MCI WorldCom Reports Fourth Quarter 1998 Results

JACKSON, MS (February 11, 1999)

- MCI WORLDCOM, Inc. (NASDAQ:WCOM) today reported fourth quarter
revenues, excluding Embratel, of $8.0 billion which was quadruple the
fourth quarter 1997 revenues of $2.0 billion. Robust internal growth
combined with the substantial impact of both the MCI merger and the
CNS/ANS transactions included for the fourth quarter 1998, drove the
year-over-year increase in reported revenue. Including Embratel,
total fourth quarter revenues were $9.0 billion.

On a pro forma and comparative basis, assuming the acquisitions of
CNS, ANS and MCI occurred as of the beginning of the year for both
periods -- which is indicative of internal growth -- communications
services revenues, which comprises voice, data, international and
Internet, increased 17 percent from $6.5 billion to $7.6 billion.
Traffic, on a pro forma basis, increased 13 percent
year-over-year.

"We have intensified our focus on what we do best -- provide
core communications services. Including today's announcement with
EDS, over the past year we have shed virtually all of our
non-communications services businesses," said Bernard J. Ebbers,
president and chief executive officer of MCI WorldCom.

"Strong revenue gains across all communications services
combined with the first phases of network and SG&A synergies
drove the stronger than anticipated earnings performance. We
accelerated our capital spending in the fourth quarter particularly
in international and next generation network deployment which should
not only sustain future revenue growth but also drive significant
cost reductions across all communications services," added
Ebbers.

Reported net income for the fourth quarter 1998, excluding
Embratel, was $428 million, or $0.23 per common share, compared with
reported net income of $95 million, or $0.10 per common share, in the
fourth quarter of 1997. Reported net income for the full year 1998,
excluding the merger related charges, was $1.07 billion or $0.81 per
common share. After merger related and R&D charges from previous
quarters, the net loss for the full year 1998 was $2.7 billion.

FOURTH QUARTER AND FULL YEAR PRO FORMA REVENUES

For internal growth comparison purposes, the following pro forma
illustration includes CNS, ANS and MCI from the beginning of the
earliest period presented. These tables do not include Embratel or
the sold InternetMCI division. The impact of discontinued or sold
businesses including SHL have been indicated in prior year figures to
reflect revenue growth on a comparative basis. These amounts appear
in the "Recasted Revenues" line, which now are virtually
the same as the Communications Services line.

COMMUNICATIONS SERVICES

MCI WorldCom reported pro forma fourth quarter communications
services revenues, excluding Embratel, of $7.6 billion and
year-to-date communications services revenues of $28.7 billion, in
both cases, an increase of 17 percent, as compared with the same
periods in 1997.

Voice revenues, representing 62 percent of total revenues grew
eight percent to $5.0 billion, for the fourth quarter. On a full year
basis, voice revenue was $19.5 billion, up nine percent as compared
with $17.9 billion for the comparable period in 1997.

Growth in voice traffic is particularly evident in the business
markets where MCI WorldCom's ability to provide competitive
prices and services over a high quality network is driving strong
growth from commercial sales. On the consumer side, the company
continues to market a range of integrated services, promote
transaction brands and leverage partner marketing programs to improve
customer retention.

Local voice revenues grew over 80 percent for the full year 1998
as compared with 1997 and represents two percent of voice
revenues.

Data

revenues increased 29 percent to $1.6 billion for the fourth quarter
1998. Full year data revenues of $5.8 billion were up 28 percent as
compared with 1997. Virtual data services, including frame relay and
ATM services, combined with continued strength in private line sales
are driving overall revenue growth.

Rapidly growing demand for higher bandwidth services is driving
local data revenue growth of over 40 percent for the full year 1998
as compared with 1997. This growth, correlating to the jump in local
building connections and a 65 percent increase in voice grade
equivalents, is an early indication of the impact that electronic
commerce and other advanced data applications are having on data
communications services revenues.

Internet

revenues increased 61 percent and 69 percent to $658 million and
$2.2 billion for the fourth quarter and full year ended December 31,
1998, respectively. Revenues from MCI's former Internet business
have been excluded in all periods because of the divestiture.

UUNET continues to be an industry leader in network deployment and
revenue growth, and has begun to leverage the systems integration
expertise provided by MCI WorldCom Advanced Networks (CNS/ANS) for
large corporate intranet applications. These organizations will all
take advantage of the strong UUNET global identity in 1999.

International

revenues were up 55 percent to $328 million for the fourth quarter
and up 56 percent to $1.1 billion for the full year ended December
31, 1998 as compared with the same periods in 1997, respectively.

