WORLDCOM, INC./INTERMEDIA MERGER COMPLETED
CLINTON, Miss., -- July 1, 2001
- WorldCom (NASDAQ: WCOM, MCIT), the leading
global data and Internet company, today announced
that its merger with Intermedia Communications
Inc. has been completed, effective today.
"The closing of the Intermedia merger
finalizes our acquisition of a controlling-interest
in Digex, the industry's leading web-hosting
provider," said Bernard J. Ebbers, president
and chief executive officer of WorldCom. "Now,
we have the freedom to fully utilize Digex's
unique assets to fuel our web hosting expansion
by providing a comprehensive portfolio of mission
critical hosting products and services for businesses
of all sizes."
As a result of the merger, each share of Intermedia
common stock was converted into the right to
receive one share of WorldCom group stock and
1/25 of a share of MCI group stock. Holders
of each of the series of Intermedia preferred
stock, other than Intermedia series B preferred
stock, are entitled to receive one share of
a class of WorldCom preferred stock for each
share of Intermedia preferred stock they own.
The new WorldCom preferred stock has terms that
are substantially similar to the terms of the
Intermedia preferred stock except as described
in the proxy statement/prospectus dated May
14, 2001. Shares of Intermedia series B preferred
stock will remain outstanding as preferred stock
of Intermedia following the merger.
In accordance with the Digex Delaware Stockholders
Litigation settlement, WorldCom contributed
9,896,833 shares of freely tradable WorldCom
group stock and 395,873 shares of freely tradable
MCI group stock ($165 million of securities
based on the prescribed pricing formula) to
a settlement fund to be distributed to Digex
shareholders of record on September 1, 2000
and June 29, 2001.
About WorldCom, Inc.
WorldCom, Inc.
(Nasdaq: WCOM, MCIT) is a preeminent global
communications company for the digital generation,
generation d, operating in more than 65 countries
with 2000 revenues of approximately $39 billion.
WorldCom provides the innovative technologies
and services that are the foundation for business
in the 21st century. For more information, go
to http://www.worldcom.com.
# # #
CONTACT:
Media
Claire Hassett,
800-644-NEWS
WorldCom, Inc.
or
Investor Relations
Scott Hamilton,
601-460-5111,
WorldCom, Inc.
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