MCI WorldCom Reports Second Quarter 1999 Results

CLINTON, MS (July 29, 1999) - MCI WorldCom, Inc. (NASDAQ:WCOM)
today reported second quarter revenues, excluding Embratel, of $8.3
billion. On a pro forma basis, excluding Embratel, second quarter
core communications services revenues increased 16 percent from $7.0
billion in 1998 to $8.1 billion in 1999. Strong gains in Internet,
international and data communications services, combined with the
impact of the MCI merger, drove the year-over-year increase in
reported revenues from $2.6 billion for the second quarter of 1998.
Including Embratel, total second quarter 1999 revenues were $8.9
billion.

Voice minutes, on a pro forma basis, increased ten percent
year-over-year. Internet volume on a pro forma basis, as measured by
connect hours, increased 84 percent to over 974 million hours as
compared with the second quarter 1998. Voice Grade Equivalents
(VGEs), which capture the volume of local data circuits, increased 77
percent to 23.6 million VGEs.

Reported net income, excluding Embratel, for the second quarter
1999 was $857 million, or $0.44 per common share. Including Embratel,
net income was $863 million, or $0.45 per common share. For second
quarter 1998, reported net income was $221 million, or $0.21 per
common share. On a pro forma basis, assuming the MCI merger and the
CNS/ANS transactions occurred at the beginning of the earliest period
presented, comparative net income for the second quarter 1998 was
$287 million, or $0.16 per common share. The increases in net income
are attributable to a richer mix of revenues, achievement of merger
synergies and operating margin leverage against the fixed level of
annual amortization of goodwill. Excluding the impact of goodwill, as
proposed by the FASB, net income before goodwill amortization rose to
$0.59 per common share in the second quarter 1999.

Operating income for the second quarter 1999, excluding Embratel,
was $1.7 billion -- an increase of 246 percent compared with $495
million, before charges, on a reported basis for second quarter 1998
and an increase of 108 percent compared with $826 million, on a pro
forma basis, for the same prior year period. Operating income for the
second quarter 1999, including Embratel, was $1.8 billion.

YEAR-TO-DATE HIGHLIGHTS

On a year-to-date basis excluding Embratel, MCI WorldCom reported
revenues of $16.6 billion including $16.0 billion of communications
services revenues as compared with $4.9 billion for the first six
months of 1998. On a comparable, or pro forma basis, revenues for the
first six months of 1998 were $14.7 billion, including $13.8 billion
of communications services revenues. Year-over-year, for the first
six months, communications services revenues were up 17 percent.
Including Embratel, the Company reported revenues of $17.9 billion
for the first six months of 1999.

Reported year-to-date net income, excluding Embratel, for the
first six months of 1999 was $1.6 billion or $0.82 per common share
compared with net income, before charges, of $407 million, or $0.39
per common share for the comparable six month period in 1998. Pro
forma net income, excluding Embratel and before charges, for the
first six months of 1998 was $456 million, or $0.25 per common share.
Including Embratel, net income for the first six months of 1999 was
$1.6 billion, or $0.81 per common share.

Operating income, excluding Embratel, for the first six months of
1999 more than doubled to $3.2 billion, compared with pro forma
operating income of $1.4 billion for the first six months of 1998.
Operating income, including Embratel, for the first six months of
1999 was $3.3 billion.

MANAGEMENT'S COMMENTS ON THE SECOND QUARTER

"The Company continues to execute on or ahead of plan with
respect to merger synergies and the diversification of
revenues," said Bernard J. Ebbers, president and CEO of MCI
WorldCom. "Our communications services revenue growth is being
driven by continued strong top line performance in data, Internet and
international -- three of the fastest growing and most profitable
areas within communications services. Strength in business and
consumer voice services, from a retail perspective, more than offset
the anticipated year-over-year declines in carrier wholesale voice
traffic.

"More impressive though, was the strong pace of improvement
in our earnings, margins and cash flow. Our rapidly improving
profitability, combined with the recent divestitures of non-core
assets, has provided us the financial flexibility to pursue other
high growth communications services opportunities, such as our recent
investments in wireless data services companies including CAI
Wireless, Wireless One, Prime One, Metricom and SkyTel."

COMMUNICATIONS SERVICES - PRO FORMA COMPARISON

MCI WorldCom's second quarter communications services revenues
in the chart below, excluding Embratel, assume that the MCI merger
and the acquisitions of CNS and ANS occurred as of the beginning of
the earliest period presented.

Of the total $1.1 billion of incremental communications services
revenues for the second quarter -- over 76 percent, or $865 million,
of incremental revenues are coming from Internet, international and
data services. These fast growing communications services now
represent over 37 percent of communications services revenues, or an
annualized revenue stream of $12.2 billion, up over 40 percent from
$8.7 billion, on a pro forma annual basis, a year ago. Excluding
international services from these fast growing revenues, data and
Internet revenues represent an annualized revenue stream of $10.5
billion, or approximately one-third of communications services
revenues.