Significant percentage gains in international revenues are being
achieved in continental Europe in response to our rapidly expanding
networks and sales effort. The pan-European networks and national
networks in the U.K., France, Germany and Belgium are driving a much
higher proportion of enhanced data sales, internationally. This
revenue mix shift is contributing to the improving margins, in spite
of the competitive pricing environment.

INFORMATION TECHNOLOGY AND OTHER

IT Services, which consists primarily of the operations of MCI
Systemhouse, includes equipment deployment, consulting and systems
integration and outsourcing services. These revenues decreased 20
percent and 13 percent to $410 million and $1.7 billion for the 3
months and full year ended December 31, 1998 respectively, over
comparable periods in 1997. Excluding the impact of Canadian exchange
rates and the businesses previously exited by MCI Systemhouse (SHL),
revenues were essentially flat year-over-year and up a strong 12
percent sequentially from third quarter 1998.

Earlier today, MCI WorldCom and EDS Corporation announced the
signing of definitive agreements to sell MCI Systemhouse (SHL) to EDS
for $1.65 billion. In addition, both companies agreed to significant
outsourcing contracts which will capitalize on the individual
strengths of each company. The definitive agreements for these
outsourcing contracts will be finalized in the second quarter of
1999.

GLOBAL INVESTMENTS

Embratel

On July 29, 1998, MCI WorldCom acquired a 52 percent voting
interest and 19 percent economic interest in Embratel Participacoes
S.A. (Embratel), Brazil's only facilities-based national
communications provider. At closing $900 million of the purchase
price was paid in U.S. dollars with the remaining purchase price
(approximately 60%) to be paid in installments of local currency
prior to July 29, 2000. Embratel results have been consolidated with
MCI WorldCom from the date of the MCI merger closing on September 14,
1998. On a standalone basis, Embratel pro forma financials are as
follows:

Avantel

Avantel, MCI WorldCom's Mexican joint venture company, has
close to 10 percent of the addressable long distance market. The
company continues to expand its base in the business market, winning
a number of key new corporate and government contracts and growing
its share of higher-margin services such as data and Internet
services. Avantel continues to work closely with Mexican regulatory
bodies to reduce interconnection charges and discriminatory practices
that are hindering true competition in the Mexican telecommunications
market. For the fourth quarter, equity losses in Avantel were
approximately $21 million.

OUTLOOK

Commenting on the company's outlook, Ebbers added: "With
the merger integration efforts successfully underway and our
heightened focus on our core communications services, we are
confident in our ability to deliver on our financial targets in 1999
and beyond.

"Our capital investments in new markets, combined with
technology advances which will continue to drive down our network
costs as a percent of revenues, give us confidence in our ability to
grow revenues profitably. We are attacking new and fast-growing
markets such as the $100 billion U.S. local market, the $500 billion
international market and the over $50 billion rapidly expanding data
and Internet market. In this golden age of communications, MCI
WorldCom, with just four percent of the global market, is well
positioned in the fastest growing segments of the business,"
said Ebbers.

FORWARD LOOKING STATEMENT

Except for the historical information contained herein, this news
release may be deemed to include forward-looking statements that
involve risk and uncertainty, including financial, regulatory
environment and trend projections. Although the company believes that
its expectations are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. The important
factors that could cause actual results to differ materially from
those in the forward-looking statements herein (the "Cautionary
Statements") include, without limitation, the company's
degree of financial leverage, risks associated with debt service
requirements and interest rate fluctuations, risks associated with
acquisitions and the integration thereof, risks of international
business, dependence on availability of transmission facilities,
regulation risks including the impact of the Telecom Act, contingent
liabilities, and the impact of competitive services and pricing, as
well as other risks referenced from time to time in the company's
filings with the SEC. All subsequent written and oral forward-looking
statements attributable to the company or persons acting on its
behalf are expressly qualified in their entirety by the Cautionary
Statements. The company does not undertake any obligation to release
publicly any revisions to such forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.

MCI WorldCom is a global leader in communications services with
1998 revenues of more than $30 billion and established operations in
over 65 countries encompassing the Americas, Europe and the
Asia-Pacific regions. MCI WorldCom is a premier provider of
facilities-based and fully integrated local, long distance,
international and Internet services. MCI WorldCom's global
networks, including its state-of-the-art pan-European network and
transoceanic cable systems, provide end-to-end high-capacity
connectivity to more than 40,000 buildings worldwide. MCI WorldCom is
traded on NASDAQ under WCOM. For more information on MCI WorldCom,
visit the World Wide Web at
www.wcom.com

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