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WorldCom Issues July and August 2002 Operating Results
Tuesday, October 22, 2002
WorldCom Press Release

CLINTON, Miss.
WorldCom, Inc. today filed its July and August 2002 Monthly Operating Reports with the U.S. Bankruptcy Court for the Southern District of New York. During the month of July 2002, WorldCom recorded $2.464 billion in revenue, $359 million in earnings before interest, taxes depreciation and amortization (EBITDA) and a net loss of $331 million. August 2002 revenue was $2.403 billion, EBITDA was $417 million and the net loss was $98 million.

WorldCom also reiterated that it continues to evaluate its balance sheet and expects to record further write-offs of assets, including the likelihood that it may determine substantially all existing goodwill and other intangible assets, currently recorded as approximately $50 billion, should be written off. The company is also evaluating the carrying value of existing property, plant and equipment as to possible impairment of historic values and the adequacy of the allowance for doubtful accounts receivable. Until this balance sheet evaluation is complete, the company will not issue a balance sheet or cash flow statement as part of the monthly operating report.

The company has changed its accounting treatment for several items including the deconsolidation of Avantel and revenue recognition for reciprocal compensation, presubscribed interexchange carrier charges (PICC), and international settlement revenues. Thus, these monthly reports are not comparable with results from previous periods. In addition, the company will consolidate results of Embratel each quarter as Embratel financial results are publicly released.

WorldCom's Monthly Operating Reports will be available on WorldCom's Restructuring Information Desk at http://www.worldcom.com

Based on current information and a preliminary analysis of its ability to satisfy outstanding liabilities, WorldCom believes when the company emerges from bankruptcy proceedings, its existing preferred stock and WorldCom group and MCI group tracking stock issues will have no value.
(More: WorldCom.com News Source)
2002 © WorldCom, Inc.

Dan