Agreement is Key Step Toward Regulatory Approval of Transaction
CLINTON, Miss., November 17, 2000 - WorldCom, Inc. (NASDAQ: WCOM) today announced an agreement with the U.S. Department of Justice that significantly advances regulatory approval of the WorldCom-Intermedia merger.
Under the terms of a consent decree filed with the federal district court in Washington, WorldCom has agreed to sell all of Intermedia's assets, except for its controlling interest in Digex, a leading provider of managed web and application hosting services, within six months after the close of the merger. During that time, WorldCom will operate Intermedia as a separate business.
"We have fully addressed the concerns of the Department of Justice and look forward to working with the Federal Communications Commission and various state regulatory commissions to gain their approval as well." said Michael Salsbury, WorldCom general counsel.
On Sept. 5, WorldCom and Intermedia (NASDAQ: ICIX) announced the signing of a definitive merger agreement. WorldCom's acquisition of Intermedia's controlling interest in Digex (NASDAQ: DIGX) will fuel WorldCom's web hosting expansion by providing a comprehensive portfolio of mission critical hosting products and services for mid- and large-sized businesses. It will also increase competition and innovation in the high-end web and application hosting space through a stronger Digex.
The companies expect WorldCom's acquisition of Intermedia to close early in 2001. The boards of directors of Intermedia and WorldCom have already approved the proposed transaction.
WorldCom (NASDAQ: WCOM) is a preeminent global communications company for the digital generation, operating in more than 65 countries. Global revenues in 1999 were $36 billion, with $15 billion from high-growth data, Internet and international services. WorldCom provides the innovative technologies and services that are the foundation for business in the 21st century. For more information go to http://www.wcom.com
