Unisys Announces Strategy Aimed at Driving Profitable Growth; Higher value portfolio backed by strategic alliances and simplified sales and delivery approach are key

Business Wire, Nov 2, 2005

LONDON -- Unisys Corporation (NYSE:UIS) outlined details of an aggressive strategy intended to put the Blue Bell, Pa.-based company in a position for profitable growth. The strategy builds on the company's strengths in secure, mission-critical operations and is designed to strengthen and focus the company's products and solutions portfolio, service delivery model and operational management.

"Today we are announcing a focused approach to deliver the benefits of secure business operations to make a visible difference to our clients' businesses," said Unisys president and CEO, Joe McGrath. "The plan we're putting in place addresses the challenges we face today, and we believe it will allow Unisys to assume a leadership position in our focus markets."

Realigned Product and Solutions Portfolio

Unisys plans to focus its services and solutions portfolio on five fast-growing market segments. The five high-growth areas include initiatives in enterprise security, Microsoft enterprise software, open source and Linux support and solutions, outsourcing and real-time infrastructure. Building on its strengths in mission-critical computing, online transaction processing, IT services and security, Unisys plans to deliver solutions in these areas through the company's vertical industry business units and its technology and IT services businesses. In each of the focus areas, the company will rely on the Unisys 3D Visible Enterprise (3D-VE) strategy, designed to give clients true visibility into their business and IT operations, so they can see the critical linkages and results of business decisions even before they make them.

Alliance Partners to Play Major Role in Unisys Growth Initiatives

Alliance partnerships with a select group of world-class IT companies that are leaders in their respective markets are a key factor in the development and delivery of Unisys refocused portfolio. The reinvigorated alliance program includes expanded relationships with IBM, Intel, Microsoft and Oracle in the areas of joint sales, solutions delivery and engineering.

Executing for Success: Focus and Simplicity

To deliver this portfolio, Unisys is changing its customer, delivery and operational management strategies to maximize effectiveness for clients, create greater focus and simplicity in its business, and drive cost efficiencies.

Unisys plans to focus operations on its top 500 accounts around the globe, which yield approximately 85 percent of the company's sales. Unisys will continue to offer the full Unisys portfolio to these clients. In other account tiers, Unisys intends to change customer engagements to a simplified "client focus" model that delivers services and solutions based on specific client requirements. In addition, Unisys plans to further develop its use of global sourcing, including operations in India, China and Eastern Europe, to provide clients with the benefit of lower cost services wherever practical.

The Unisys strategy calls for reinforcing the company's network of client engagement delivery centers in key locations around the globe. The company plans to develop integrated horizontal competency centers and geographically centralize its delivery resources to complement its five focused growth areas, maximizing the skills available to create and deliver solutions for clients.

New sales and alliances leadership worldwide will drive execution of these new operational initiatives.

"We expect these changes to position Unisys in large, mainstream, high-growth markets," said McGrath. "The changes we are making are designed to enable us to meet client needs with value-added, relevant services and solutions, and we are looking to them to drive us to increased profitability and revenue growth."

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. Forward-looking statements include, but are not limited to statements of the company's expectations, plans, strategies or objectives. 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. In particular, statements regarding the expected results of the strategy outlined in this release are based on various assumptions, including assumptions regarding market segment growth, client demand, cost efficiencies and the success of expanded alliance programs, all of which are subject to change. A discussion of other factors that could affect Unisys future results is contained in its periodic filings with the Securities and Exchange Commission. Unisys assumes no obligation to update any forward-looking statements.

About Unisys

Unisys is a worldwide technology services and solutions company. Our consultants apply Unisys expertise in consulting, systems integration, outsourcing, infrastructure, and server technology to help our clients achieve secure business operations. We build more secure organizations by creating visibility into clients' business operations. Leveraging Unisys 3D Visible Enterprise, we make visible the impact of their decisions--ahead of investments, opportunities and risks. For more information, visit www.unisys.com.