Unisys Signs $31.6 Million Contract with California Employment Development Department; Overhaul of Critical Business Applications, Strategy for Microsoft.NET Enhance Implementation of Secure Business Operations for the Customer

Business Wire, March 6, 2006

BLUE BELL, Pa. -- Unisys Corp. (NYSE:UIS) announced today that the California Employment Development Department (Cal EDD) awarded the company a six-year, $31.6 million contract to upgrade and expand the tax engineering and modernization system that Unisys originally implemented in 2000. The system is central to the state's capability to calculate and collect employment taxes.

The Document Management Refresh and Consolidation (DMRC) is the state's enterprise document management and remittance solution implemented by Unisys that processes employment-related tax payments from businesses operating in California. It will help reduce Cal EDD's costs by consolidating similar mission-critical processes into one system, providing easier system manageability and increased reliability through the use of new tools and technologies.

DMRC is designed to provide the reliability and availability necessary in a system that collects more than $1 billion dollars each day during peak periods and $35 billion annually in employment taxes for the state. It is integral to the operations of the state's ground-breaking Paid Family Leave system, and is expanding to process approximately 17 million weeks claimed and pay out more than $4.8 billion in unemployment insurance benefits in 2006.

Unisys will provide a range of managed services for this DMRC project -- upgrading and replacing critical business applications and equipment, including the existing network infrastructure, server and workstation equipment; consolidating applications; and establishing a Microsoft.NET architecture strategy for Cal EDD.

The Unisys solution is designed to help Cal EDD realize the benefits of secure business operations: greater agility in IT management and higher availability of critical infrastructure, improved operational efficiency and cost control, and enhanced performance in service to the state's taxpayers.

"By continuing our strong relationship, Unisys can provide Cal EDD with even more innovative, services-based solutions for secure business operations that help streamline the business of government and enhance services to California's workers," said Greg Baroni, president, Unisys Global Public Sector.

About Cal EDD

Cal EDD is the nation's largest employment department and the state's largest tax collection agency, collecting more than $35 billion in taxes each year. Cal EDD also handles the audit and collection payroll taxes and maintains employment records for more than 17 million California workers. The department employs about 10,000 people at hundreds of locations statewide.

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 press 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 in this release regarding the value of the contract are based on the assumption that the contract will run for its full term. However, since contracts with government agencies are terminable before the end of their terms and are subject to 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.

RELEASE NO.: 0306/8629

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