ASHBURN, Va., and MEXICO CITY, July 23, 2004 – MCI, Inc. (NASDAQ: MCIP) and Teléfonos de México, S.A. de C.V. (NYSE: TMX; NASDAQ: TFONY) today announced that TELMEX has completed its acquisition of MCI’s equity stake in Brazilian telecommunications provider Embratel Participações (NYSE: EMT).
Under the sale agreement announced on March 15, 2004 and subsequently amended, TELMEX paid an aggregate of U.S. $400 million cash for MCI’s 19.26 percent economic interest and 51.79 percent voting interest in Embratel.
“This sale brings MCI the best of both worlds, helping us maximize our focus on core operations while enabling us to continue to serve our customers,” said Jonathan Crane, MCI president of international and chief strategy officer. “As an integral part of our global strategy, MCI continues to deploy new technologies and services to our business customers in South America.”
Jaime Chico Pardo, CEO of TELMEX, said, “the acquisition of Embratel not only reinforces our international strategy but also enables us to expand our synergies in the region and our offering of state-of-the-art telecommunications products and services on the continent. We have made a long-term commitment to the region and our investments there, and we are confident that TELMEX will play an important part in its telecommunications growth.”
----------
About MCI
MCI, Inc. (NASDAQ: MCIP) is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone, based on the number of company-owned points of presence, and wholly-owned data networks, MCI develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to www.mci.com.
About TELMEX
TELMEX is the leading telecommunications company in Mexico with 16.5 million telephone lines in service, 2.8 million line equivalents for data transmission and 1.6 million internet accounts. TELMEX offers telecommunications services through a fiber optic digital network. TELMEX and its subsidiaries offer a wide range of advanced telecommunications, data and video services, Internet access as well as integrated telecom solutions for corporate customers. Additionally, the company offers telecommunications services through its affiliates in Argentina, Brazil, Chile, Colombia and Peru. More information about TELMEX can be accessed on the Internet at www.telmex.com.
Forward-Looking Statements
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. Factors that may cause actual results to differ materially from management's expectations include economic uncertainty; the effects of vigorous competition, including price compression; the impact of technological change on our business, alternative technologies, and dependence on availability of transmission facilities; risks of international business; regulatory risks in the United States and internationally; contingent liabilities; uncertainties regarding the collectibility of receivables; risks associated with debt service requirements and our financial leverage; uncertainties associated with the success of acquisitions; and the ongoing war on terrorism. More detailed information about those factors is contained in the companies’ filings with the Securities and Exchange Commission.
Contact:
Media
Peter Lucht
MCI
800-644-NEWS
+1-703-886-9310
Media
Arturo Elías
TELMEX
011 52 55 5222 5642
Investors
Susan Watson
MCI
(703) 886-5282
Investors
Alejandro Martínez
TELMEX
011 52 55 5222 5462