WorldCom Reports Second Quarter 1998 Results

Earnings per Share of $0.21

Core Revenue Growth Accelerates to 38 Percent
Year-over-Year

Merger with MCI Passes Key Regulatory Hurdles

JACKSON, MS (July 23, 1998) -

WorldCom, Inc. (NASDAQ:WCOM) today reported second quarter
revenues of $2.61 billion, a 45 percent increase over second
quarter 1997 revenues of $1.80 billion. Prior year results
include the Brooks Fiber merger, which was completed on January
29, 1998, and accounted for as a pooling-of-interests
transaction. Traffic for the second quarter increased 39 percent
over the previous year. Internal growth was particularly strong
across all sectors of communications services. Accelerating
internal growth, combined with the benefits of the CNS/ANS
transactions for the full quarter, contributed to the impressive
year-over-year reported core revenue gains of 52 percent. On a
pro forma basis, assuming the acquisitions of CNS and ANS
occurred as of the beginning of the year for both periods --
which is indicative of internal growth -- core communications
services revenues increased 38 percent on industry leading volume
growth of 39 percent.

Reported net income for the second quarter 1998 was $228 million
or $0.21 per common share compared with net income before
extraordinary items of $44 million or $0.04 per common share in the
second quarter of 1997.

Operating income for the second quarter 1998 was $494.8 million
-- an increase of 127 percent compared with $218.3 million on a
reported basis for the second quarter of 1997.

The improvement in operating income margins over the past year
is due to a significant improvement in year-over-year operating
cash flow and the fixed level of annual amortization. A more
profitable mix of non-access bearing revenues combined with the
achievement of cost savings has driven the increase in EBITDA
margins.

YEAR-TO-DATE HIGHLIGHTS

For the six months ended June 30, 1998, WorldCom reported
revenues of $4.96 billion, up 42 percent as compared with $3.49
billion for the first six months of 1997. On a pro forma basis,
assuming the acquisitions of CNS and ANS occurred at the beginning
of the year for both periods, year-to-date total revenue was $5.04
billion, up 32 percent as compared with $3.83 billion. For core
revenues alone, the pro forma results increased 37 percent to $4.96
billion.

Reported year-to-date net income before non-recurring charges
and extraordinary items was $420 million, or $0.39 per common share
compared with $69 million or $0.06 per common share for the
comparable six month period in 1997.

Operating income before non-recurring charges for the six months
year-to-date was $921 million -- an increase of 146 percent
compared with $374 million on a reported basis for the comparable
period in 1997.

MANAGEMENT'S COMMENTS ON THE SECOND QUARTER

"The strength of our industry leading revenue growth is
particularly gratifying and indicative of the diversification of
our business into the higher growth areas of
telecommunications," said Bernard J. Ebbers, President and
Chief Executive Officer of WorldCom. "Our strong earnings and
operating margin performance are once again the product of an
organization focused on the bottom line and demonstrate a
proficiency at integrating merged companies."

COMMUNICATIONS SERVICES - PRO FORMA COMPARISON

For internal growth comparison purposes, the following pro forma
illustration includes Brooks Fiber, CNS and ANS from the beginning
of the earliest period presented.

For the second quarter and year-to-date, all categories of core
communications services showed above 20 percent year-over-year
growth, with total core revenue growth of 38 percent and 37 percent
for the quarter and year-to-date, respectively. Domestic private
line and data services, international and Internet services now
comprise more than half of total revenues and are the key drivers
of the company's industry leading revenue growth. Capital
investment for advanced transmission technologies and fiber optics
in support of customer demand for high speed data and Internet
connections is focused on driving both revenue and margin
expansion.

CORE REVENUES - PRO FORMA ANALYSIS

Domestic switched services, or voice revenues, increased 23
percent for the quarter and 22 percent for the year-to-date. Strong
long distance volume gains in all domestic sales channels, combined
with an increasing mix of local services, were the primary
contributors to this increase. The strong volume growth was offset
partially by competitive international pricing and access charge
reform pass throughs.

Domestic private line, or data revenues, increased 41 percent
for the quarter and 39 percent for the year-to-date. The
particularly strong revenue growth for private line and frame relay
services continues to be driven by tremendous commercial end-user
demand for high-speed data and by Internet-related growth on both a
local and long-haul basis. This growth is not only being fueled by
connectivity demands, but applications are becoming increasingly
complex, and bandwidth consumption is driving an acceleration in
growth for higher capacity circuits.

