Posted: 10/2003

… ON ALLEGATIONS MCI ILLEGALLY AVOIDED PAYING ACCESS CHARGES BY CONCEALING
THE ORIGIN OF PHONE CALLS CLAIMS THAT ARE THE FOCUS OF A U.S. ATTORNEYS
OFFICE INVESTIGATION.

[MCIs] scheme … improperly unloaded millions of dollars of debtors
operating expense upon AT&T, and allowed debtors to continue understating
and misrepresenting their true financial position in reports to the court and
elsewhere.

AT&T Corp. in a filing with the U.S. Bankruptcy Court for the
Southern District of New York, objecting to MCIs reorganization plan Preliminary
review of MCIs ongoing internal analysis shows its call termination practices
comply with legal and regulatory requirements and AT&T claims to the
contrary have been made solely for competitive gain.

MCI in an Aug. 4 statement citing a court filing rebutting AT&Ts
allegations We have stated all along there is absolutely nothing in
any business practice we have past or present that is a violation of any
laws or we are doing any intentional damage to any company in the process.

Fritz Hendricks, COO of Onvoy Inc., the Minneapolis-based carrier that has
been accused by AT&T of helping MCI carry out the alleged illegal scheme by
rerouting U.S.-bound phone calls through Canada