Brazilian Group Makes Competing Bid to Buy WorldCom's Brazilian Unit

Brazilian Group Makes Competing Bid to Buy WorldCom's Brazilian Unit
Group Offers US$550 million Cash, Topping Pending US$360 million Bid by Telmex 


SAO PAULO, Brazil, March 25  /PRNewswire/ -- Calais Participacoes, S.A., a
Brazilian company owned by several leading Brazilian companies, today offered to
buy WorldCom Inc.'s (symbol: WCOEQ, MCWEQ) Brazilian subsidiary, Embratel
Participacoes S.A. (symbol: EMT), for US$550 million in cash.  The bid tops the
current US$360 million bid of Telefonos de Mexico, S.A. de C.V. (Telmex)
(symbol: TMX) to buy Embratel, which was announced on March 15, 2004.

Calais is owned by Geodex Communications S.A. and three of Brazil's leading
telecom companies, Brasil Telecom S.A. (symbol: BTM), Telemar Norte Leste S.A.
(symbol: TNE) and SP Telecommunicacoes Holding Ltda., a Brazilian unit of
Telefonica (symbol: TEF).

In its bid delivered earlier today to WorldCom, Calais provided the legal
opinions of six leading Brazilian authorities to support its view that it will
be able to obtain required Brazilian regulatory approvals for the acquisition on
a timely basis.  The experts include a recent President of the Brazilian telecom
regulatory agency, Anatel, and the two leading legal advisors to the Brazilian
governmentand Anatel in the creation of Anatel in 1997.  Calais has also
offered to make an upfront US$50 million deposit that would be forfeited if it
is not able to obtain regulatory approval.

Otavio Azevedo of Telemar Norte Leste S.A. stated: "The Calais offer represents
a 53% premium over the current Telmex bid and would provide WorldCom and its
creditors with an additional US$190 million in cash.  We have asked WorldCom and
its Creditors Committee to meet with us so that we can describe why we are
confident that we will be able to obtain quick regulatory approval for our bid."


DATASOURCE: Calais Participacoes, S.A.



CONTACT:  Michael Sitrick for Calais Participacoes, S.A.,

[phone]

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