CLINTON, Miss. September 25, 2001 WorldCom (NASDAQ: WCOM), the
leading global business data and Internet communications provider,
today announced that it has filed in the U.S. Bankruptcy Court a bid
for key Rhythms DSL assets. If approved by the Court, WorldCom would be
enabled to continue, and enhance, delivery of the business-class DSL
services, currently provided on the Rhythms network, that WorldComs
data and Internet customers have used for some time. The deal would
provide full continuity in WorldComs provision of its DSL products and
it would bolster WorldComs portfolio of facilities-based broadband
access methods.
Under the terms of the bid, WorldCom would purchase a portion of the
Rhythms assets for $40 million, which would include so-called
debtor-in-possession (DIP) financing sufficient to sustain Rhythms
network operations for the portion of the network that WorldCom is
acquiring. The acquired assets would include only facilities where
WorldCom already has a significant DSL customer base enabling WorldCom
to even better support its IP-VPN and frame relay offerings.
Financially, the transaction would not impact positive free cash flow.
ABOUT WORLDCOM, INC.
WorldCom, Inc. (NASDAQ: WCOM, MCIT) is a preeminent global
communications company for the digital generation, generation d,
operating in more than 65 countries with 2000 revenues of approximately
$35 billion. WorldCom provides the innovative technologies and services
that are the foundation for business in the 21st century. For more
information, go to
http://www.worldcom.com
.
