WorldCom Reports First Quarter 1997 Results

Strong Revenue Gains Across All Communications
Services


Merger Synergies With MFS On Track

JACKSON, MS (April 30, 1997) WorldCom, Inc.

(Nasdaq/NM:WCOM) today reported first quarter revenues of $1.68
billion, an increase of 62 percent from first quarter 1996 revenues of
$1.03 billion. The year-over-year increase is due to both the merger
with MFS Communications Company, Inc., (MFS) on December 31, 1996, as
well as strong internal growth across all communications services. On a
reported basis, long distance traffic increased 52 percent over the
previous year.

Net income before preferred dividends for the first quarter 1997 --
taking into account the increased amortization of goodwill of $84
million related to the merger with MFS -- was $49.7 million, or $0.05
per common share, compared with net income of $86.3 million, or $0.21
per common share for first quarter, 1996. The non-cash amortization of
goodwill of $84 million, alone had a nine cent impact on earnings per
share for the quarter.

Bernard J. Ebbers, president and chief executive officer of
WorldCom, Inc., stated, "Our strong results clearly underscore the
importance of the recent merger with MFS and highlight the value of
being a full service, facilities-based communications provider. Our
revenue base has never been more diversified, and this balanced
portfolio of service offerings positions us to deliver ongoing
market-leading growth as characterized by the strong internally
generated growth rates of the combined operations."

COMMUNICATIONS SERVICES - PRO FORMA COMPARISON

WorldCom's first quarter highlights include the following
year-over-year internal growth:

FIRST QUARTER 1997

($ MILLIONS)

Revenues Actual Pro Forma Change
1997 1996
-------- -------- -------

Domestic Switched $ 951.9 $ 774.0 23%
Domestic Private Line 352.7 263.3 34%
International 163.8 86.9 89%
Internet 111.2 39.0 185%
-------- -------- -------
Core Revenues $1,579.6 $1,163.2 36%
======== ======== ========

Other revenues 97.6 80.6 21%

Total Revenues $1,677.2 $1,243.8 35%
======== ======== ========

Domestic Switched Services revenue for the first quarter experienced
a 23 percent year-over-year increase driven by a gain of 31 percent in
traffic. This increase was due primarily to strong volume gains and
more stable pricing in the business market. Carrier traffic growth,
year-over-year, was particularly strong.

Domestic Private Line revenues for the first quarter experienced a
34 percent year-over-year increase due primarily to increased demand
for higher capacity circuits for corporate intranet and other Internet
related services.

International revenues -- those revenues originating outside of the
United States -- for the first quarter were $164 million, an increase
of 89 percent, as compared with $87 million for the prior year first
quarter. This performance is due to continuing strong traffic growth in
the United Kingdom and a growing presence in Continental Europe.

Internet revenues for the first quarter were $111 million, up 185
percent over the prior year first quarter of $39 million.

OTHER REVENUES

Other revenues for the first quarter were $98 million, up 21
percent, as compared with $81 million for the comparable period in the
prior year. Other revenues include MFS Network Technologies, operator
services, broadcast operations, and other equipment and software
sales.

OPERATING RESULTS

Operating Income for the first quarter of 1997 was $171 million
compared to $196 million in the same period of 1996. The 1997 first
quarter results include MFS goodwill amortization of $84 million. Under
purchase accounting treatment of the MFS merger, 1996 results are not
similarly impacted.

PRO FORMA COMPARATIVES

In order to compare the year-over-year internal growth, the
following table reflects pro forma amounts for first quarter 1996:

FIRST QUARTER

ACTUAL PRO FORMA
1997 1996
--------------------- --------------------
% of % of

Amount Revenue Amount Revenue
Change
-----------------------------------------------------------------------------------
Revenue $1,677.2 100% $1,243.8 100% 35%
-----------------------------------------------------------------------------------
EBITDA $ 393.4 23.5% $ 261.2 21.0% 51%
-----------------------------------------------------------------------------------
Operating income $ 170.5 10.2% $ 54.3 4.4% 214%
-----------------------------------------------------------------------------------
Earnings Per Share $ 0.05 -- $ (0.10) -- --
(EPS)
-----------------------------------------------------------------------------------
Cash earnings(1) $ 0.20 -- $ 0.06 -- 233%
-----------------------------------------------------------------------------------

(1) 

Adding back MFS purchase accounting amortization
($0.09) and cash utilization of MFS tax loss carry forwards
($0.06).

