December 2010
Fair Market Value Assessment of Telemedia
A Report for Belize Telemedia Limited

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On August 25th, 2009 the Government of Belize acquired ownership through majority
shareholding of Belize Telemedia Limited ("Telemedia"). An interim board was appointed
by the Government to take control of Telemedia. The board will manage and regulate the
affairs of the Group until a new Board of Directors is appointed pursuant to the Company's
Articles of Association.

The Government of Belize and Telemedia have commissioned NERA Economic Consulting
("NERA") to provide a fair market value (FMV) assessment of Telemedia's shares as of 31
August 2009 ("Valuation Date"), shortly after the Government of Belize acquired the
company. Our fair market value opinion expressed in this report will be used to assess the
financial settlement with the previous shareholders. The authors of this report will testify on
this report, and/or to provide a rebuttal report on other opposing witness testimony.
We have relied upon data and information provided to us by Telemedia, such as audited
financial statements and past Business Plans of Belize Telemedia Limited and its
predecessors. We conducted our FMV assessment in accordance with valuation principles
generally accepted in the economic and financial literature.

The remainder of this report is structured as follows:

- Section 2 provides the relevant background to our assessment of Telemedia's FMV;
- Section 3 sets out our valuation methodology;
- Section 4 sets out our revenue forecasts;
- Section 5 sets out our cost forecasts;
- Section 6 sets out our free cash flow forecasts;
- Section 7 set out our forecast of Telemedia's continuing value;
- Section 8 shows our WACC calculation used in our valuation model; and
- Section 9 sets out our assessment of the FMV of Telemdia's shares.

Our report qualifications and assumptions are set out in Appendix C.