Department of Health and Human Services Awards Unisys IT Outsourcing Contract with Three-Year Base Period Worth Approximately $65 Million

Business Wire, Nov 8, 2005

BLUE BELL, Pa. -- IT Outsourcing Allows Eight HHS Operating Divisions to Focus on Their Missions as HHS Continues Its "One Department" Transformation

Unisys Corporation (NYSE:UIS) announced today that the U.S. Department of Health and Human Services (HHS) awarded the company an information technology outsourcing contract under which Unisys will support 8,000 users across eight HHS operating divisions. The contract has a three year base period, which is worth approximately $65 million, and one two-year option period, exercisable at the government's discretion, which is worth approximately an additional $35 million. Year one of the contract is valued at approximately $22 million.

HHS, like most enterprises, faces ever-increasing demands for more and better IT solutions that enable users to increase both productivity and efficiency. Rapidly changing technologies, tighter security requirements and scarcity of IT funds exacerbate the challenge.

To help the department and its clients succeed in this dynamic environment, Unisys will work with HHS to achieve IT standardization, which will increase interoperability, decrease cost while increasing service delivery performance, and lead to enhanced constituent satisfaction.

The IT service center (ITSC) IT infrastructure support services contract will transform these eight HHS operating divisions from a government-owned, contractor-operated environment into a contractor-owned, contractor-operated environment. Unisys will provide and refresh all desktop and computing assets on a regular basis, and provide managed services including desktop support, server support, service desk, server consolidation, continuity of operations/disaster recovery, training, application and server hosting, security operations, system and network monitoring and database and application administration.

The Unisys solution for this contract leverages considerable knowledge of the IT infrastructures, security requirements and the unique, mission-driven requirements of HHS, gained through the execution of other large programs, including:

--the design and delivery of the HHS enterprise email solution;

--the consolidation and management of the Centers for Disease Control and Prevention's mid-tier data center;

--operation and support of the department's Unified Financial Management System; and

--development and implementation of financial management systems and the IT services consolidation program at the Food and Drug Administration.

As a key element of HHS' "one department" initiative to modernize the IT environments of its operating divisions, maximize effectiveness and efficiency of the services it provides and eliminate duplication, the agency established a consortium of its eight small operating divisions. The consortium in turn created the ITSC, a consolidated service delivery structure responsible for management of the group's IT infrastructure and services.

"Our vision for this program is one in which IT services are provided so reliably, users can take them for granted and instead concentrate on their agencies' strategic issues and missions," said Greg Baroni, president, Unisys Global Public Sector.

Among the benefits HHS should realize via this IT outsourcing program, said Baroni, are continued performance improvement and service levels; lowering of costs; achievement of standards-based solutions and an overall shift from managing technology to managing the achievement of their core missions.

About HHS Small Operating Divisions

The eight agencies under HHS that will benefit from the Unisys IT outsourcing solution are the Administration for Children and Families; the Administration on Aging; the Agency for Healthcare Research and Quality; the Health Resources and Services Administration; the Substance Abuse and mental Health Services Administration; the Office of the Inspector General; the Office of the Secretary; and the Program Support Center.

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.

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 uncertainties that could cause actual results to differ materially from expectations. In particular, statements regarding the value of the contract are based on the assumption that the number of government users of managed services will remain at the current level. Statements regarding the total value of the contract are based on the additional assumption that the government will exercise all options, which is entirely at its discretion. Further, since contracts with governmental entities are terminable before the end of their terms and are subject to the availability of funding, the contract value is not guaranteed. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.