MCI Welcomes North Carolina to the Neighborhood

For North Carolinians, The All-Inclusive, Any-Distance Service Offers An Unprecedented Phone Service Package On One Bill

ARLINGTON, Va.- July 10, 2002 - For years, most North Carolinians have not had a choice in their local phone service provider. That has now changed. Effective immediately, many North Carolina residents may join The Neighborhood built by MCISM, a new nationwide phone business that is revolutionizing the communications industry and is creating a new era of competition by unifying local and long-distance service.

"Since The Neighborhood launched in 32 states less than three months ago, more than half a million consumers have joined this ground-breaking service designed to unite historically separate local and long-distance services," said Wayne Huyard, Chief Operating Officer, MCI group (Nasdaq: MCITE). "Now, The Neighborhood built by MCI brings many North Carolinians freedom of choice, a revolutionary new service, a compelling new brand and establishes a new all-distance communications service."

ALL DOMESTIC CALLS ARE EQUAL

The Neighborhood is the first nationwide service to free callers from the constraints of per minute rates, time of day restrictions, and unnecessary boundaries between local and long-distance service. Consumers who select Neighborhood Complete will enjoy the convenience of a single company and a single invoice for all home phone service, the most popular calling features - Caller ID, Call Waiting, Voicemail, Three-Way Calling, and Speed Dial - and the ability to take advantage of free partner reward benefits, such as frequent flyer miles or movie video rentals.

The brand's flagship offering, Neighborhood Complete, is just $49.99 per month, plus applicable taxes and surcharges, in North Carolina. The entire U.S. effectively becomes one local calling area and the entire country becomes one neighborhood.

WORKING TO ACHIEVE THE VISION OF THE TELECOMMUNICATIONS ACT OF 1996

The Neighborhood built by MCI is the communications industry's first large scale, credible threat to the local phone monopolies' lock on the consumer calling market because it is the only enterprise to truly offer a fully integrated service across the country. With The Neighborhood now available in 34 states, MCI has become the first communications company to truly fulfill the vision of the "any-distance" future outlined by the Telecommunications Act of 1996.

"The launch of The Neighborhood continues to receive a very positive response from consumers across the country, clearly illustrating the pent-up desire for a truly competitive communications marketplace as originally envisioned in the Telecommunications Act of 1996," said Huyard. "Now, consumers in the original 32 launch states, plus the recent additions of North Carolina and New Jersey, ensure that more Americans are reaping the benefits of integrated, any-distance phone service as well."

HOW TO JOIN THE NEIGHBORHOOD

To join The Neighborhood, North Carolina residents should call 1-800-285-FREE or visit http://www.TheNeighborhood.com.

ABOUT MCI GROUP
MCI group (NASDAQ: MCITE), an operating unit of WorldCom, Inc., is a leading provider of residential voice, advanced messaging and commercial communications services. MCI group offers a robust portfolio of products, including local, international and long-distance voice services, advanced messaging, and wholesale voice, dial-up Internet and data services. For more information, go to http://www.mci.com.

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