WorldCom, Intermedia Complete Merger

Each share of Intermedia common stock converted into the right to receive one share of WorldCom and 1/25 of a share of MCI group

July 2, 2001

1 Min Read

CLINTON, Miss. -- WorldCom, Inc. (Nasdaq: WCOM - news),the leading global data and Internet company, today announced that itsmerger with Intermedia Communications Inc. has been completed, effectivetoday."The closing of the Intermedia merger finalizes our acquisition of acontrolling-interest in Digex, the industry's leading web-hostingprovider," said Bernard J. Ebbers, president and chief executive officer ofWorldCom. "Now, we have the freedom to fully utilize Digex's unique assetsto fuel our web hosting expansion by providing a comprehensive portfolio ofmission critical hosting products and services for businesses of allsizes."As a result of the merger, each share of Intermedia common stock wasconverted into the right to receive one share of WorldCom group stock and1/25 of a share of MCI group (Nasdaq: MCIT - news) stock.olders of each ofthe series of Intermedia preferred stock, other than Intermedia series Bpreferred stock, are entitled to receive one share of a class of WorldCompreferred stock for each share of Intermedia preferred stock they own. Thenew WorldCom preferred stock has terms that are substantially similar to theterms of the Intermedia preferred stock except as described in the proxystatement/prospectus dated May 14, 2001. Shares of Intermedia series Bpreferred stock will remain outstanding as preferred stock of Intermediafollowing the merger.In accordance with the Digex Delaware Stockholders Litigation settlement,WorldCom contributed 9,896,833 shares of freely tradable WorldCom groupstock and 395,873 shares of freely tradable MCI group stock ($165 million ofsecurities based on the prescribed pricing formula) to a settlement fund tobe distributed to Digex shareholders of record on September 1, 2000 and June29, 2001.WorldCom Inc.

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