WorldCom Implements Program To Restore Confidence, Rebuild Integrity and Business Practices

CLINTON, Miss. - November 4, 2002 - WorldCom, Inc. (WCOEQ) today announced that it has taken a series of actions designed to restore confidence in the company and rebuild its integrity and business practices.

"Information received from both internal and external investigations has raised issues and illuminated facts about the company's internal controls, integrity, disclosures and financial statements. We take these reports very seriously and, accordingly, the company has already taken forceful steps to strengthen and stabilize its corporate governance, management and internal controls. WorldCom's management and Board are determined to ensure that what happened here in the past cannot recur," said John Sidgmore, WorldCom president and chief executive officer.

Mr. Sidgmore said that the preliminary report from WorldCom's court-appointed examiner, Richard Thornburgh, was filed with the U.S. Bankruptcy Court today.

"We are working to create a new WorldCom," he said. "We have developed and implemented new systems, policies and procedures. We have reorganized our finance and accounting functions and have implemented, or are implementing, other organizational changes intended to help correct the company's past problems, pre-empt their reoccurrence and create a system that will permit its newly-appointed independent auditors to complete their review of the financial statements for the years 2000, 2001 and 2002."

Mr. Sidgmore continued, "In addition to my stepping in as CEO, WorldCom has a new CFO, Chief Restructuring Officer, three highly qualified new members of the Board of Directors and new legal and financial advisors.

John Dubel, the company's new chief financial officer, added, "We are in the process of hiring a new corporate controller, and four line controllers to oversee revenue accounting, operational accounting, financial accounting and financial controls and procedures.

"The company is doubling its internal audit department staff and broadening its focus to include financial accounting matters, as well as operational matters. WorldCom's internal audit department has a new reporting relationship. It now reports directly to the Audit Committee of the company's Board," Mr. Dubel said.

"We are creating two new operational CFO positions: one for the company's Asia-Pacific business and one for our European business, each with dotted line authority to the WorldCom, Inc. CFO. We have changed auditors, created a special investigative committee of the Board and are working with both internal and external groups to identify any additional problems of the past and come up with solutions to those problems," he added.

Mr. Sidgmore said the company's newest Board members, which have been previously announced, are serving on the special investigative committee of the Board. These Board members are:

• Nicholas deB Katzenbach, former US Attorney General, Under Secretary of State and Senior VP and General Counsel of IBM;
• Dennis Beresford, Professor of Accounting at the Terry College of Business at the University of Georgia and former Chairman of the Financial Accounting Standards Board; and
• C.B. Rogers, Jr., former Chairman and CEO of Equifax, Inc. and who has served on the Board of such companies as Sears, Roebuck & Co., Dean Witter and Briggs & Stratton Corp.

Mr. Sidgmore said that the Board and senior management have made it clear that sanctions will be taken, as appropriate, against any WorldCom employee not adhering to company policy.

"Nothing is more important to this company than its integrity. Our Board will not allow that to be compromised in any way," he said.

"This is a terrific company with outstanding employees and loyal customers," Mr. Sidgmore said. "WorldCom is not the handful of people you have read about in the newspaper. It is 63,000 hard working, dedicated people who are committed to their families, their jobs and their customers. I know I speak for every WorldCom employee when I say I wish I could wave a magic wand and make the events that put the company where it is today go away. Unfortunately, I can't. What the Board, senior management and every employee of this company can and will do, however, is take whatever action is necessary to ensure that the actions which caused the company's past problems can not and will not happen again."

About WorldCom, Inc.

WorldCom, Inc. (NASDAQ: WCOEQ, MCWEQ) is a pre-eminent global communications provider for the digital generation, operating in more than 65 countries. With one of the most expansive, wholly-owned IP networks in the world, WorldCom provides innovative data and Internet services for businesses to communicate in today's market. In April 2002, WorldCom launched The Neighborhood built by MCI - the industry's first truly any-distance, all-inclusive local and long-distance offering to consumers. For more information, go to http://www.worldcom.com.