MCI enters definitive agreement to sell investment in Embratel to TELMEX

Mobile Internet, The, April, 2004

MCI and Telefonos de Mexico, S.A. de C.V., have entered into a definitive agreement to sell MCI's investment in Embratel Participacoes to TELMEX for $360 million in cash. Completion of the sale is subject to approval by the U.S. Bankruptcy Court and Brazilian regulatory authorities with filings to antitrust and securities authorities.

The TELMEX offer was approved by both the MCI Board of Directors and the Official Committee of Unsecured Creditors. The investment in Embratel is a 19.26 percent economic interest and a 51.79 percent voting interest. The sale of MCI's investment in Embratel will have no impact on MCI's customers in Brazil, whose service from Embratel will continue as usual.