Computer Sciences Corporation Announces New Outsourcing Agreement With AT&T - Company Business and Marketing

Cambridge Telcom Report, April 10, 2000

Computer Sciences Corporation (NYSE: CSC) announced Tuesday that it has signed a seven-year, $1 billion outsourcing agreement with AT&T (NYSE: T) to manage the application development and maintenance (ADM) work for the telecommunications giant's Consumer Services organization.

Under terms of the agreement, CSC will manage various software applications in AT&T's Consumer Services billing, credit and collections, ordering, provisioning and customer care areas. CSC will assume responsibility for 635 full time employees located in offices in New Jersey and Texas.

In March, 1999, CSC signed a $300 million, 10-year agreement with AT&T to support a range of applications for AT&T Consumer Services. This new agreement subsumes the original contract.

"Outsourcing these applications will allow us to significantly reduce costs," said A.S.A. (Tony) Wyatt, vice president for AT&T Consumer Services. "These reductions will contribute towards AT&T's goal to reduce costs by $2 billion by year end 2000.

"In our evaluation of CSC, we carefully considered its competitiveness as an employer so that our employees would be well cared for," continued Wyatt. "CSC is a leading company in outsourcing and we believe our people will have excellent and long-term career opportunities there." Wyatt pointed out that compensation packages for affected employees moving from AT&T to CSC were comparable.

"CSC prides itself on developing and maintaining long term productive relationships with clients," Van B. Honeycutt, chairman, president and CEO of CSC, added. "AT&T's expansion of the scope of our applications outsourcing work is very gratifying because it represents a testament to the confidence they have in CSC."

"We have been very pleased with CSC's performance and their ability to provide measurable productivity and service level improvements at significantly lower costs during this past year," said Wyatt. "We look forward to similar results with our expanded relationship."

This is the first major contract win for CSC in fiscal 2001. In the company's fiscal 2000, which ended March 31, CSC announced more than $11.3 billion in U.S. commercial, federal and international contracts.

Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 57,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service offerings, including e-business strategies and technologies; management and I/T consulting; systems development and integration; application software; and I/T and business process outsourcing.

Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $9.1 billion for the twelve months ended December 31, 1999. Its headquarters are in El Segundo, California. For more information, visit the company's web site at www.csc.com.