OUTLOOK

Commenting on the outlook for WorldCom, Ebbers said: "I am
particularly pleased with our first quarter financial performance as a
combined entity. The merger and subsequent integration process has been
very smooth. With the organizational changes behind us, and a much more
diversified revenue mix, I have increasing confidence in our ability to
create further value for our stockholders."

 ----

ADDITIONAL FINANCIAL INFORMATION

WORLDCOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In Thousands, Except Per Share Data)

For the Three Months
Ended March 31,

------------------------------------------------------------------------
1997 1996
1996
----------------------
---------------------- ----------------------
Actual % Actual
% Pro Forma %
----------------------
---------------------- ----------------------
Minutes 8,518,364 5,611,409
6,310,239

Revenues $ 1,677,239 100.0% $ 1,034,060
100.0% $ 1,243,760 100.0%
------------ -------- ------------
-------- ------------
Operating expenses:
Line costs 911,469 54.3% 562,831
54.4% 672,616 54.1%
Selling, general and administrative 372,347 22.2% 191,601
18.5% 309,946 24.9%
Depreciation and amortization 222,903 13.3% 83,771
8.1% 206,942 16.6%
------------ -------- ------------
-------- ------------

Total 1,506,719 89.8% 838,203
81.1% 1,189,504 95.6%
------------ -------- ------------
-------- ------------
Operating income 170,520 10.2% 195,857
18.9% 54,256 4.4%
Other income (expense):
Interest expense (75,455) -4.5% (57,048)
-5.5% (81,003) -6.5%
Miscellaneous 8,401 0.5% 2,161
0.2% 7,212 0.6%
------------ -------- ------------
-------- ------------
Income (loss) before income taxes 103,466 6.2% 140,970
13.6% (19,535) -1.6%
Income tax expense 53,802 3.2% 54,663
5.3% 54,763 4.4%
------------ -------- ------------
-------- ------------
Net income (loss) 49,664 3.0% 86,307
8.3% (74,298) -6.0%
Preferred dividend requirement 6,610 0.4% 505
0.0% 7,577 0.6%
------------ -------- ------------
-------- ------------
Net income (loss) applicable to
common shareholders $ 43,054 2.6% $ 85,802
8.3% $ (81,875) -6.6%
============ ======== ============
======== ============
Earnings (loss) per common share:
Primary $ 0.05 $ 0.22
$ (0.10)
============ ============
============
Fully diluted $ 0.05 $ 0.21
$ (0.10)
============ ============
============

Weighted average shares outstanding :
Primary 948,979 395,038
859,070
Fully diluted 950,216 411,688
859,070

Private line revenues $ 379,843 $ 213,714
$ 273,199
Internet revenues $ 111,226 $ -
$ 39,003
Other revenues $ 97,644 $ 49,382
$ 80,511

 ----

WORLDCOM, INC. AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In Thousands, Except Per Share Data)

For the Three Months
Ended

-------------------------------
March 31,

-------------------------------
1997 1996
------------
-----------

Primary:
Weighted average shares outstanding 888,245
387,566
Common stock equivalents 28,031
7,472
Common stock issuable upon conversion of:
Series A preferred stock 32,703 -
------------
-----------
948,979
395,038
============
===========

Fully diluted:
Weighted average shares outstanding 888,245
387,566
Common stock equivalents 28,031
8,586
Common stock issuable upon conversion of:
Series A preferred stock 32,703
-
Series B preferred stock 1,237
-
5% convertible notes -
10,270
Series 2 preferred stock -
5,266
------------
-----------
950,216
411,688
============
===========

Income applicable to common shareholders $ 43,054 $
85,802
Add back:
Series A preferred dividend 6,364
-
Series B preferred dividend 246
-
Interest on 5% convertible notes, net of taxes -
1,491
Series 2 preferred dividend requirement -
505
------------
-----------
Net income applicable to common shareholders $ 49,664 $
87,798
============
===========

Earnings per share:
Primary $ 0.05 $
0.22
Fully diluted $ 0.05 $
0.21

 ----

WORLDCOM, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Before 1996 Non-Recurring Charges
(Unaudited. In Thousands of Dollars, Except Per
Share Data)

