Thursday April 26, 2007

1Q’07 ResultsTELMEX - Webcast

This document contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should" and include, but are not limited to, statements about the expected future business and financial performance of TELMEX. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstance that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to political, economic, business, competitive, market, regulatory and other factors. Additional detailed information concerning these factors is readily available in TELMEX´s Form 20-F and other filings with the Securities and Exchange Commission. These documents are available on both the SEC's and TELMEX's web sites. We undertake no obligation to update publicly or review any forward-looking information, whether as the result of new information, future developments or otherwise.

Forward-looking statements disclaimer

Overall Results

during the quarter, the broadband and data businesses continued to grow, which resulted in our largest quarterly gain.

In Mexico, 1Q’07 results reflect the execution of our core strategies:

We are in the process of adding strategic assets in Latin America in order to consolidate our position and build our triple play offering.

Our 1Q’07 results illustrate that our strategies are working.

first,

second,

third,

we continued promoting and introducing new packaged services.

our profitable growth approach in the fixed lines business is anongoing practice.

Overall Results

• During the quarter, we added more than 300 thousand Infinitum accounts, bringing the total to 2.1 millionservices, 75.3% aheadof a year ago

60

101

1Q06 1Q07

(average customers per month in thousands)

Infinitum (ADSL) Customers

Q/Q= 68.3%

Data Business in Mexico

Expanding the broadband business is the future of telecom companies, and we certainly have made data growth a priority at TELMEX.

Overall Results

Data Business in Mexico

Currently, through our world-class network, we have the availability to provide broadband to around 94% of our customers

Strategies to enhance market penetration1st.

• TELMEX knows that one of the best ways to encourage use of the Internet is to make personal computers more accessible

• We offer customers attractive terms and up to three years to pay

• Over the last few years, this initiative has resulted in the sale of more than 1.1 million computers

• TELMEX also has donated more than 31 thousand computers

Overall Results

Data Business in Mexico

Currently, through our world-class network, we have the availability to provide broadband to around 94% of our customers

• During the quarter, we further reduced the price of our broadband offer to $26 pesos per equivalent access of 100 Kbps, with the objective of increasing the value proposition for our customers

• We will further adapt the price of our offer as technological improvements allows us to do so

2nd.Strategies to enhance market penetration

(thousands)

Total Billed Line Equivalents

Q/Q= 11.1%• Total billed line equivalents

increased 11.1%, but

• Revenues decreased 1.6% since competition has driven prices down

Overall Results

2,1132,347

1Q06 1Q07

In the Corporate Market

We are working closely with our customers to deliver high levels of service and in turn to receive payment for the value we provide them.

Overall Results

While the packages represent good value for our customers, they also benefit TELMEX. These packages improve customer retention, and we benefit from fixed monthly revenue flows.

Transition to Fixed Revenue Flows

• Packages combine broadband with voice services at a price that represents an advantage over buying these services separately

1.1

1.7

0.5

Service Packages(million units)

Local packages

Packages with ADSL

1Q’07

LD packages

Overall Results

Specifically, around 50% in segment A73% in segment B

100% in C-, D and E

Growth with Profitability

In the fixed-line business in Mexico, TELMEX competes with operators that are mainly focused on high-income market segments A and B, where TELMEX has a market share of approximately 66%.

TELMEX’s commitment for meeting demand has made us the only fixed-line operator in Mexico that has presence in homes of segments C-, D and E.

Market share

Overall Results

This strategy has allowed us to redirect capabilities while reducing the requiredinvestments.

… even when it is prudent to disconnect certain subscribers, we maintain our commitment to following our established customer care processes and to satisfying telecom needs.

Growth with Profitability

257

290

33

1Q07

(thousands)Connections / Disconnections

Connections

Disconnections

Net gain

Since the beginning of the year, we have continued to focus on growth with profitability.

In 1Q’07, we had 18.3 million lines in service.

Overall Results

Total CAPEX for the quarter was approximately 134 million dollars.

Growth with Profitability

In Mexico, our emphasis on CAPEX is on upgrading and adapting our network to provide all the current and future services required by our customers.

84%

11%5%Operating

needs and operational

support

Socialtelephony

Growth and modernization

Mexico CAPEX (%)

The increase in revenues was due to the 14% growth in Internetand 33% in interconnection, in addition to an increase of 41% in other revenues, mainly comprised of Tiendas TELMEX and Yellow Pages.

The introduction of domestic and international CPP services generated additional revenuesof 1.6 billion pesos.

31,543 32,574

1Q06 1Q07

(millions of Mexican pesos as of March 2007)

Mexico Revenues

Q/Q= 3.3%

Overall Results

Mexico’s Financial Performance

Costs increased 4.6% in the quarter due to an increase of 42% in interconnection costs related to the introduction of domestic and international CPP services.

If we eliminate this effect, costs would have decreased approximately 2.6%.

