MCI to Buy More Digex

MCI has commenced a tender offer to purchase all of the outstanding shares of Class A Common Stock of Digex not already owned by MCI

August 27, 2003

1 Min Read

ASHBURN, Va., and LAUREL, Md. -- MCI (WCOEQ, MCWEQ) and Digex, Incorporated (OTC Bulletin Board: DIGX) today announced that MCI has commenced a tender offer to purchase all of the outstanding shares of Class A Common Stock of Digex not already owned by MCI and its subsidiaries for $0.80 per share net to the seller in cash.

In addition to other conditions, MCI's purchase pursuant to the offer is effectively conditioned upon approximately 74.3 percent of the outstanding shares of Class A Common Stock not owned by MCI and its subsidiaries being tendered. If this, and the other conditions to the offer, is satisfied, MCI would then acquire all of the remaining outstanding shares of Class A Common Stock not owned by MCI and its subsidiaries through a "short-form" merger. The transactions have been approved by MCI's Board of Directors. Further, a special committee of Digex's Board of Directors, comprised of directors independent of MCI, has reviewed the offer and is recommending that it be accepted by Digex's unaffiliated holders of shares of Class A Common Stock. The offer is not subject to any financing condition. MCI obtained the authorization and approval for the offer from the U.S. Bankruptcy Court for the Southern District of New York in which its chapter 11 proceedings are pending.

The offer and withdrawal rights are scheduled to expire at midnight, eastern daylight time, on Wednesday, September 24, 2003.

MCI

Digex Inc.

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