Domestic Voice revenues increased six percent for the quarter and
year-to-date. Solid long distance volume gains in business sales
channels, combined with an increasing mix of local services, were the
primary contributors to the increase for the second quarter. These
volume gains were offset partially by anticipated year-over-year
declines in carrier wholesale traffic, competitive pricing, access
charge reform pass throughs and changing product mix.

Domestic Data revenues increased 29 percent for the quarter and 30
percent year-to-date. The particularly strong revenue growth for
private line, frame relay, and ATM services continues to be fueled by
tremendous commercial end-user demand for high-speed data and
Internet-related growth on both a local and long-haul basis. In
addition to the 77 percent increase in local Voice Grade Equivalents,
MCI WorldCom has achieved one of the widest deployments of data
switches with approximately 1,500 combined frame relay and ATM
switches in service. This broad deployment drives an industry leading
low-cost structure as the Company is able to minimize backhaul
requirements for customer traffic.

Internet revenues for the second quarter were $836 million, an
increase of 59 percent over the pro forma second quarter of 1998. For
the six months year-to-date, Internet revenues were up 60 percent to
$1.6 billion. Internet revenues now represent over 10 percent of
communications services revenues, up from 7.5 percent, a year ago.
The Company has increased the capacity of its global Internet network
to OC-48 in response to the increasing backbone transport
requirements of both its commercial and wholesale accounts. The dial
access network is up over 70 percent to 1.2 million modems, compared
with the same period in the prior year.

International revenues -- those revenues originating outside of
the U.S. -- were up 56 percent to $420 million for the quarter - an
annualized run rate of approximately $1.7 billion. During the
quarter, the sequential increase in buildings connected of
approximately 1,000 buildings boosted the Company's international
building count to over 7,500 buildings -- all over high capacity
circuits. The recent increases in sales force and increased reach of
the data networks boosted sequential international revenue growth to
$63 million -- the highest sequential dollar gain achieved to date in
international -- in spite of a competitive pricing environment.

OTHER REVENUES

Other revenues for the second quarter of 1999 were $120 million
compared with $477 million on a pro forma basis for the second
quarter 1998. Other revenues represent SHL revenues of $120 million
for a partial month in the second quarter of 1999, versus three
months in 1998. The previously announced sale of SHL to EDS closed on
April 22, 1999.

PRO FORMA COMPARATIVES

In order to compare year-over-year internal growth, the following
table reflects pro forma amounts as if the MCI merger and the CNS/ANS
transactions occurred as of the beginning of the earliest period
presented, before merger and extraordinary charges and excluding
Embratel:

As a percent of revenues, EBITDA margin for the second quarter of
1999 was 32.3 percent and operating income was 20.8 percent, compared
with 24.1 percent and 11.0 percent, respectively, for the prior year
period. On a year-to-date basis, EBITDA margin for the first six
months of 1999 was 30.7 percent and operating income was 19.1
percent, compared with 23.3 percent and 9.7 percent, respectively,
for the comparable period in 1998. The improvement in operating
income is due to the realization of merger synergies, a focus on --
and improving mix of -- higher margin revenues, and the operating
leverage related to a fixed quarterly level of amortization
expense.

NON-OPERATING INCOME (EXPENSE)

Excluding Embratel, second quarter other income and expense
included $236 million of interest expense and miscellaneous income of
$39 million. Miscellaneous income includes $21 million of interest
income and $15 million of quarterly preferred dividends on News Corp
stock.

Interest expense improved in the second quarter from the SHL sale
proceeds of $1.39 billion. Subsequent to the balance sheet date, in
July, the Company received $1.4 billion in proceeds from the sale of
News Corp stock which will reduce third quarter interest expense and
miscellaneous income (dividends no longer received) by approximately
$17 million and $15 million, respectively.

SKYTEL MERGER

On May 28, 1999, MCI WorldCom announced a definitive merger
agreement with SkyTel Communications, Inc. (SkyTel). Under the terms
of the agreement, holders of SkyTel common stock will be entitled to
receive 0.25 shares of MCI WorldCom common stock for each share of
SkyTel common stock. The merger is expected to be completed in the
Fall of 1999, following a SkyTel special stockholder meeting to vote
on the proposed merger, scheduled for September 22, 1999.

OUTLOOK

Commenting on the outlook for MCI WorldCom, Ebbers said, "The
strong pace of improvement in our earnings, margins and cash flow
combined with a balance sheet that has arguably never been stronger
puts us in an enviable position. Not only do we have the right
network assets, but our focus on the fastest growing and most
profitable services bodes well for future profitability. Our recent
investments in wireless data, along with our aggressive capital
expenditure plans, reinforce our confidence in our ability to grow
revenues and sustain earnings growth for the foreseeable
future."

FORWARD LOOKING STATEMENTS

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, uncertainties
associated with the success of acquisitions and the integration
thereof, risks of international business, the impact of technological
change on the Company's business and dependence on availability
of transmission facilities, regulation risks including the impact of
the Telecommunications Act of 1996, contingent liabilities, the
impact of competitive services and pricing, risks associated with
year 2000 uncertainties and Euro conversion efforts, as well as other
risks referenced from time to time in the Company's filings with
the Securities and Exchange Commission. 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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