CBOE Lists TARGETS on MCI Worldcom, Inc. (WCOM)

The Chicago Board Options Exchange (CBOE) today began trading a new three year issue of Targeted Growth Enhanced Terms Securities (TARGETS®), a hybrid security whose value is linked to MCI Worldcom common stock (WCOM). Trading under the symbol TWL, the securities were priced at $11.7656, equal to 1/8th of yesterday's closing price of WCOM. Total proceeds of the offering, which was underwritten by Salomon Smith Barney, amounted to $65,887,500. "TWL is another example of the growing demand for securities that combine equity exposure with a debt instrument" said Benjamin D. Krause, Senior Vice President and Senior Managing Director. He went on to add that, "TWL provides investors with a series of fixed payments together with the opportunity for price appreciation up to a maximum of 40 percent or $16.4718 per security". Holders of TWL will receive quarterly cash distributions of $0.1471429 per Targets on each February 15, May 15, August 15, and November 15, in an amount equal to 5% annually. The first such payment to be made on August 15, 1999, however, will be prorated from the date of issue. At maturity, on August 15, 2002 TWL holders will receive the final quarterly cash distribution and an amount equal to the product of (i) the average 10 day price of MCI Worldcom common stock prior to maturity multiplied by (ii) an "Exchange Rate." The exchange rate is determined as follows: If the average 10 day price of MCI Worldcom common prior to maturity is less than or equal to $131.775, the Exchange Rate shall be 0.125. If the average 10 day price of MCI Worldcom common prior to maturity is greater than $131.775, the Exchange Rate shall be a fraction, the numerator being $131.775 times 0.125, and the denominator being the average closing price of MCI Worldcom common. TARGETS represent preferred individual beneficial ownership interests in the assets of TARGETS Trust III, a Delaware business trust. O.T.A. Limited Partnership has been named the Designated Primary Market Maker (DPM) in TWL. Trading hours are 8:30 a.m. to 3:00 p.m. CST. CBOE, regulated by the Securities and Exchange Commission (SEC), is the pioneer of listed options and the world's largest options marketplace. For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com.