MCI Counters AT&T Objection to Chapter 11 Reorganization Plan

Preliminary Review Suggests Self-interest, Not Facts Driving AT&T's Claims ASHBURN, Va., August 4, 2003 - Preliminary review of MCI's (WCOEQ, MCWEQ) ongoing internal analysis shows that its call termination practices comply with legal and regulatory requirements and AT&T claims to the contrary have been made solely for competitive gain, MCI said today. In a filing with the U.S. Bankruptcy Court for the Southern District Court of New York, MCI said that a July 28 AT&T filing objecting to the company's Plan of Reorganization is baseless and designed to "delay and derail" MCI's reorganization efforts. MCI's response is based on the company's analysis and a preliminary review conducted by the law firm of Gibson, Dunn & Crutcher LLP. AT&T's motives for making these allegations are unmistakable, and its filing is "a misuse of the bankruptcy process," MCI said. "We fully expect that AT&T will escalate its efforts to attempt to obstruct the Company's reorganization efforts, and urge that any such tactics be viewed in the highly-charged competitive environment evident in this case." Because AT&T's allegations are "demonstrably false and do not bear upon the Company's proposed plan of reorganization," the Court should dismiss AT&T's objection, MCI said. In its filing, MCI countered AT&T's specific legal claims:

• MCI's contract with Onvoy - a provider of "least-cost routing" services - was "completely legal and commonplace" and there is nothing even remotely illegal about Onvoy routing of domestic traffic via Canada. In fact, MCI took specific contractual steps to assure that no deception could take place, and AT&T has publicly confirmed that it engages in the same types of arrangements;
• MCI does not and has not itself routed traffic through Canada (though there would be nothing illegal about such a practice if it did), contrary to AT&T's false assertions;
• Claims by AT&T that MCI has avoided the costs of access charges and that AT&T is not fairly compensated for its role in terminating traffic both are false; and
• MCI has certain government contracts that require it to carry classified traffic in a secure manner and none of that traffic is or was routed through Onvoy. "AT&T's invocation of the ‘national interest' is a transparent attempt to promote its corporate interest in shutting down one of its competitors by publishing malicious fabrications," MCI said.

MCI noted that, on several occasions, it has requested that AT&T produce any documents, witnesses or other evidence to support its allegations so that the company can fully investigate AT&T's claims but AT&T has declined. "That response underscores AT&T's true motivation here, which is not to assure that any challenged improper practices are corrected, but rather to delay and derail the company's reorganization efforts," MCI said. As the company has stated, it is working vigorously to conduct a complete internal review and has pledged to its customers and the public that it will do the right thing and ultimately let the facts speak for themselves. 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, based on company-owned POPs, 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.