March 31, 1996
June 30, 1996 September 30, 1996 December 31, 1996 March
31, 1997
--------------------
-------------------- -------------------- --------------------
--------------------
$ %
$ % $ % $ %
$ %
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Revenues:
Domestic switched $ 774,005 62.2% $
794,103 59.5% $ 842,545 57.9% $ 912,647 57.0% $
951,892 56.8%
Domestic private line 263,344 21.2%
276,171 20.7% 299,422 20.6% 328,092 20.5%
352,700 21.0%
International 86,897 7.0%
107,717 8.1% 121,637 8.3% 152,901 9.5%
163,777 9.8%
Internet 39,003 3.1%
54,017 4.0% 69,693 4.8% 90,466 5.6%
111,226 6.6%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Core revenues 1,163,249 93.5%
1,232,008 92.3% 1,333,297 91.6% 1,484,106 92.6%
1,579,595 94.2%
Other 80,511 6.5%
102,427 7.7% 121,633 8.4% 117,992 7.4%
97,644 5.8%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Total Revenues $ 1,243,760 100.0% $
1,334,435 100.0% $ 1,454,930 100.0% $ 1,602,098 100.0% $
1,677,239 100.0%
============ ======
============ ====== ============ ====== ============ ======
============ ======
Operating expenses:
Line costs 672,616 54.1%
726,223 54.4% 805,329 55.4% 917,113 57.2%
911,469 54.3%
Selling, general and administrative 309,946 24.9%
333,513 25.0% 356,674 24.5% 365,989 22.9%
372,347 22.2%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
EBITDA 261,198 21.0%
274,699 20.6% 292,927 20.1% 318,996 19.9%
393,423 23.5%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Depreciation and amortization 206,942 16.6%
202,976 15.2% 214,057 14.7% 214,389 13.4%
222,903 13.3%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Operating income (loss) 54,256 4.4%
71,723 5.4% 78,870 5.4% 104,607 6.5%
170,520 10.2%
Other income (expense):
Interest expense (81,003) -6.5%
(83,205) -6.2% (84,192) -5.8% (85,267) -5.3%
(75,455) -4.5%
Miscellaneous 7,212 0.6%
6,376 0.5% 22,374 1.5% 16,992 1.1%
8,401 0.5%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Income (loss) before income taxes (19,535) -1.6%
(5,106) -0.4% 17,052 1.2% 36,332 2.3%
103,466 6.2%
Income tax expense (benefit) 54,763 4.4%
63,979 4.8% 70,037 4.8% 76,781 4.8%
53,802 3.2%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Net income (loss) (74,298) -6.0%
(69,085) -5.2% (52,985) -3.6% (40,449) -2.5%
49,664 3.0%
Preferred dividend requirement 7,577 0.6%
7,815 0.6% 7,460 0.5% 7,437 0.5%
6,610 0.4%
------------ ------
------------ ------ ------------ ------ ------------ ------
------------ ------
Net income (loss) applicable to common shareholders $ (81,875) -6.6% $
(76,900) -5.8% $ (60,445) -4.2% $ (47,886) -3.0% $
43,054 2.6%
============ ======
============ ====== ============ ====== ============ ======
============ ======
Earnings (loss) per common share:
extraordinary items:
Primary $ (0.10) $
(0.09) $ (0.07) $ (0.05) $
0.05
============
============ ============ ============
============
Fully diluted $ (0.10) $
(0.09) $ (0.07) $ (0.05) $
0.05
============
============ ============ ============
============
Shares outstanding:
Primary 859,070
862,674 874,395 881,467
948,979
============
============ ============ ============
============
Fully diluted 859,070
862,674 874,395 881,467
950,216
============
============ ============ ============
============

 ----

WORLDCOM, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF
OPERATIONS
After 1996 Non-Recurring Charges
(Unaudited. In Thousands of Dollars, Except Per
Share Data)

