EXHIBIT 99.1
CONTACT: MEDIA MEDIA
Les Kumagai Arturo Elias
MCI TELMEX
800-644-NEWS 011 52 55 5222 5642
+1-703-886-9310
INVESTORS INVESTORS
Gregory Pettit Alejandro Martinez
MCI TELMEX
877-624-9266 011 52 55 5222 5462
+1-703-886-9310
MCI ENTERS DEFINITIVE AGREEMENT TO SELL INVESTMENT IN EMBRATEL TO TELMEX
TRANSFER OF EQUITY STAKE WILL BE TRANSPARENT TO EMBRATEL AND MCI CUSTOMERS IN
BRAZIL
ASHBURN, VA. and MEXICO CITY, MARCH 15, 2004 - MCI (WCOEQ, MCWEQ) and Telefonos
de Mexico, S.A. de C.V. (BMV: TELMEX; NYSE: TMX; NASDAQ: TFONY; LATIBEX: XTMXL)
have entered into a definitive agreement to sell MCI's investment in Embratel
Participacoes (NYSE: EMT; BOVESPA: EBTP3, EBTP4) to Telefonos de Mexico (TELMEX)
for $360 million in cash. Completion of the sale is subject to approval by the
U.S. Bankruptcy Court and Brazilian regulatory authorities with filings to
antitrust and securities authorities. The TELMEX offer was approved by both the
MCI Board of Directors and the Official Committee of Unsecured Creditors.
The investment in Embratel is a 19.26 percent economic interest and a 51.79
percent voting interest. The sale of MCI's investment in Embratel will have no
impact on MCI's customers in Brazil, whose service from Embratel will continue
as usual.
"MCI will have an ongoing relationship with Embratel, enabling us to continue to
provide our Brazilian customers with the highest quality services," said
Jonathan Crane, MCI executive vice president and chief strategy officer.
"Through Embratel, and ultimately, TELMEX, MCI will have the opportunity to
deploy new technologies and services to more business customers in South
America."
"Brazil is South America's largest economy and Embratel is among Brazil's most
highly respected and competitively-driven telecommunications companies," said
Jose Formoso, executive vice president of TELMEX international operations. "This
combination presented extremely attractive opportunities to TELMEX - to
establish our presence in a growing market and to work alongside Embratel to
continue building upon the solid business and service reputation they have
established in Brazil. We look forward to a successful partnership with Embratel
and its employees."
ABOUT WORLDCOM, INC.
WorldCom, Inc. (WCOEQ, MCWEQ), which, together with its subsidiaries, currently
conducts business under the MCI brand name, is a leading global communications
provider, delivering innovative, cost-effective, advanced communications
connectivity to businesses, governments and consumers. With the industry's most
expansive global IP backbone, based on the number of company-owned
points-of-presence (POPs), and wholly-owned data networks, WorldCom develops the
converged communications products and services that are the foundation for
commerce and communications in today's market. For more information, go to
http://www.mci.com.
(MORE)
ABOUT TELMEX
TELMEX is Mexico's leading telecommunication company, with 15.4 million lines in
service, 2.2 million lines for data transmission and 1.4 million Internet access
accounts. TELMEX offers telecommunication services through a digital fiber optic
network with an extension of over 74 thousand kilometers. TELMEX and its
subsidiaries are offering a wide range of communication, data and video
transmission and Internet access services, as well as integral telecommunication
services for its corporate clients. You can find more information on TELMEX at
www.telmex.com.
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FORWARD-LOOKING STATEMENTS
This press release 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 company's bankruptcy proceedings and matters
arising out of pending class-action and other lawsuits and ongoing internal and
government investigations relating to the previously announced restatement of
its financial results. Other factors that may cause actual results to differ
materially from management's expectations include economic uncertainty; the
effects of vigorous competition, including price compression; the impact of
technological change on our business, alternative technologies, and dependence
on availability of transmission facilities; risks of international business;
regulatory risks in the United States and internationally; contingent
liabilities; uncertainties regarding the collectibility of receivables; risks
associated with debt service requirements and our financial leverage;
uncertainties associated with the success of acquisitions; and the ongoing war
on terrorism. More detailed information about those factors is contained in the
company's filings with the Securities and Exchange Commission. We will continue
to file documents with the Securities and Exchange Commission under the
WorldCom, Inc. name until the effective date of the Plan of Reorganization.
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