(millions of Mexican pesos as of March 2007)

Mexico Costs & Expenses

Overall Results

Mexico’s Financial Performance

19,745 20,644

1Q06 1Q07

Q/Q= 4.6%

Overall Results

Mexico’s Financial Performance

EBITDA and Margins (%)

16,37316,523

1Q06 Mex 1Q07 Mex

52.4% 50.3%

11,799 11,931

1Q06 Mex 1Q07 Mex

Operating Income and Margins (%)

37.4% 36.6%

(millions of Mexican pesos as of March 2007) and (%)

Q/Q= (0.9)%Q/Q= 1.1%

Overall Results

Our initiatives to face these challenges are:

• Focus on growth with profitability

• Evolve voice business

• Accelerate broadband and data revenues growth

• Develop personalized proposals

• Strengthen our relationship with corporate customers• Continue to evolve the telecommunications platform

in Mexico

Latin American Operations

We continue to look for opportunities to expand our presence through two basic strategies:

First,consolidating our existing assets.

Second,acquiring companies to build our triple play offering.

Latin American Operations

In Embratel, currently TELMEX holds 97.5% of this company, which confirms our commitment to further develop this market andto stay in the country for the long-term.

Net Fone is one of our most promising services to provide state-of-the-art triple play services to our Brazilian customers, we currently have more than 257 thousand triple play subscribers served by Net Serviços which represented a 42% increase over the last quarter subscribers and we are adding customers at a rate of 25 thousand per month.

Our goal is to provide a complete array of products for our customers that will strengthen our position in the region.

Latin American Operations

Through the acquisition of cable companies, our objective is to accelerate the deployment of triple play services and enhanceour competitive position in Latin America.

That is the case in Colombia, where this quarter we acquired Cablecentro and Satelcaribe, that along with Superview, TVcable and Cable Pacífico pass through almost 4 million homes.

Our first significant acquisitions in the Latin American market occurred just over three years ago.

Latin American Operations

In Chile, on March 20, we began to market broadband Internet access and telephony services through Chile first nationwide wireless network.

We offer telecom services using WiMax technology at attractive prices and providing our customers with different choices through packaged services, which is a proven marketing strategy at TELMEX.

Through this platform, small and medium-sized businesses will have access to wireless telephony and broadband Internet.

Additionally, in Chile, Peru and Argentina we are taking advantage of the 3.5 GHz frequency to serve the different markets in an integrated manner.

Latin American Operations Results

In Brazil

Local services and data continue to grow.

• Local customers “Livre” increased 32%

• Line equivalents increased 29%

Revenues:Total revenues increased 3.8%Local increased 37%Data business increased 3%

EBITDA margin reached 25%Operating margin was 11%

Latin American Operations Results

Other Operations in Latam

In the quarter, revenues from Chile, Argentina, Colombia and Peru.

Revenues increased 12.3% to104 million dollars.

The primary contributors were growth from data and local services revenues.

EBITDA margin of 23.4%

Consolidated revenuesincreased 2.5% from a year ago,

driven mainly by the increase of 13%on Internet access, long distance CPP interconnection and other revenues.

Total costs increased 4% in the quarter, due to the growth of interconnection charges.

Operating income and EBITDAhad slight decreases of 1.2% and 2.2%, respectively.

30,465 31,747

1Q06 1Q07

Consolidated Costs & Expenses

44,024 45,143

1Q06 1Q07

(millions of Mexican pesos as of March 2007)Consolidated Revenues

Q/Q= 2.5%

Q/Q= 4.2%

Consolidated Results

TELMEX’s comprehensive financing cost

generated a charge of 1.1 billion pesos, a decrease of 2.5% from last year’s first quarter, mainly due to higher interest expense because of the growth of debt, a lower exchange loss and a higher gain in the monetary position.

Consolidated Results

Net income(millions of Mexican pesos as of March 2007)

8,0448,780

1Q06 1Q07

Q/Q= 9.1%

Annual Meeting of Shareholders

I would like to remind you that our Annual Meeting of Shareholders will be held tomorrow where in addition to submit TELMEX’s financials for approval, our shareholders will consider two proposals:

•One is for a cash dividend payment of 45 Mexican cents per outstanding share in four equal payments of 11.25 Mexican cents per share, that represents an increase of 9% in peso terms and

•Increasing by 15 billion pesos the balance for the share buy back.

We continue to manage TELMEX for long-term shareholder value

Closing Remarks

We are evaluating opportunities to increase our presence in profitable markets without taking away from our commitment to provide telecommunications services to all market segments in Mexico

TELMEX is well positioned to compete successfully in the Mexicantelecommunications market as well as in Latin American markets

The building blocks to transform the company from a Mexican telephony company into a regional telecommunications service provider are in place

In Mexico, we are focused on accelerating broadband penetration to increase the ARPU per line

In Latin America, we are expanding our presence in a number of ways

The implemented strategies confirm our commitment,

to our customers — which we demonstrate every day by offering more and better services at attractive prices and with the required quality

to our shareholders — operating our assets in an efficient way with a profitability approach but preserving our solid financial position

Closing Remarks

We are well prepared to face the new challenges that our industry presents, and we are looking forward to continuing to thrive by turning those challenges into opportunities

Thursday April 26, 2007

1Q’07 ResultsTELMEX - Webcast