United States Securities and Exchange Commission

Litigation Release No. 17753 / September 26, 2002

   Accounting and Auditing Enforcement Release No. 1635 / September 26,
   2002

                SEC Charges Former WorldCom Controller Myers
         With Participating In Multi-Billion Dollar Financial Fraud

   The Securities and Exchange Commission today filed a civil enforcement
   action against David F. Myers, formerly the Controller and a Senior
   Vice President of WorldCom, Inc., and a CPA. The Commission charges
   that Myers participated in a massive fraud that inflated the company's
   earnings at the direction and with the knowledge of WorldCom's senior
   management. Also today, in connection the same conduct, Myers pled
   guilty to criminal charges filed by the U.S. Attorney's Office for the
   Southern District of New York.

   The Commission's action against Myers is its second civil enforcement
   action related to the WorldCom fraud. The first was filed against
   WorldCom, Inc. on June 27 of this year. (Litigation Release No.
   17588.) Since then, WorldCom has admitted that beginning in 1999, as a
   result of undisclosed and improper accounting, it materially
   overstated the income it reported in its financial statements by
   approximately $7.2 billion. It has also filed for bankruptcy under
   Chapter 11 of the U.S. Bankruptcy Code.

   The Commission's complaint filed today against former Controller Myers
   alleges that in the second half of 2000, by improperly decreasing
   certain reserves to reduce "line costs" (expenses for accessing the
   networks of other telecommunications companies), Myers and others
   caused WorldCom to overstate pre-tax earnings by at least $1.2
   billion. Thereafter, from the first quarter 2001 through the first
   quarter 2002, Myers and others improperly capitalized certain line
   costs, which resulted in an overstatement of WorldCom's pre-tax
   earnings by approximately $3.8 billion. During the same period, Myers
   and others, including members of senior management, made materially
   false or misleading statements or omissions to WorldCom's independent
   auditors in connection with audits and the preparation of filings with
   the Commission.

   For this misconduct, the complaint charges Myers with violating
   numerous provisions of the federal securities laws, including the
   antifraud, books and records, internal controls, and lying-to-auditors
   provisions (Section 17(a) of the Securities Act of 1933 ("Securities
   Act") and Sections 10(b) and 13(b)(5) of the Securities Exchange Act
   of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, 13a-13,