WorldCom, Inc. Reports 1996 Results

JACKSON, MISS., (February 27, 1997) --

WorldCom, Inc. (Nasdaq/NM:WCOM) today reported stand alone revenues of
$4.49 billion for 1996, up 21 percent from 1995 revenues of $3.70
billion. Traffic increased 25 percent over the previous year. Net
income for the year before non-recurring special charges of $2.63
billion -- including research and development and other charges of
$2.26 billion related to the merger with MFS Communications Company,
Inc. (MFS) in the fourth quarter of 1996, and second quarter non-cash
charges of $368 million after taxes -- increased to $414.9 million, or
$1.01 per common share. This compares with net income of $248.1
million, or $0.68 per common share before the special dividend payment,
for 1995. The prior year results have been restated to include the 1996
acquisitions of Choice Communications and BLT Technologies, which were
accounted for as pooling of interests.

For the fourth quarter ended December 31, 1996, stand alone WorldCom
revenues totaled $1.23 billion, which represents an increase of 28
percent over revenues of $0.96 billion for the fourth quarter of 1995.
Traffic for the most recent quarter increased 36 percent over the
previous year. Net income, excluding the MFS merger-related
non-recurring special charges of $2.26 billion, increased to $119.7
million or $0.29 per common share compared with net income of $79.1
million, or $0.20 per common share for the fourth quarter of 1995.

Results for the fourth quarter and full year, other than
non-recurring charges, exclude the operations of MFS, which was
acquired by WorldCom, Inc. on December 31, 1996.

Bernard J. Ebbers, president and chief executive officer of
WorldCom, stated, "We continue to lead the industry in financial
performance. The rapidly changing regulatory and technological
environment have created unprecedented opportunities to further this
growth. The merger with MFS is timely and the incremental revenue
growth greatly enhances WorldCom's financial performance."

WorldCom stand alone fourth quarter highlights included the
following year-over-year internal growth statistics:

• 31 percent increase in private line and frame relay
  revenues.
• 29 percent increase in switched commercial and wholesale
  revenues.
• 35 percent increase in switched commercial and wholesale
  traffic.

WorldCom fourth quarter highlights included the following
year-over-year growth statistics for acquisitions:

• 97 percent increase in Choice Communications cellular and BLT
  prepaid card revenues.

WorldCom fourth quarter highlights included the following
year-over-year total growth statistics:

• 30 percent increase in switched commercial and wholesale
  revenues.
• 36 percent increase in switched commercial and wholesale
  traffic.

MFS FINANCIAL PERFORMANCE

MFS stand alone fourth quarter revenue was $391.0 million, an increase
of 128 percent, as compared with $171.1 million for the same period
last year. The increase was due in part to the merger with UUNET
Technologies, Inc. (UUNET), which was completed August 12, 1996 as well
as strong revenue gains in International and Telecom segments.
For the full year 1996, MFS revenue was $1.12 billion, an increase
of 91 percent, as compared with $583.2 million for 1995. In addition to
the UUNET contribution from August 12, 1996, of $135.1 million, strong
gains were recorded in International, Telecom and Network Systems
Integration.

Annualized monthly recurring revenue at the end of December 1996 was
approximately $1.39 billion, up 122 percent compared with $625 million
at the end of 1995.

On a consolidated MFS basis prior to non-recurring merger-related
charges, EBITDA for the fourth quarter 1996, was $1.0 million as
compared with a loss of $19.6 million for the fourth quarter 1995. For
the full year 1996, EBITDA before non-recurring charges was a loss of
$48.6 million as compared with a loss of $96.8 million for 1995.
Year-over-year improvements in EBITDA of $20.6 million and $48.2
million for the quarter and full year, respectively, are the results of
improving margins in communications services and for UUNET, partially
offset by operating expense initiatives in response to new
opportunities arising out of the Telecommunications Act of 1996 and
Internet-related service developments.

WORLDCOM MERGER WITH MFS

On December 31, 1996 WorldCom completed the previously announced
merger with MFS, the leading worldwide provider of competitive local
exchange communication services and Internet services to business
customers.

The merger transaction was accounted for under the purchase method
of accounting. However, on a pro forma basis, assuming the acquisition
of MFS and UUNET occurred at the beginning of both periods, revenues
for 1996 were $5.64 billion, an increase of 30 percent from pro forma
revenues of $4.32 billion for 1995.

Commenting on the merger, Ebbers said: "Our ability to close
this deal four months from announcement is indicative of our ability
and intent to move more quickly than our competitors."

Domestic switched revenues for the fourth quarter and full year
1996, on a pro forma basis, were $913 million and $3.32 billion,
respectively. Fourth quarter and full year switched revenue increased
28 percent and 22 percent over the prior year fourth quarter and full
year revenues of $714 million and $2.73 billion, respectively. These
increases were due primarily to strong volume gains and more stable
pricing in the business market.

Domestic private line revenues on a pro forma were $328 million and
$1.17 billion for the fourth quarter and full year, respectively. These
results represent a 35 and 30 percent year-over-year increase for the
fourth quarter and full year, respectively. Private line and frame
relay growth continues to be driven by tremendous demand for high speed
data and Internet related services.

International revenues -- those revenues originated outside of the
United States -- on a pro forma basis, for the fourth quarter and full
year 1996 were $153 million and $469 million, respectively. Both the
fourth quarter and full year pro forma international revenue almost
doubled as compared with $78 million and $242 million, respectively,
for the comparable periods in the prior year. This strong performance
is due to continuing strong traffic growth in the U.K. and a growing
presence in Continental Europe, somewhat offset by more competitive
pricing.

Internet revenues for the fourth quarter and full year on a pro
forma basis were $91 million and $253 million, respectively; up 212 and
254 percent over the prior year fourth quarter and full year pro forma
Internet revenues of $29 million and $72 million, respectively.

Other non-core communications services revenues for the fourth
quarter and full year 1996 on a pro forma basis, were $118 million and
$423 million, up 34 and 10 percent over the comparable periods in the
prior year.

OPERATING RESULTS

Results for the fourth quarter include a $2.14 billion charge for
in-process research and development related to the merger with MFS. The
charge is based upon an independent research and development appraisal,
which valued the technologies of MFS' worldwide information system,
the Internet network expansion system of UUNET, and certain other
identified research and development projects purchased in the merger.
The expense includes $1.6 billion associated with UUNET and $0.54
billion related to MFS.
Additionally, fourth quarter 1996 results include other after-tax
charges of $121 million for employee severance, employee compensation
charges, alignment charges, and costs to exit unfavorable
telecommunications contracts -- all of which will occur in 1997, the
first year of combined operations.

OUTLOOK

Commenting on the outlook for WorldCom, Ebbers said: "WorldCom
is now in a unique position as the only facilities-based, end-to-end
provider offering local, long distance, international and Internet
services to business customers. The pace of regulatory change
experienced this year in the United States and Europe combined with the
rapid adoption of Internet-based technologies for communications
underscore our strong competitive advantage. This, combined with our
overall strong operating performance in the current quarter, gives me
cause for optimism in our ability to continue to create value for our
shareholders."

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 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