MCI Challenges Anti-Competitive Illinois Rate Hike Plan

ASHBURN, Va., May 20, 2003 - If an SBC-engineered rate hike is allowed to take effect in Illinois, MCI will have no choice but to raise the rates of the company's popular local-and-long distance offerings, MCI said today.

In a joint filing with the U.S. District Court, MCI, AT&T and other competitive interests asked the court to block implementation of the new law and to bar SBC from charging the higher rates resulting from the law, which SBC shoved through the General Assembly in just four days. Today's request for a preliminary injunction follows on the heels of a joint lawsuit based on the merits of the new law filed by the companies last week.

"Without court action to block this anticompetitive law, Illinois consumers will face higher rates and fewer choices-it's that simple," said Wayne E. Huyard, President of MCI Mass Markets. "This special interest legislation was designed to do only one thing-further enrich SBC at the expense of Illinois consumers and SBC competitors."

The law doubles the wholesale rates that competitors pay SBC to lease portions of the public phone network to provide service and is a flagrant violation of the federal Telecommunications Act of 1996. The federal Telecommunications Act and Illinois' state telecom law mandate that SBC provide competitors access to the public phone network at cost, plus a reasonable profit for SBC.

"Since MCI entered the Illinois local phone market in 2000, we have learned that consumers have been hungry for an alternative to SBC. Unfortunately, if this new law is allowed to take effect, MCI will have no choice but to raise rates for our popular local-and-long distance offering, The Neighborhood," Huyard said. "Unfortunately, those harmed the most by SBC's rate-hike plan will be Illinois consumers."

Based on MCI's analysis, MCI will have to raise rates for The Neighborhood and all other products in roughly 66 percent of the state, including suburban Chicago and downstate Illinois. The remaining portions of the state also will see rate hikes for most products, and MCI will actually be forced to cease its marketing efforts in some parts of the states, Huyard said in a filing with the court.

About WorldCom, Inc.
WorldCom, Inc. (WCOEQ, MCWEQ), which currently conducts business under the MCI brand name, is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone and wholly-owned data networks, WorldCom develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to http://www.mci.com.