Unisys Offers $350 Million of 8.125% Senior Notes; Plans to Redeem Higher-Interest Debt; Company Continues Program to Enhance Its Capital Structure

Business Wire, May 10, 2001

Business Editors/Hi-Tech Writers

BLUE BELL, Pa.--(BUSINESS WIRE)--May 10, 2001

Unisys Corporation (NYSE:UIS) today said it has offered $350 million of 8.125% senior notes due June 1, 2006, as part of its ongoing program to improve its capital structure.

The notes will be offered to the public at 98.98% to yield 8.375%. The company plans to use the proceeds to redeem or otherwise acquire all $334.2 million of its 11 3/4% senior notes due in 2004. The 11 3/4% notes are callable at a premium in October 2001.

"Current favorable market conditions made this a good time for us to prepare for the early retirement of the 11 3/4% notes," said Unisys CFO Janet Brutschea Haugen. "We are very pleased with investor interest in the offering. The refinancing will allow us to eliminate our last remaining piece of high-coupon debt and continue our efforts to reduce interest expense and achieve investment-grade status. The actions we have taken over the past four years have eliminated approximately $285 million of annual interest expense and preferred dividends. We go forward with a capital structure that makes us highly competitive in the marketplace and allows us to pursue aggressively our growth plans in outsourcing and other capital-intensive market opportunities."

This release does not constitute an offer to sell or a solicitation of an offer to buy the notes. Any such offer or solicitation will be made only by means of a prospectus.

About Unisys

Unisys is an e-business solutions company whose 37,000 employees help customers in 100 countries apply information technology to seize opportunities and overcome challenges of the Internet economy. Unisys people integrate and deliver the solutions, services, platforms and network infrastructure required by business and government to transform their organizations for success in this new era.

The company offers a rich portfolio of Unisys e-@ction Solutions for e-business based on its expertise in vertical industry solutions, network services, outsourcing, systems integration and multivendor support, coupled with enterprise-class server and related technologies.

The primary vertical markets Unisys serves worldwide include financial services, transportation, communications, publishing and commercial sectors, as well as the public sector, including federal government customers. Unisys is headquartered in Blue Bell, Pennsylvania, in the Greater Philadelphia area.

For more information on the company, access the Unisys home page on the World Wide Web at www.unisys.com. Investor information can be found at www.unisys.com/investor.> Forward-Looking Statements

Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

The factors that could affect the company's future financial results are discussed more fully in the company's latest Form 10-Q as filed with the Securities and Exchange Commission.

RELEASE NO.: 0501/8008 http://www.unisys.com/news/releases/2001/may/05108008.asp

Unisys is a registered trademark and e-@ction is a trademark of Unisys Corporation. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.