March 31, 1996
June 30, 1996 September 30, 1996 December 31, 1996
March 31, 1997
---------------------
-------------------- -------------------- ----------------------
--------------------
$ %
$ % $ % $ %
$ %
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Revenues:
Domestic switched $ 774,005 62.2%
$ 794,103 59.5% $ 842,545 57.9% $ 912,647 57.0%
951,892 56.8%
Domestic private line 263,344 21.2%
276,171 20.7% 299,422 20.6% 328,092 20.5%
352,700 21.0%
International 86,897 7.0%
107,717 8.1% 121,637 8.3% 152,901 9.5%
163,777 9.8%
Internet 39,003 3.1%
54,017 4.0% 69,693 4.8% 90,466 5.6%
111,226 6.6%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Core revenues 1,163,249 93.5%
1,232,008 92.3% 1,333,297 91.6% 1,484,106 92.6%
1,579,595 94.2%
Other 80,511 6.5%
102,427 7.7% 121,633 8.4% 117,992 7.4%
97,644 5.8%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Total Revenues $ 1,243,760 100.0%
$ 1,334,435 100.0% $ 1,454,930 100.0% $ 1,602,098 100.0% $
1,677,239 100.0%
============= ======
============ ====== ============ ====== ============ ========
============ ======
Operating expenses:
Line costs 672,616 54.1%
726,223 54.4% 805,329 55.4% 917,113 57.2%
911,469 54.3%
Selling, general and administrative 309,946 24.9%
333,513 25.0% 356,674 24.5% 365,989 22.9%
372,347 22.2%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
EBITDA 261,198 21.0%
274,699 20.6% 292,927 20.1% 318,996 19.9%
393,423 23.5%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Depreciation and amortization 206,942 16.6%
202,976 15.2% 214,057 14.7% 214,389 13.4%
222,903 13.3%
Other charges - -
402,000 30.2% - - 198,148 -
- -
Charge for in-process research and development - -
- - - - 2,140,000 -
- -
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Operating income (loss) 54,256 4.4%
(330,277) -24.8% 78,870 5.4% (2,233,541) -139.4%
170,520 10.2%
Other income (expense):
Interest expense (81,003) -6.5%
(83,205) -6.2% (84,192) -5.8% (85,267) -5.3%
(75,455) -4.5%
Miscellaneous 7,212 0.6%
6,376 0.5% 22,374 1.5% 16,992 1.1%
8,401 0.5%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Income (loss) before income taxes (19,535) -1.6%
(407,106) -30.5% 17,052 1.2% (2,301,816) -143.7%
103,466 6.2%
Income tax expense (benefit) 54,763 4.4%
5,559 0.4% 70,037 4.8% (287) 0.0%
53,802 3.2%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Net income (loss) (74,298) -6.0%
(412,665) -30.9% (52,985) -3.6% (2,301,529) -143.7%
49,664 3.0%
Preferred dividend requirement 7,577 0.6%
7,815 0.6% 7,460 0.5% 7,437 0.5%
6,610 0.4%
------------- ------
------------ ------ ------------ ------ ------------ -------
------------ ------
Net income (loss) applicable to common shareholders $ (81,875) -6.6%
$ (420,480) -31.5% $ (60,445) -4.2% $ (2,308,966) -144.1% $
43,054 2.6%
============ ======
============ ====== ============ ====== ============ ========
============ ======

Earnings (loss) per common share:

extraordinary items:

Primary $ (0.10)
$ (0.49) $ (0.07) $ (2.62) $
0.05
============
============ ============ ============
=============
Fully diluted $ (0.10)
$ (0.49) $ (0.07) $ (2.62) $
0.05
============
============ ============ ============
=============
Shares outstanding:

Primary 859,070
862,674 874,395 881,467
948,979
============
============ ============ ============
=============
Fully diluted 859,070
862,674 874,395 881,467
950,216
============
============ ============ ============
=============

Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that
involve risks and uncertainties as detailed from time to time in
various regulatory filings. Actual results may vary significantly from
these statements.

WorldCom is a global business telecommunications company. Operating
in more than 50 countries, the company is a premier provider of
facilities-based and fully integrated local, long distance,
international and Internet services. WorldCom's subsidiary, UUNET
Technologies, Inc., is the world's largest provider of Internet
services. WorldCom's World Wide Web address is
http://www.wcom.com

. The common and depositary shares of WorldCom trade on the Nasdaq
National Market (U.S.) under the symbol WCOM and WCOMP,
respectively.

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