ASHBURN, Va. -- MCI (WCOEQ, MCWEQ) today received U.S. District Court approval for its amended proposed settlement with the U.S. Securities and Exchange Commission (SEC). The settlement calls for a civil penalty to the company of $2.25 billion to be satisfied by a $500 million cash payment and $250 million in common stock to shareholders and bondholders upon emergence from Chapter 11 protection.

In his ruling today, Judge Rakoff stated:

"The Court is aware of no large company accused of fraud that has so completely divorced itself from the misdeeds of the immediate past and undertaken such extraordinary steps to prevent such misdeeds in the future."

Referring to the lawsuit filed by the U.S. Securities and Exchange Commission (SEC), Judge Rakoff said the SEC "with the full cooperation of the company's new management and significant encouragement from the Court- appointed Corporate Monitor (Richard C. Breeden, Esq.), has sought something different:

The following statement should be attributed to Michael D. Capellas, MCI chairman and chief executive officer:

"We have made significant strides in rebuilding our company and we believe today's ruling is a positive reflection of the hard work and dedication of MCI's 55,000 employees, the loyalty of our customers and the support of our creditors. We have committed to being a role model of corporate governance and the significant changes we have already implemented are a testament to that commitment.

"Today's approved SEC settlement marks a significant milestone in the company's emergence from Chapter 11 protection, which remains on track for later this fall."

WorldCom Inc.