: February 1 through February 28, 2011

Capital Growth Systems, Inc.

Consolidated AR Aging Report (Gross Receivables)

As of 2/28/2011

		Current				1-30 Days				31 - 60 Days					61+			Total
Total Accounts Receivables		$	1,778,086			$	1,508,874			$	192,858			$	2,401,562			$	5,881,379

CAPITAL GROWTH SYSTEMS INC /FL/ 8-K