WorldCom Group First Quarter 2001 Revenues Up 12 Percent, Achieving Growth Targets and Delivering Solid Results.

WorldCom, Inc. Reports First Quarter Cash EPS Of 35 Cents.

CLINTON, Miss., - April 26, 2001 - WorldCom, Inc. (NASDAQ:WCOM), the leading global digital and data communications provider, today announced financial results for the quarter ended March 31, 2001.

In the first quarter, WorldCom recognized after-tax charges of $76 million for domestic severance packages and other costs associated with previously announced workforce reductions. Of these charges, $47 million and $29 million were attributable to the WorldCom group and the MCI group, respectively. In addition, the Company incurred $94 million of expenses resulting from the impact of foreign currency exchange on Embratel, WorldCom's Brazilian communications company. The discussion in this release excludes these items.

WORLDCOM GROUP RESULTS

WorldCom group, which includes the Company's high-growth data, Internet and international operations, as well as commercial voice services, reported revenues of $6.1 billion, a 12 percent increase from the same period in 2000. This strong result was driven by 22 percent year-over-year revenue growth in data and Internet services and 19 percent revenue growth in international services.

Data and Internet services accounted for $2.8 billion or 45 percent of WorldCom group's revenues, up from 42 percent of revenues in the first quarter of 2000. Revenue growth in these fast-growing services continues to lead the industry and accounts for 76 percent of WorldCom group's incremental revenue growth since the year-ago quarter. International services now represent 26 percent of WorldCom group's revenues, up 150 basis points from the year ago period. Business voice revenues declined 5 percent from the year-ago period and now represent 28 percent of WorldCom group's revenues.

WorldCom group EBITDA (earnings before interest, taxes, depreciation and amortization) was unchanged from the year-ago period at $2.2 billion, but increased $116 million from the fourth quarter of 2000. WorldCom group EBITDA margin was 35 percent and includes the continued impact of previously announced spending on growth initiatives, such as managed web hosting and Internet-based private virtual networks, and increased employee retention and benefit spending.

WorldCom group reported cash earnings (earnings before goodwill amortization) of $865 million or 30 cents per share. WorldCom group net income, after goodwill amortization, was $638 million or 22 cents per share in the quarter.

MCI GROUP RESULTS

MCI group, the Company's consumer, small business, wholesale long distance, wireless messaging and dial-up Internet access businesses, reported revenues of $3.6 billion, versus $4.2 billion in the same period last year. Contrary to industry trends, MCI group consumer subscription long distance and local services reported revenue growth. This growth was offset by reduced revenues from transaction brands and calling card services that are experiencing substitution from wireless services; and alternate channels, wholesale and resale services that are being de-emphasized as the MCI group shifts its focus from revenue growth to cash generation.

MCI group EBITDA was $506 million. The MCI group reported cash earnings of $158 million or 5 cents per share. MCI group net income was $91 million or 3 cents per share.

CONSOLIDATED WORLDCOM, INC. RESULTS

First quarter 2001 consolidated revenues were $9.7 billion, up from $9.6 billion in the same period of 2000. Consolidated EBITDA was $2.9 billion, representing an EBITDA margin of 30 percent.

First quarter 2001 cash earnings were $1.0 billion, or 35 cents per share. Consolidated net income, after goodwill amortization, was $729 million or 25 cents per share in the quarter.

MANAGEMENT'S COMMENTS

"This quarter was an excellent start to what will be a pivotal year for WorldCom. These results show that WorldCom is on track to deliver strong growth and solid performance throughout the year," said Bernard J. Ebbers, president and CEO of WorldCom, Inc.

"On the WorldCom group side we achieved our growth targets, adding $237 million in revenues since the fourth quarter -- the largest sequential increase we've delivered in a year."

"And on the MCI group side we made excellent progress adjusting our businesses to maximize and maintain profitability and cash flow as far into the future as possible."

"In a very difficult environment, WorldCom's employees have accomplished a great deal preparing the Company for the realignment. While we still have more to do, I would like to thank all our employees for their efforts."

"We've made excellent progress on the creation of our tracking stocks and expect to mail documents to shareholders on May 2nd and hold a shareholder meeting on June 7th to vote on the tracking stocks and other matters. Assuming a favorable vote, we will distribute the tracking shares shortly thereafter."

MANAGEMENT'S OUTLOOK

The following outlook contains forward-looking statements that are based on WorldCom management's best judgment at this time. Actual results could differ materially and are subject to various risks and uncertainties, many of which, such as economic factors, market demand and competitive pressures, are beyond the Company's control.

The Company continues to expect full-year 2001 WorldCom group revenue growth of between 12 and 15 percent and expects WorldCom group cash earnings of between $1.25 and $1.35 per share for the year.

Because of the Company's intention to manage the MCI group for cash profitability and its intention to de-emphasize unprofitable business segments, we expect declining, but stabilizing sequential revenues in the MCI group. The Company expects MCI group cash earnings of between $0.25 and $0.30 per share in 2001. In addition, the Company fully expects the MCI group to generate sufficient cash flow in 2001 to service its anticipated dividends and allocated debt.

FORWARD-LOOKING STATEMENTS

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to the effects of vigorous competition; the impact of technological change on our business, new entrants and alternative technologies, and dependence on availability of transmission facilities; uncertainties associated with the success of acquisitions; risks of international business; regulatory risks in the United States and internationally; contingent liabilities; risks associated with Euro conversion efforts; uncertainties regarding the collectibility of receivables; risks associated with debt service requirements and interest rate fluctuations; and our financial leverage. More detailed information about those factors is contained in WorldCom's filings with the Securities and Exchange Commission.

ABOUT WORLDCOM

WorldCom (NASDAQ: WCOM) is a preeminent global communications company for the digital generation, operating in more than 65 countries with 2000 revenues of approximately $40 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.

WorldCom will conduct a conference call to discuss its financial results today, Thursday, April 26 at 7:30 AM (Central Time). The call will be available to all investors on the Internet at http://www.worldcom.com/investor.