Responding to the August 8 disclosure that an internal financial review uncovered an additional $3.3 billion in improperly reported earnings.

August, 2002

On Thursday, August 8, WorldComSM disclosed that our ongoing internal financial review uncovered an additional $3. 3 billion in improperly reported earnings from 1999 and 2000. In light of this finding, we will restate our 2000 financial results, as well as the results from 2001 and first quarter 2002.

Although I have previously indicated that additional past transgressions were likely to be found, this discovery is disappointing to me – as it is to WorldCom ’s more than 60, 000 dedicated employees. I hope you understand that these events are indicative of our commitment to re-build your confidence in us by getting to the bottom of any past irregularities and disclosing them promptly.

I want you to know that this announcement in no way affects our ability to provide you with the robust services you have come to rely upon. Nor does it have any impact on our cash position. We are correcting misstatements from the past, so that we can move forward with the highest possible financial health and integrity.

I would like to give you an update on our restructuring process. Last week, we had our first meeting with our Official Committee of Unsecured Creditors under the Chapter 11 reorganization process. We expressed our clear intention to maintain the quality of our service to customers, and we expressed our commitment to working with the Committee on a consensual reorganization plan. This was a very productive meeting and an important first step toward WorldCom ’s emergence from reorganization.

As you might imagine, this is a trying time for WorldCom. Many of us have spent years, or even entire careers, dedicated to bringing competition, choice, and innovation to the telecommunications market. We are proud of these accomplishments, and it is this pride that fuels our drive to rebuild the public's trust in us. We remain confident that, with your continued support, we will continue to provide you with high-quality service long into the future.

Thank you for your support.

John Sidgmore
President and CEO
WorldCom, Inc.

Dan