WorldCom Restructures Investment in Brazil and Updates Financial Guidance

CLINTON, Miss. - July 5, 2001

- WorldCom [NASDAQ:WCOM] today announced that it had restructured
its ownership interest in Embratel Participacoes S.A., or Embrapar
[NYSE:EMT; BOVESPA: EBTP3, EBTP4] through the establishment of an
endowment for Institute Embratel 21, a multimedia digital library
project in Brazil. Embrapar is the parent company of Embratel,
Brazil's nationwide communications provider and recognized leader
in the data and Internet market. As a result of the restructuring and
effective for the second quarter of 2001, WorldCom will no longer
consolidate Embrapar's operations.

"Embratel continues to play an important role in WorldCom
group's international growth strategy by extending our ability to
offer global customers services throughout the world," stated
Bernard J. Ebbers, president and CEO of WorldCom. "But
continuing to consolidate Embrapar's financial results, even
though we only have a 19 percent economic interest, was causing undue
confusion in the market. Our strategic mission is unchanged. WorldCom
is focused on serving the expanding digital communications
requirements of enterprise customers, and all of our assets will be
aligned in that direction. Any detractions from that mission are
going to be addressed."

Updated Financial Guidance

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 deconsolidation of Embratel's financial results, and other
financial factors, including the Company's May 2001 debt
issuance, the impact of the Intermedia/Digex acquisition, lower
expected Embratel equity results and increased depreciation are
expected to have the following impacts on WorldCom group's 2001
financial guidance.

WorldCom Group Full-Year 2001 Financial Guidance

(1) Excludes currency loss and adjustments to the carrying cost of
investments, if necessary.

WorldCom Group Second Quarter 2001 Financial Guidance

WorldCom group currently expects second quarter 2001 revenues of
between $5.3 billion and $5.4 billion representing growth of 11 - 13
percent from the second quarter of 2000. Cash earnings per share
excluding currency loss and adjustments to the carrying cost of
investments, if necessary, are currently expected to be between 28
and 29 cents for the second quarter of 2001, in line with consensus
estimates. Internal cash flow in the quarter improved in excess of
$600 million sequentially from the first quarter - significantly
ahead of previous estimates.

"I'm very pleased that we are able to reaffirm our
industry leading revenue growth and EBITDA guidance," Ebbers
stated. "We have taken very proactive measures to fund our
expected growth, as well as investing in networks, systems and
acquisitions to enhance our position in strategic areas like
Internet-based virtual private networks and managed web hosting.
These actions improve WorldCom's ability to execute its mission
of providing enterprise customers around the world with the digital
communications services they need. While these deliberate measures
impact our below-the-line earnings in the short-term, I'm
confident they make the Company stronger going forward."

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.

WorldCom (NASDAQ: WCOM) is a pre-eminent global communications
company for the digital generation, operating in more than 65
countries with 2000 revenues of approximately $23 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/

Note to readers: Historical WorldCom financial statements
reflecting the deconsolidation have been placed in the 'Financials'
section of the WorldCom Investor Relations web site at
www.worldcom.com/investor/

____