MCI: Qwest's Acquisition Offer Superior To Verizon's

Ashburn, VA -- MCI today announced that its Board of Directors has determined that Qwest Communications International's latest offer to acquire the company is superior to the terms of the current MCI/Verizon merger agreement.

Under the terms of the MCI/Verizon merger agreement, Verizon has five business days (through Friday, April 29, 2005) to respond with a revised proposal.

Under Qwest's irrevocable offer, MCI's Board of Directors has until May 3, 2005, to change its current recommendation in favor of the MCI/Verizon merger agreement.

On April 21, 2005, Qwest presented MCI with a revised offer comprised of $16 in cash (excluding MCI's March 15 dividend payment of $0.40 per share) and 3.373 Qwest shares (subject to adjustment under a collar which fixes the value of the Qwest shares at $14.00 provided Qwest's share price is between $3.32 and $4.15) per MCI share.

On March 29, 2005, MCI and Verizon amended their merger agreement. Under that agreement, each MCI share would receive cash and stock worth at least $23.10, comprising $8.35 (excluding MCI's March 15 dividend payment of $0.40 per share) as well as the greater of 0.4062 Verizon shares for every share of MCI Common Stock or Verizon shares valued at $14.75.

Source: MCI