Of our two classes of capital stock outstanding, only the common shares have full voting rights. The preferred shares have voting rights under limited circumstances. WorldCom owns 51.79% of Embratel Participações S.A. common shares. Accordingly, WorldCom has the ability to control the election of our board of directors and the direction and future operations of our company. WorldCom, through one of its affiliates, has entered into a management agreement with us. See "- B. Related Party Transactions" below.

The table below provides information on the common shares owned by WorldCom and by our officers and directors as a group. We are not aware of any other shareholder owning more than 5.0% of our common shares.

Name of owner		Number of CommonShares Owned		Percentage of OutstandingCommon Shares
WorldCom		64,405,151,125		51.79%
All directors and executive officers as a group (7 persons)		4,354		0.00%

The following is a brief description of the business activities of WorldCom

Organized in 1983, WorldCom, Inc., a Georgia corporation, provides a broad range of communications services to both U.S. and non-U.S. based businesses and consumers. WorldCom is a global communications company utilizing a strategy based on being able to provide service through its own facilities throughout the world instead of being restricted to a particular geographic location. WorldCom calls this its "on-net" strategy. The on-net approach allows its customers to send data or voice communications across town, across the U.S., or to any of its networks in Europe or Asia, without ever leaving its networks. The on-net approach provides its customers with superior reliability and low operating costs. WorldCom's core business is communications services, which includes voice, data, Internet and international services. During each of the last three years, more than 90% of its operating revenues were derived from communications services.