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To: mmeggs who wrote (3074)	7/29/1998 11:23:00 AM
From: David Klein	Read Replies (2) \| Respond to of 11568

What is a reais worth in dollars??? Wednesday July 29, 10:51 am Eastern Time MCI confirms it sole owner of Embratel RIO DE JANEIRO, July 29 (Reuters) - MCI Communications Corp. said on Wednesday it was the sole winning bidder for Embratel, the long-distance and international carrier of Brazilian telephone firm Telebras (TBR - news). Speaking at a news conference after the auction, MCI's senior vice-president Jerry deMartino said MCI now owned 100 percent of Embratel. The winning bid came in at 2.65 billion reais, 47.22 percent above the company's asking price. ''We own 100 percent (of Embratel)...and we might look at other partnerships later,'' he said, without elaborating. ''Embratel has the best name in telecommunications in Brazil. It is a company with sufficient cash for the new investments necessary just to meet service obligations.'' The auction went to open outcry after a group thought to include U.S. carrier Sprint (FON - news) bid 2.49 billion reais -- higher than MCI's bid but not enough for an outright win. The sale of Embratel closed the first phase of the Telebras auction. Next up are four cellular companies covering the most developed areas of Brazil. A final stage of the auction would include four cellular companies from less developed areas.

To: mmeggs who wrote (3074)	7/29/1998 3:14:00 PM
From: Teddy	Read Replies (1) \| Respond to of 11568

Purchase Of Brazil's Embratel Fits Growth Strategy - MCI Dow Jones Newswires -- July 29, 1998 NEW YORK (Dow Jones)--MCI Communications Corp. (MCIC) said its purchase of Embratel, the Brazilian long-distance telephone company, complements the telecommunication giant's global growth plans. As reported, MCI emerged as the winning bidder for Empresa Brasileira de Telecomunicacoes, known as Embratel (E.EMB), one of 12 telecommunications units auctioned off by Brazil's government as part of the privatization of the country's telecommunications holding Telecomunicacoes Brasileiras, known as Telebras (TBR). MCI paid $2.26 billion for Embratel. In a press release, MCI said its offer was within MCI's valuation of the company. MCI is expected to pay 40% of the bid price within the next five days, with the balance due in two annual installments. "Embratel is an ideal fit for MCI's and WorldCom's (WCOM) international growth strategy and extends the companies' local-to-global approach," MCI's statement said. "Embratel's wholly-owned nationwide and international network meshes well with MCI's and WorldCom's global initiatives and complements the companies' plans with Telefonica (TEF)," the statement added. Michael Rowny, executive vice president and acting chief financial officer, noted that with full deregulation occurring in 2002, Embratel's "addressable market will grow to more than $30 billion, making it one of the most attractive opportunities in the world."