Nortel Networks Expands Relationship With MCI WorldCom

Multi-Million Dollar Contract Extension Includes Local, Data
and Internet Services

JACKSON, MS, May 19, 1999 -

MCI WorldCom (NASDAQ: WCOM) today announced a multi-million dollar
communications services contract extension with Nortel Networks (NYSE:
TSE: NT), a global leader in telephony and IP-based data, wireline and
wireless networking.

"MCI WorldCom has a proven track record of successfully
supporting our voice and data requirements," said Keith Powell,
chief information officer, Nortel Networks. Their leading edge
technology, world class support, and competitive rates will continue to
play a critical role in our network growth."

Under the terms of the contract, MCI WorldCom will supply Nortel
Networks with Virtual Private Network Services in the U.S. and
globally, calling card, toll free, audio and video conferencing, local,
Internet and access services. In addition, MCI WorldCom will provide
Nortel Networks with high-speed connectivity to their remote offices
through data and private line services.

"As one of Nortel Network's primary communications services
providers, we are excited about our thriving relationship with such an
industry pioneer and leader," said Bob Hartnett, president, MCI
WorldCom Global Accounts.

Nortel Networks works with customers worldwide to design, build, and
deliver telephony and IP-optimized networks. Customers include public
and private enterprises and institutions; Internet service providers;
local, long-distance, cellular and PCS communications companies; cable
television carriers; and utilities. Nortel Networks' common shares
are listed on the New York, Toronto, Montreal, Vancouver, and London
stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion
and has approximately 75,000 employees worldwide.

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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