Case No. 10-12302 PJW

Reporting Period: July 1 through July 31, 2011

Capital Growth Systems, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the month ended July 31, 2011

(Unaudited)

	For the month ended July 31, 2011

REVENUES	$	0

COST OF REVENUES		0

GROSS MARGIN		0

OPERATING EXPENSES

Compensation		20,000
Travel and entertainment		5,557
Occupancy		0
Professional services		12,766
Insurance		0
Bad Debt Expense		0
Depreciation & Amortization		0
Restructuring Expenses		36,075
Other expense (Income)	$	(19,195	)

TOTAL OPERATING EXPENSES		55,203

OPERATING INCOME (LOSS)		(55,203	)

Interest Expense (Income)		-
(Gain) Loss on Sale of Assets and Assumption of Liabilities		-
Income Tax Expense		0

NET INCOME (LOSS)	$	(55,203	)

Case No.10-12302 PJW

Reporting Period: July 1 through July 31, 2011

Capital Growth Systems, Inc.and Subsidiaries

Condensed Consolidated Statements of Operations

For the seven-month period ended July 31, 2011

(Unaudited)

	For the seven-month period ended July 31, 2011

REVENUES	$	19,787,589

COST OF REVENUES		14,744,883

GROSS MARGIN		5,042,706

OPERATING EXPENSES

Compensation		3,827,392
Travel and entertainment		379,722
Occupancy		787,017
Professional services		417,572
Insurance		133,335
Bad Debt Expense		82,931
Depreciation & Amortization		911,617
Restructuring Expenses		1,294,863
Other Expense (Income)	$	(264,139	)

TOTAL OPERATING EXPENSES		7,570,310

OPERATING INCOME (LOSS)		(2,527,604	)

Interest Expense		6,468,809
(Gain) Loss on Sale of Assets and Assumption of Liabilities		(35,343,123	)
Income Tax Expense		90,454

NET INCOME (LOSS)	$	26,256,256

Case No.10-12302 PJW

Reporting Period: July 1 through July 31, 2011

Capital Growth Systems, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

July 31, 2011

(Unaudited)

	July 31, 2011

ASSETS
CURRENT ASSETS
Cash	$	1,606,103
Accounts Receivable, net		0
Other Current Assets		3,426,012
Total Current Assets		5,032,115

Fixed Assets, gross		2,449,750
Accumulated Depreciation		(2,430,782	)
Fixed Assets, net		18,968


Other Assets		0
Intangible Assets		0
Goodwill		0


TOTAL ASSETS	$	5,051,083

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Current maturities of long-term debt	$	0
Post-Petition Accounts Payable		2,258,156
Pre-Petition Accounts Payable		0
Post-Petition Accrued Expenses		9,145,263
Pre-Petition Accrued Expenses		1,266,084
Deferred Revenue		0
Total Current Liabilities		12,669,503


Long-term debt		0
Taxes		0

Total Liabilities		12,669,503

SHAREHOLDERS' EQUITY (DEFICIT)
Common stock		17,015
Additional Paid in Capital		91,856,979
Retained Earnings, beginning of year		(125,359,811	)
Cumulative (gain) loss on currency translation		(388,859	)
Current Year Retained Earnings Inc/Loss		26,256,256

Total Equity		(7,618,420	)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$	5,051,083

Case No.

10-12302 PJW

Reporting Period: July 1 through

July 31, 2011

Capital Growth Systems, Inc.

Consolidated AP Aging Report (post-petition)

As of 7/31/2011

		Current				31-60				61-90				Over 90				Total
Total Trade Accounts Payable		$	47,138			$	0			$	11,802			$	2,199,216			$	2,258,156

Case No.

10-12302 PJW

Reporting Period: July 1 through

July 31, 2011

Capital Growth Systems, Inc.

Consolidated AR Aging Report (Gross Receivables)

As of 7/31/2011

		Current				1-30 Days				31 - 60 Days					61+			Total
Total Trade Accounts Receivables		$	0			$	0			$	0			$	0			$	0

CAPITAL GROWTH SYSTEMS INC /FL/ 8-K