WorldCom Reports First Quarter 1998 Results

JACKSON, Miss., April 23 1998

-- WorldCom, Inc. (WorldCom) today reported first
quarter revenues of $2.35 billion, a 38 percent increase
over first quarter 1997 revenues of $1.70 billion. Prior
year results have been restated to include the Brooks
Fiber merger, which was completed on January 29, 1998,
and accounted for as a pooling-of-interests transaction.
Traffic for the first quarter increased 38 percent over
the previous year. Strong internal growth across all
communications services, combined with the benefits of
the CNS/ANS transactions completed January 31, 1998,
contributed to the impressive year-over-year reported
core revenue gains of 45 percent. These gains were
somewhat offset by a reduction in non-core revenues due
primarily to the previous disposition of operator
services and broadcast operations in third quarter 1997.
On a pro forma basis, assuming the acquisitions of CNS
and ANS occurred as of the same date for both periods --
which is more indicative of internal growth -- core
communications services revenues increased 36 percent on
industry leading volume growth of 38 percent.

Reported net income for the first
quarter 1998, after eliminating the impact of merger
charges related to the Brooks Fiber transaction, the
in-process research and development (R&D) charge from
the CNS/ANS transactions and early retirement of the Brooks
Fiber debt ­ are $193 million or $0.18 per common share
compared with income of $25 million or $0.02 per common
share for the first quarter 1997. On a pro forma basis,
comparative net income for the first quarter 1997, taking
into account the purchase accounting impact of the CNS/ANS
transactions, was $13 million or $0.01 per common
share.

Operating income for the first quarter
1998, before merger charges, was $426 million -- an
increase of 174 percent compared with $155 million on a
reported basis, for first quarter 1997 and an increase of
200 percent compared with $142 million on a pro forma basis
for the same prior year period. The improvement in
operating income is underscored by the EBITDA margin of 31
percent in the first quarter 1998, compared with 22 percent
on a pro forma basis for the same period in 1997. This
margin improvement is attributed to the achievement of
selling, general and administrative cost savings and access
cost savings throughout 1997 and the first quarter of 1998,
and a more profitable mix of revenues.

MERGER CHARGES

During the first quarter 1998, merger
charges related to the Brooks Fiber transaction amounted to
$69 million. In addition, the outstanding high yield Brooks
Fiber bonds were retired resulting in an extraordinary
charge of $129 million, net of tax.

In connection with the CNS/ANS
transactions, a valuation analysis was performed of
CNS' and ANS' technologies including the
companies' virtual private data networks, application
hosting products, security systems, next generation network
architectures, and certain other identified research and
development projects purchased in the CNS/ANS transactions.
The result of the valuation is the assignment of $429
million of intangible assets to in-process research and
development, which was expensed in the first quarter of
1998. Subsequent to the R&D charge, the preliminary
allocation of the combined purchase price creates total
goodwill of approximately $780 million, which will be
amortized over ten years, and is tax deductible.

MANAGEMENT'S COMMENTS ON THE FIRST QUARTER

"This is an excellent start to the
year," said Bernard J. Ebbers, President and CEO of
WorldCom. "Our internal revenue gains, margin
improvement and earnings performance are particularly
impressive considering that we completed meaningful
business combinations during the quarter.

"Brooks Fiber, CNS and ANS not only
add incrementally to our operations, but have further
enhanced our growth in the fastest growing segments of the
market with strong year-over-year performance."

COMMUNICATIONS SERVICES - PRO FORMA COMPARISON

WorldCom's first quarter highlights,
assuming the acquisitions of CNS and ANS occurred as of the
same date for both periods, and as restated for the Brooks
Fiber merger, include the following year-over-year internal
growth in core revenues.

For the first quarter, all categories of
core communications services showed above 20 percent
year-over-year growth, with blended growth of 36 percent.
The drivers of the revenue growth and improving margins
continue to be domestic private line and data services,
international and Internet growth. The strong demand for
high speed data and Internet connections continues to drive
capital investment allocation to advanced transmission
technologies and fiber optics on both a domestic and
international basis.

CORE REVENUES

Domestic switched services revenue
increased 21 percent for the quarter. Strong long distance
volume gains in all domestic and international sales
channels, combined with an increasing mix of local, were
the primary contributors to this increase. The strong
volume growth was offset partially by competitive
international pricing, access charge reform pass throughs
and changing product mix.

Domestic private line revenues increased
38 percent for the quarter. The particularly strong revenue
growth for private line and frame relay services continues
to be fueled by tremendous commercial end- user demand for
high-speed data and by Internet-related growth on both a
local and long-haul basis. Over 75 percent of the private
line revenues are produced by the commercial sales
organization.

