Unisys Awarded New $31 Million Contract to Support Department of Defense Healthcare Initiative; Military Health Care System is at Forefront of Electronic Medical Record Mandate

Business Wire, Sept 9, 2004

BLUE BELL, Pa. -- Unisys Corporation (NYSE:UIS) today said the U.S. Department of Defense (DoD) awarded a contract with an estimated value of $31 million to provide worldwide implementation and training services to support the department's electronic medical record system. This system, known as the Composite Health Care System (CHCS II), will provide electronic medical records for approximately nine million military healthcare beneficiaries, including active-duty military personnel, retirees, reservists and family members.

The multi-million dollar contract calls for Unisys to provide implementation and training to support CHCS II, with a base contract term of one year valued at an estimated $31 million. Unisys can earn up to an additional $2 million in the base year by meeting or exceeding various performance measurements. There are three one-year options that are priced the same as the base year. If all option years are exercised by the DoD and the additional $2 million is earned in each option year, the total value of the contract could reach more than $130 million.

"The DoD deserves credit for being at the vanguard of this emerging healthcare issue," said Greg Baroni, president, Unisys Global Public Sector. "The services Unisys provides in support of this contract will ultimately help make life easier for millions of American military men, women and families."

With a large active-duty military and a growing population of veterans, it is critical for the DoD to maintain accurate, instantly available electronic medical records on military personnel. In an average week, CHCS II will capture, track, and maintain records on:

--1,600,000 prescriptions filled

--1,008,000 outpatient visits

--674,000 dental procedures

--11,000 medical admissions

--1,900 births

This program and the Unisys services supporting it place the Military Health System at the forefront of the initiative to carry out President Bush's April 2004 executive order calling for "widespread adoption of interoperable EMRs (electronic medical records) within 10 years."

CHCSII Serves People in the Air, on Land and at Sea

The DoD's CHCS II system maintains medical records for life, is easy to use and can be accessed quickly - crucial in this era of rapid deployment and unprecedented threats both to the homeland and American interests abroad.

CHCS II was developed to deliver health care in all Army, Navy and Air Force military hospitals and clinics, aboard ships and in deployed medical facilities. The system integrates government-owned software with commercial off-the-shelf products.

In future releases, CHCS II will maintain pre- and post-deployment physical examination records of all troops, along with information about chemical or biological agents to which a service member might have been exposed throughout their military career. That data can be electronically transmitted to the Veterans Administration, helping to ensure appropriate follow-up care and benefits for veterans and their dependents.

Training is Key

Under the contract, Unisys will provide training for approximately 60,000 DoD healthcare personnel (providers, nurses, support staff and clerks) at 75 military hospitals and 600 clinics worldwide. Trainers will have experience both in healthcare and training and will understand the business processes and workflow of providing care in military treatment settings.

Implementing and Managing IT Infrastructure

Unisys will provide a range of services to implement and manage the IT infrastructure for the program, including program management; site surveys; installation, configuration and testing of end-user devices, such as desktop computers; configuration management; on-site support as required; and documentation.

The performance-based contract was awarded under D/SIDDOMS III, an $8 billion, 10-year, indefinite quantity/indefinite delivery multiple-award contract. D/SIDDOMS III allows the military health system and the Department of Veterans Affairs to acquire services such as systems integration, design, development, operations and maintenance, in addition to components for the TRICARE Management Activity.

From the executive summary of the U.S. Department of Health and Human Services' July 21 conference: The Decade of Health Information Technology: Delivering Consumer-centric and Information-rich Health Care.

About Unisys

Unisys is a worldwide information technology services and solutions company. Our people combine expertise in consulting, systems integration, outsourcing, infrastructure and server technology with precision thinking and relentless execution to help clients, in more than 100 countries, quickly and efficiently achieve competitive advantage. For more information, visit www.unisys.com.

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. This is a cost reimbursement contract that includes in each year a firm base fee and an additional fee that may be earned by meeting or exceeding various performance measures. Statements in this release regarding the estimated value of the contract are predicated on the assumption that the actual costs of performance will be consistent with the currently estimated costs. Statements in this release regarding the estimated potential total value of the contract are based on that assumption as well as the additional assumptions that the government will exercise all of the option years, which is entirely within the government's discretion, and that Unisys will earn the maximum award fee in each of the contract years. Further, because contracts with government agencies are terminable before the end of their terms and are subject to the availability of appropriated funds, the estimated values in this release are not guaranteed. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.