MCI WorldCom Reports Third Quarter 1999 Results

Cash Earnings Per Share of $0.71; Earnings Per Share of $0.56

CLINTON, MS (October 28, 1999) - MCI WORLDCOM, Inc. (NASDAQ:WCOM)
today reported third quarter earnings before goodwill amortization
("cash earnings") of $1.4 billion, or $0.71 per common
share. Reported net income, after goodwill amortization, was $1.1
billion, or $0.56 per common share. Reported net income, excluding
Embratel, for the third quarter 1999 was $1.1 billion, or $0.55 per
common share as compared with pro forma net income, excluding
Embratel and MCI merger related costs, of $359 million, or $0.19 per
common share for the third quarter 1998.

Improving economics -- as revenue mix continues to shift rapidly
to "distance-independent" revenues which bear no arbitrary
access charges imposed by incumbent local exchange carriers (ILECs)
-- combined with the achievement of better than expected cost savings
from the MCI merger are the primary drivers of the earnings
improvement. More than 75 percent of incremental communications
services revenues are now coming from non-traditional voice services
including data, Internet and international which represent three of
the fastest growing areas of communications services. These faster
growing services now comprise almost 40 percent of total revenues and
continue to drive overall top line growth.

Voice minutes for the quarter, on a pro forma basis, increased 12
percent year-over-year. Voice traffic is rapidly becoming a smaller
and smaller piece of total network volume. Internet usage on a pro
forma basis, as measured by connect hours, increased 83 percent
year-over-year. Voice Grade Equivalents (VGEs), which capture the
volume of local data circuits, increased 69 percent year-over-year.
Internet and data services consume much larger units of incremental
bandwidth and yield higher gross margins due to network efficiencies
and avoided access charges from ILECs.

Revenues for the third quarter, excluding Embratel, were $8.5
billion, up 11 percent as compared with $7.7 billion, on a pro forma
basis, for the third quarter of 1998. Service interruptions on a
frame relay network platform in the third quarter impacted revenues
by $29 million in service credits. Excluding these service credits,
on-going communications services revenues were $8.5 billion, an
increase of 16.6 percent compared with pro forma communications
services revenues of $7.3 billion for the third quarter of 1998.
Including Embratel, third quarter 1999 revenues were $9.2
billion.

Operating income for the third quarter 1999, excluding Embratel,
was $2.0 billion -- an increase of 218 percent compared with $641
million, before MCI merger related charges, on a reported basis for
third quarter 1998. On a pro forma basis, operating income was up 106
percent compared with $991 million for the same prior-year period.
Operating income for the third quarter 1999, including Embratel, was
$2.2 billion.

YEAR-TO-DATE HIGHLIGHTS

On a year-to-date basis, cash earnings were $3.5 billion or $1.82
per common share. Reported net income, after goodwill amortization
was $2.7 billion, or $1.38 per common share. Similarly, net income
excluding Embratel for year-to-date 1999 was $2.7 billion or $1.38
per common share as compared with pro forma net income before
charges, of $815 million, or $0.45 per common share for the first
nine months of 1998.

Reported revenues year-to-date, excluding Embratel, were $25.1
billion -- including $24.6 billion of communications services
revenues -- as compared with $8.5 billion for the first nine months
of 1998. Pro forma revenues for the first nine months of 1998 were
$22.4 billion -- including $21.1 billion of communications services
revenues. During April 1999, the Company divested the SHL business.
Accordingly, total revenues in 1999 include four months of SHL
results versus nine months in the 1998 pro forma period. Year-to-date
communications services revenues were up 16.6 percent, compared with
pro forma revenues for the same period of 1998. Including Embratel,
the Company reported revenues of $27.1 billion for the first nine
months of 1999.

Operating income, excluding Embratel, for the first nine months of
1999 more than doubled to $5.2 billion, compared with pro forma
operating income of $2.4 billion for the first nine months of 1998.
Operating income, including Embratel, for the first nine months of
1999 was $5.5 billion.

MANAGEMENT'S COMMENTS ON THE THIRD QUARTER

"We continue to anticipate and respond to rapid change in our
industry -- technology advances, regulatory change and most
significantly customer expectations," said Bernard J. Ebbers,
president and CEO of MCI WorldCom. "Through innovative marketing
and an unwavering focus on quality and cost controls we continue to
deliver products and services to our growing customer base, which are
both feature-rich and competitively priced. This winning formula,
once again, drove impressive gains in revenues and
earnings."

"Our early successes in selling bundled packages of services
on an end-to-end basis, including On-Net Services for businesses,
underscores the customers' desire to purchase
"all-distance" services from one provider. Customers --
consumers and businesses alike -- are seeking distance independent
packages of services with rates oriented towards bandwidth consumed,
not distance. Our substantial and timely investments -- in local
access, data, Internet, international and recently wireless --
favorably position the Company to meet these changing demands of our
customers."

COMMUNICATIONS SERVICES - PRO FORMA COMPARISON

MCI WorldCom's third quarter communications services revenues
in the chart below, excluding Embratel, assume the MCI merger
occurred as of the beginning of the earliest period presented. In
addition, the impact of the frame relay service credits has been
highlighted in the commentary but for comparison purposes not
included in the chart below.