International revenues -- those revenues originating outside of
the U.S. -- accelerated sequentially from the first quarter and
were up 52 percent as compared with a particularly strong second
quarter in 1997. On a year-to-date basis, International revenues
were up 55 percent to $559 million. Earlier this week, the
pan-European network was commissioned for service and now provides
WorldCom the unprecedented capability to connect from end-to-end
over 5,000 buildings in Europe with over 30,000 buildings in the
U.S. -- all over its own high-capacity circuits.

Internet revenues increased 73 percent for the quarter and 74
percent for the year-to-date, all on a pro forma basis as if CNS
and ANS had been combined since the beginning of both years. Growth
is being driven by both dial up and dedicated connectivity to the
Internet as more and more business customers migrate their data
networks and applications to Internet-based technologies.

OTHER REVENUES

Other revenues for the second quarter of 1998 were $42 million,
down 63 percent compared with the second quarter of 1997. Other
revenues include MFS Network Technologies of $32 million and
systems and consulting sales of $10 million.

Operator services and broadcast operations were sold in the
third quarter of 1997. On a recast basis, excluding the results of
the operator services and broadcast operations divisions in both
periods, other revenues were down 42 percent for the second quarter
due to the timing of transportation construction contracts within
the MFS Network Technologies group. MFS Network Technologies was
sold on July 2, 1998.

PRO FORMA COMPARATIVES

The following table reflects pro forma amounts as if the CNS/ANS
transactions occurred as of the beginning of the earliest period
presented -- before merger and extraordinary charges.

As a percent of revenues, EBITDA margin for the second quarter
of 1998 was 32 percent and operating income 19 percent compared
with 25 percent and 10 percent, respectively, for the prior year
period. The improvement in operating income is due to the
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). Under the
terms of the agreement, stockholders of MCI will receive 1.2439
shares of WorldCom common stock for each share of MCI common stock
held, based on WorldCom's 20-day average price being greater
than $41 per share. British Telecom (BT) will receive $51 in cash
for each share of MCI Class A common stock. Shareholders of
WorldCom and stockholders of MCI approved the merger at separate
meetings held on March 11, 1998.

The European Commission (EC) and Department of Justice (DOJ)
approved the merger of WorldCom and MCI on July 8
^th

and July 15
^th

, respectively, based on MCI's agreement to sell its Internet
business to Cable and Wireless for $1.75 billion.

The FCC and remaining state approvals and closing are expected
to occur in the third quarter. In preparation for the MCI closing
and to accommodate the $7 billion payment to BT, the company
expects to complete a new bank facility in early August. In
addition, the company expects to access the bond market in the
first week of August.

OUTLOOK

Commenting on the outlook for WorldCom, Ebbers said: "Our
financial results speak for themselves and reflect the hard work of
our employees around the world. We continue to grow our employee
base, improve productivity and drive shareholder value in a very
competitive and challenging marketplace.

"While it is unfortunate that MCI will have to sell its
Internet assets, we are prepared to continue to invest aggressively
in the fastest growing and most profitable sectors of the market.
Today these growth opportunities are most obvious in international
and data markets. The market has changed dramatically over the last
couple of years due in part to regulatory change, but also rapidly
evolving Internet-based technologies. Our aggressive capital
deployment is driving both revenue growth, as the addressable
market expands, and margin improvement as more and more traffic is
carried "on net."

"Taking into account the scale and anticipated margins for
the combined WorldCom, we are particularly well positioned to
compete in this new market environment. Our industry leading and
accelerating revenue growth, combined with a demonstrated track
record of margin expansion, are cause for optimism as we continue
our relentless pursuit of increasing shareholder value,"
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.

Any offering of WorldCom securities will only be made by means
of a prospectus. This news release shall not constitute an offer to
sell or the solicitation of any offer to buy nor shall there be any
sale of such securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

WorldCom, Inc. is a global telecommunications company with
established operations in over 50 countries encompassing the
Americas, Europe and the Asia-Pacific regions. WorldCom is a
premier provider of facilities-based and fully integrated local,
long distance, international and Internet services. WorldCom's
global networks, including its state-of-the-art pan-European
network and transoceanic cable systems, provide end-to-end
connectivity to over 35,000 buildings worldwide. WorldCom's
World Wide Web address is:
http://www.wcom.com

. On November 10, 1997, WorldCom announced a definitive merger
agreement with MCI Communications Corporation. The merger is
expected to be completed this summer.