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 WASHINGTON, Oct. 21 /PRNewswire/ -- MCI Communications Corporation (NASDAQ: MCIC) achieved double-digit increases in revenue and traffic, resulting in operating income growth of more than 16 percent in the third quarter, versus the year ago quarter. The company's 13.9 percent revenue growth and 14.7 percent growth in traffic were the highest in more than a year. This led to an earnings per share increase of nearly 14 percent, to 33 cents, before a one-time charge of 3 cents per share due to tax law changes.
 -- Third quarter 1993 revenue increased nearly 14 percent, to
 $3.054 billion, versus third quarter 1992 revenue of
 $2.682 billion. Revenue increased more than 4 percent from the
 second quarter of 1993. Once again, the company reported record
 operating income -- $359 million -- up more than 16 percent over
 the previous year's quarter.
 -- Earnings increased to 33 cents per share, excluding a one-time
 charge of approximately $18 million, or 3 cents per share, due to
 changes in tax laws. Including the one-time charge, earnings
 were $174 million, compared to $154 million, or 29 cents per
 share, reported in the year ago quarter.
 "Our third quarter performance shows MCI is making the right investments in people, products and technologies, and the marketplace is responding" said Bert C. Roberts Jr., MCI chairman and CEO.
 "Our success can be attributed to our strategy of remaining closely focused on the individual market segments, organizing our business operations to quickly take advantage of market opportunities and turning these into profitable results," Roberts said.
 Contributing to across-the-board growth during the quarter, Roberts cited MCI's continued success in winning 800 service business as a result of 800 portability and Fresh Look marketing efforts -- more than $1 billion in multi-year Fresh Look contracts were signed. Other contributing factors included increases in traffic volumes from MCI's flagship Friends & Family services, as well as new revenue generated from innovative services such as 1-800-COLLECT and Proof Positive, MCI's savings guarantee program for small and medium-sized businesses. MCI also continued its record of success in the financial industry, winning multimillion dollar contracts from Merrill Lynch and NASDAQ during the quarter.
 Another highlight was the execution of agreements between MCI and British Telecommunications plc to form a worldwide strategic alliance and create a joint venture company to provide advanced global services to multinational companies. The complex agreements, completed in just two months, are enabling the two companies to move rapidly forward with the global joint venture, pending regulatory and shareholder approvals, according to Roberts.
 Also during the quarter, MCI made a major strategic move designed to position the company for future growth. This involved consolidating U.S. operations under a new unit, MCI Communications Services, responsible for MCI's domestic long distance business; creation of MCI International Group, which encompasses all of MCI's international activities, including alliances and serving multinational firms; and giving the Strategy and Technology group full responsibility for the management and development of emerging technologies and services.
 Roberts also noted that Standard and Poors has upgraded MCI's senior unsecured debt rating from BBB+ to A- and its commercial paper rating from A-2 to A-1.
 "Our outstanding quarter provides further evidence that this three- pronged strategy is yielding benefits for MCI and its shareholders," said Roberts. "I expect this trend will continue as we move forward to build our business domestically, compete more aggressively on a global scale and pursue emerging opportunities such as PCS and multimedia."
 -0- 10/21/93
 CONTACT: Pam Small, Corporate News Bureau, MCI Communications Corporation, 1-800-289-0073 or 202-887-2068/

CO: MCI Communications Corporation ST: District of Columbia IN: TLS SU: ERN

MH-DS -- DC008 -- 4963 10/21/93 08:23 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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