CLINTON, Miss., July 5, 2001 - WorldCom Inc. (Nasdaq: WCOM)
today announced that it will redeem all of its outstanding 8-7/8
percent Senior Notes due January 15, 2006 (CUSIP No. 98155K AE 2) (the
"WorldCom Notes"). WorldCom also announced today that its
wholly owned subsidiary, MCI Communications Corporation, as successor
to MFS Communications Company, Inc., will redeem on the redemption date
all of its remaining outstanding 8-7/8 percent Senior Discount Notes
due January 15, 2006 (CUSIP No. 55272T AB 7) (the "MCI Notes"
and, together with the WorldCom Notes, the "Notes"). WorldCom
has set August 6, 2001 as the redemption date for the Notes.
The aggregate outstanding principal amount of the WorldCom Notes is
approximately $667 million. Holders of the WorldCom Notes who surrender
their WorldCom Notes for payment as described in the notice of
redemption will receive an amount equal to 103.32% of the principal
amount plus accrued and unpaid interest to August 6, 2001 of
approximately $5.18 per $1,000 principal amount of such WorldCom Notes.
On and after August 6, 2001, interest on the WorldCom Notes will cease
to accrue and holders will have no other rights as holders other than
the right to receive payment of the foregoing redemption price plus
accrued and unpaid interest to the redemption date, unless there is a
default in such payment.
The aggregate outstanding principal amount of the MCI Notes is
approximately $5 million. Holders of the MCI Notes who surrender their
MCI Notes for payment as described in the notice of redemption will
receive an amount equal to 103.32% of the principal amount thereof plus
accrued and unpaid interest to August 6, 2001 of approximately $5.18
per $1,000 principal amount of such MCI Notes. On and after August 6,
2001, interest on the MCI Notes will cease to accrue and holders will
have no other rights as holders other than the right to receive payment
of the foregoing redemption price plus accrued and unpaid interest to
the redemption date, unless there is a default in such payment.
The respective notices of redemption are being sent to holders of
the WorldCom Notes and the MCI Notes. Copies of the notice of
redemption with respect to the WorldCom Notes can be obtained from The
Chase Manhattan Bank, the trustee and paying agent with respect to such
Notes. Copies of the notice of redemption with respect to the MCI Notes
can be obtained from The Bank of New York, the trustee and paying agent
with respect to the MCI Notes.
ABOUT WORLDCOM
WorldCom is a preeminent global communications company for the digital
generation, generation d, operating in more than 65 countries. WorldCom
provides the innovative technologies and services that are the
foundation for business in the 21st century. For more information,
visit WorldCom's web site at
http://www.worldcom.com
.
