Case No.	10-12302 PJW
Reporting Period: March 1 through March 31, 2011

Capital Growth Systems, Inc.

Consolidating Statement of Operations

for the month of March 2011

	Consolidated Total

INCOME STATEMENT

Revenues	$	4,382,361

Cost of Revenues	$	3,245,387

Gross Margin	$	1,136,973

OPERATING EXPENSES

Compensation	$	945,216
Travel and entertainment	$	57,776
Occupancy	$	73,208
Professional services	$	84,839
Insurance	$	7,571
Restructuring Expenses	$	431,014
Other	$	53,803

Selling, general, and administrative expenses	$	1,653,428

EBITDA	$	(516,455	)

Bad Debt Expense (Recovery)	$	0
Depreciation & Amortization	$	224,069

Operating Income (Loss)	$	(740,524	)

Interest Expense	$	1,470,407

NET INCOME (LOSS)	$	(2,210,931	)

Case No.	10-12302 PJW
Reporting Period: March 1 through March 31, 2011

Capital Growth Systems, Inc.

Consolidating Statement of Operations

for the two months ending March 31, 2011

	Consolidated Total

INCOME STATEMENT

Revenues	$	13,123,313

Cost of Revenues	$	9,807,664

Gross Margin	$	3,315,649

OPERATING EXPENSES

Compensation	$	2,562,599
Travel and entertainment	$	297,013
Occupancy	$	209,006
Professional services	$	373,540
Insurance	$	22,711
Restructuring Expenses	$	903,142
Other	$	(126,731	)

Selling, general, and administrative expenses	$	4,241,279

EBITDA	$	(925,630	)

Bad Debt Expense (Recovery)	$	15,000
Depreciation & Amortization	$	675,825

Operating Income (Loss)	$	(1,616,455	)

Interest Expense	$	4,229,124

NET INCOME (LOSS)	$	(5,845,579	)

Case No.	10-12302 PJW
Reporting Period: March 1 through March 31, 2011

Capital Growth Systems, Inc.

Summary of All Units

For the Month Ending March 31, 2011

	Consolidated Total
BALANCE SHEET

Current Assets
Cash	$	2,054,996
Accounts Receivable, net	$	3,869,822
Other Current Assets	$	4,643,229
Total Current Assets	$	10,568,047

Fixed Assets, gross	$	4,500,761
Accumulated Depreciation	$	(3,843,567	)
Fixed Assets, net	$	657,194

Other Assets
Other Assets	$	185,788
Intangible Assets	$	13,517,876
Goodwill	$	1,479,649

Total Assets	$	26,408,554

Current Liabilities
Current maturities of debt	$	27,591,701
Post-Petition Accounts Payable	$	4,874,266
Pre-Petition Accounts Payable	$	13,072,191
Post-Petition Accrued Expenses	$	1,697,299
Pre-Petition Accrued Expenses	$	5,133,380
Deferred Revenue - Short Term	$	3,335,180
Total Current Liabilities	$	55,704,017

Long-term Liabilities
Debt	$	10,567,699
Taxes	$	67,000
Total Long-term Liabilities	$	10,634,699

Total Liabilities	$	66,338,716

Shareholders' Equity
Common stock	$	17,015
Additional Paid in Capital	$	91,602,291
Retained Earnings, beginning of year	$	(125,089,332	)
Cumulative (gain) loss on currency translation	$	(614,557	)
Current Year Retained Earnings Inc/Loss	$	(5,845,579	)

Total Equity	$	(39,930,162	)

Total Liabilities and Shareholders' Equity	$	26,408,554

Case No.	10-12302 PJW
Reporting Period: March 1 through March 31, 2011

Capital Growth Systems, Inc.

Consolidated AP Aging Report (post-petition)

As of 3/31/2011

		Current				1-30				31-60				61-90				Over 90				Total
Total Accounts Payable		$	31,981			$	2,364,195			$	-55,949			$	402,807			$	2,095,119			$	4,838,152

Case No.	10-12302 PJW
Reporting Period: March 1 through March 31, 2011

Capital Growth Systems, Inc.

Consolidated AR Aging Report (Gross Receivables)

As of 3/31/2011

		Current				1-30 Days				31 - 60 Days				61+				Total
Total Accounts Receivables		$	2,111,899			$	632,237			$	108,773			$	1,578,993			$	4,431,902

CAPITAL GROWTH SYSTEMS INC /FL/ 8-K