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To: Anthony Wong who wrote (2916)	7/15/1998 10:14:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 11568

MCI Exec Says WorldCom Deal Set To Close This Summer July 15, 1998 7:02 PM By Paula L. Stepankowsky LONGVIEW, Wash. (Dow Jones)--The two announcements Wednesday that the U.S. Justice Department approved WorldCom Inc.'s (WCOM) proposed $37 billion acquisition of MCI Communications Corp. (MCIC) and that MCI will sell its Internet business keeps the deal on track to close later this summer, said Michael Rowny, MCI's acting chief financial officer and executive vice president for ventures and alliances. In a conference call, Rowny also made it clear that the combined companies intend not only to remain in the Internet business, but also to make it grow. This despite the fact that MCI, the U.S.'s No. 2 long-distance carrier, agreed Wednesday to sell internetMCI to London's Cable & Wireless PLC (CWP) for an estimated $1.75 billion. The Justice Department approval was long awaited by the companies because it was the last major regulatory hurdle to their merger, although the Federal Communications Commission must also sign off on the deal. The government said the sale will resolve fears that the merger would hurt competition in the emerging Internet industry. Four states, including California, Montana, Pennsylvania and West Virginia, must also approve the merger, Rowny said. Last week, the European Union cleared the deal after demanding similar Internet sales. In the conference call, Rowny said MCI is selling all of its retail Internet service, as well as its wholesale service, to Cable & Wireless. About 1,000 employees will be affected by the sale, Rowny said. He said customers will not experience any interruption to existing service levels, nor will there be any change in addresses, products or features. Proceeds of the Cable & Wireless sale will be used to pay down debt, and Rowny said he doesn't see "any reason arising from this transaction for the range of Wall Street expectations to change for the combined companies." Internet Still Key Part Of Strategy The deal to sell MCI's Internet business to Cable & Wireless, however, excludes all non-public services, such as intranets and extranets, said Rowny, MCI's acting CFO. The deal also has no effect on Internet services offered by WorldCom, something that will allow the combined companies to continue to participate in the Internet, Rowny said. He said as part of the Cable & Wireless sale, there is a 24-month noncompete agreement for wholesale customers and a noncompete agreement of 18 months for retail customers. There is a six-month noncompete agreement for Web-hosting customers. During this period, neither MCI nor WorldCom will be allowed to solicit former customers for services they had through MCI. "But we will be able to sell any unlike services to those customers," Rowny said. "If a customer had only dedicated Internet, MCI could sell that customer Web-hosting." Rowny said the Internet will be a strategic priority for MCI/WorldCom. "While it may have a limited starting basis, it won't limit growth," Rowny said. "MCI/WorldCom will come to market on day one with Internet." -By Paula L. Stepankowsky; 360-636-2008