Of the total $1.2 billion of incremental communications services
revenues for the third quarter -- more than three-quarters, or $915
million, of incremental revenues came from Internet, international
and data services. These fast growing communications services now
represent 39 percent of communications services revenues, or an
annualized revenue stream of $13.3 billion, up 38 percent from $9.6
billion, on a pro forma annualized basis, a year ago. Excluding
international services from these fast growing revenues, data and
Internet revenues represent an annualized revenue stream of $11.4
billion, or approximately one-third of communications services
revenues.

Domestic Voice revenues increased six percent for the quarter and
year-to-date. The initial uptake in customers purchasing
"all-distance" voice services from MCI WorldCom contributed
to voice revenues growing faster than market growth. This innovative
marketing, combined with aggressive pricing in both consumer and
business markets also contributed to this favorable performance, as
traffic volume gains more than offset pricing declines. These volume
and revenue gains were offset partially by anticipated year-over-year
declines in carrier wholesale traffic. Implementation of access
charge reforms along with declining network costs facilitated the
reduction in pricing, without impacting gross margins.

Domestic Data revenues increased 28 percent for the quarter and 29
percent year-to-date. During the quarter, the Company experienced
intermittent service interruptions on one of its frame relay network
platforms. Adhering to its industry leading service guarantees, the
Company credited all customers on this platform at a rate of two days
of service for every one day of possible service disruption. This
resulted in a $29 million non-recurring impact on data revenues,
which has been separately identified as an offset to other
revenues.

Internet revenues for the third quarter were $924 million, an
increase of 57 percent over the pro forma third quarter of 1998. For
the nine months year-to-date, Internet revenues were up 59 percent to
$2.5 billion. Internet revenues now represent more than ten percent
of communications services revenues, up from eight percent a year
ago. The Company continues to increase the capacity and expand the
reach of its global Internet network in response to the increasing
transport requirements of both its commercial and wholesale accounts.
The dial access network is up more than 80 percent to 1.4 million
modems, compared with the same period in the prior year.

International revenues -- those revenues originating outside of
the U.S. -- were up 54 percent to $464 million for the quarter, an
annualized run rate of approximately $1.9 billion. During the
quarter, the Company continued to extend the reach of its end-to-end
networks boosting the Company's international building count to
8,500 buildings -- all over high capacity circuits.

OTHER REVENUES

Other revenues for the third quarter of 1999 were $19 million
prior to being impacted by the frame relay service credits of $29
million. The negative $10 million of other revenues compares with
$356 million for the prior year third quarter. Other revenues
represent SHL revenues for the third quarter of 1998.

PRO FORMA COMPARATIVES

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

As a percent of revenues, EBITDA margin for the third quarter of
1999 was 35.1 percent and operating income was 23.9 percent, compared
with 25.2 percent and 12.9 percent, respectively, for the prior year
period. For the first nine months of 1999 EBITDA margin was 32.2
percent and operating income was 20.7 percent, compared with 24.0
percent and 10.8 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 an 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, third quarter other income and expense
included $214 million of interest expense and miscellaneous income of
$71 million. Miscellaneous income includes $31 million of interest
and dividend income and $40 million of MCI WorldCom venture fund
investment gains and other items.

SKYTEL MERGER

On October 1, 1999, MCI WorldCom closed the merger with SkyTel
Communications, Inc. (SkyTel). Under the terms of the agreement
holders of SkyTel common stock received 0.2566 shares of MCI WorldCom
common stock for each share of SkyTel common stock.

SkyTel results will be consolidated with MCI WorldCom on a
pooling-of-interests basis beginning with the fourth quarter of
1999.

SPRINT MERGER

On October 5, 1999 MCI WorldCom and Sprint announced a definitive
merger agreement creating the pre-eminent global communications
company for the 21st century. The combined company, to be called
WorldCom, will provide a full range of services to residential and
business customers on its owned, end-to-end, state-of-the-art network
infrastructure. WorldCom will be a leader in the fastest growing
areas of global communications services, offering innovative
broadband, "all-distance" services to businesses and homes,
and nationwide digital wireless voice and data services.

The merger is subject to the approvals of MCI WorldCom and Sprint
shareholders as well as approvals from the Federal Communications
Commission, the Justice Department, various state government bodies
and foreign antitrust authorities. The companies anticipate that the
merger will close in the second half of 2000.

EDS OUTSOURCING AGREEMENTS

On October 25, 1999 MCI WorldCom and EDS announced the
finalization of dual outsourcing agreements. The two agreements
implement key aspects of the strategic business relationship the
companies announced last February.

OUTLOOK

Commenting on the outlook for MCI WorldCom, Ebbers said,
"Similar to what we have seen in the business markets over the
past several years, broadband access is beginning to challenge
pricing as the number one priority for households. Mandated access
charge reductions will continue to drive more favorable voice pricing
for consumers; however, the most innovative and successful service
providers will lead with a mix of broadband access and
"all-distance" services.

"The investments we have and continue to make in our global
networks clearly position us for the changing competitive model as
evidenced by our improving margins and cash earnings. Our proven
ability to lead the industry with innovative marketing and
competitive pricing, while delivering superior financial performance,
gives us confidence in our ability to continue to achieve exceptional
returns for our shareholders."

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
more than 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, Internet and wireless messaging 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 45,000 buildings
worldwide. On October 5, 1999, MCI WorldCom and Sprint announced a
definitive merger agreement. Following regulatory and shareholder
approvals, the Company expects the merger to be closed in the second
half of 2000. MCI WorldCom is traded on NASDAQ under WCOM. For more
information on MCI WorldCom, visit the World Wide Web at
http://www.wcom.com

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