International revenues -- those revenues
originating outside of the U.S. -- were up 59 percent to
$260 million for the quarter ­ an annualized run rate of
over one billion dollars. During the quarter, the
transatlantic cable was commissioned for service and now
provides WorldCom the capability to connect from end-to-end
over 4,000 buildings in Europe with over 27,000 buildings
in the U.S. ­ all over high capacity circuits.

Internet revenues for the first quarter
were $392 million. CNS and ANS revenues were included
following the completion of the transactions on January 31,
1998. On a pro forma basis, including CNS/ANS for the same
time period in both years, Internet revenues increased 82
percent. Excluding CNS and ANS, Internet revenues would
have been $230 million, up 107 percent year-over-year.

OTHER REVENUES

Other revenues for the first quarter of
1998 were $40 million, down 60 percent compared with first
quarter 1997. Other revenues include MFS Network
Technologies of $32 million and systems and consulting
sales of $8 million. Operator services and broadcast
operations were sold in the third quarter 1997. On a recast
basis, excluding the results of the operator services and
broadcast operations divisions in both periods, other
revenues were down 32 percent for the first quarter due to
the timing of transportation construction contracts within
the Network Technologies group.

PRO FORMA COMPARATIVES

In order to compare year-over-year
internal growth, the following table reflects pro forma
amounts as if the CNS/ANS transactions occurred as of the
same date for both periods -- before merger and
extraordinary charges:

As a percent of revenue, EBITDA margin
for the first quarter of 1998 was 31 percent and operating
income was 18 percent, compared with 22 percent and 8
percent, respectively, for the prior year period. The
improvement in operating income is due to the ongoing
realization of merger synergies, an improving mix of higher
margin revenues, and the operating leverage related to the
fixed quarterly level of amortization expense.

MCI TRANSACTION

On November 10, 1997, WorldCom announced
a definitive merger agreement with MCI Communications
Corporation (MCI). The combined company, to be known as MCI
WorldCom, will be the first company since the breakup of
AT&T to bundle local and long distance services carried
over an international end-to-end fiber network owned or
controlled by a single company.

Under the terms of the agreement,
stockholders of MCI will receive $51 worth of WorldCom
common stock for each share of MCI common stock held, with
the exception of British Telecom (BT), which will receive
$51 in cash for each share of MCI. Shareholders of both
WorldCom and MCI approved the merger at separate meetings
held on March 11, 1998. The company expects the merger to
close in mid-1998.

OUTLOOK

Commenting on the outlook for WorldCom,
Ebbers said, "We continue to be very excited about the
pending merger with MCI and are committed to closing this
transaction as quickly as possible.

"This is an increasingly
competitive and capital intensive business. The deliberate
shift in our focus to the higher growth and higher margin
segments of the business ­ once thought to be unusual ­ is
increasingly being copied by our competitors. The growth
and profitability of these businesses is what allows us to
continue to make the necessary capital investments to be
competitive in this industry.

"The head start we have, combined
with the size and marketing capabilities of MCI, position
us well for the years to come. A year from now -- due to
the rapid growth rates in data, Internet, international and
local services -- WorldCom, will be a company comparable in
size to many of the more familiar 'blue chip'
names, but with growth rates and operating margins that
should distance us from our traditional peer group. This is
an outlook we can all be excited about," Ebbers
said.

Except for the historical information
contained herein, this news release may be deemed to
include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended, that involve risk and uncertainty, including
financial, regulatory environment and trend projections.
Although the Company believes that its expectations are
based on reasonable assumptions, it can give no assurance
that its expectations will be achieved. The important
factors that could cause actual results to differ
materially from those in the forward-looking statements
herein (the "Cautionary Statements") include,
without limitation, the Company's degree of financial
leverage, risks associated with debt service requirements
and interest rate fluctuations, risks associated with
acquisitions and the integration thereof, risks of
international business, dependence on availability of
transmission facilities, regulation risks including the
impact of the Telecom Act, contingent liabilities, and the
impact of competitive services and pricing, as well as
other risks referenced from time to time in the
Company's filings with the SEC, including the
Company's Form 10-K for the year ended December 31,
1997. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on
its behalf are expressly qualified in their entirety by the
Cautionary Statements. The Company does not undertake any
obligation to release publicly any revisions to such
forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the
occurrence of unanticipated events.

WorldCom is a global 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, under the UUNET brand, is an
international provider of Internet services with multiple
Points of Presence (POPs) throughout the United States and
in Canada, Europe and the Asia-Pacific region.
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.