EUROTELECOM COMMUNICATIONS INC. AND SUBSIDIARIES
Consolidated Financial Statements
December 31, 1998
C O N T E N T S
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders of EuroTelecom Communications Inc. and subsidiaries:
We have audited the accompanying consolidated balance sheets of EuroTelecom Communications Inc. and
subsidiaries (formerly ATNN, Inc.) as of December 31, 1998 and 1997 and the related consolidated statements
of operations, consolidated stockholders' equity and consolidated cash flows for years ended December 31,
1998, 1997, 1996. These consolidated financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that
we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of EuroTelecom Communications Inc. and subsidiaries as of December 31, 1998 and 1997 and
the results of its operations and cash flows for the years ended December 31, 1998, 1997, and 1996 in
conformity with generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming that the Company will
continue as a going concern. As discussed in Note 4, the Company's recurring operating losses and lack of