Second Quarter Earnings

Unisys Corp
29 June 2000


Media Contact:     Dick Badler, Unisys, 215-986-5916
                                [e-mail]

Investor Contact:  Jim Kerr,    Unisys, 215-986-5795
                                [e-mail] 


Unisys Expects Lower-Than-Anticipated Revenue, Earnings for Second Quarter of
2000 

BLUE BELL, PA, JUNE 29, 2000 -- Unisys Corporation (NYSE: UIS) said today that
it expects to report lower-than-anticipated revenue and earnings per share for
the second quarter of 2000. Unisys indicated that the slower than expected
recovery was caused by deferral to later in the year of several large technology
contracts and continued weakness in its Federal government and financial
services businesses. Also, the company said that based on current rates, it
expects currency translations, particularly in Europe, to have a 3-4 percentage
point negative impact on its revenue in the second quarter and for the year. 

Revenue for the second quarter of 2000 is expected to be $1.62 - $1.65 billion,
a decrease of 13% to 15% compared to a strong quarter a year ago. The company
expects second-quarter 2000 diluted earnings per share, before the previously
announced after-tax extraordinary charge of approximately $20 million for the
retirement of debt, to approximate $.18 - $.20 per share compared to $.37
reported in the second quarter of 1999. Unisys will release its actual
second-quarter results on Tuesday, July 18, before the opening of trading on the
New York Stock Exchange. 

The company expects its second-quarter services revenue and orders to show low
double-digit percentage declines compared to the year-ago period but to be up
sequentially from the first quarter of 2000. 

Unisys said that it expects its technology revenue in the second quarter of 2000
to decline by a high single-digit percentage against very strong levels a year
ago. Technology orders are expected to increase over the year-ago period. The
market acceptance of the Unisys e-@ction ES7000 line of Intel-based,
mainframe-class servers, based on the Unisys Cellular MultiProcessing (CMP)
architecture, is strong. The company said it has begun limited shipments of the
ES7000, with shipments expected to ramp up in the fourth quarter and into 2001.
Unisys also announced today the finalization of its original equipment
manufacturer contract with Compaq Computer Corporation under which Compaq will
deliver Unisys CMP-based systems. (See separate release.) 

Unisys said it expects sequentially improving revenue trends over the remainder
of the year. On a year-over-year basis, because of weak orders in the first
half, the company now expects revenue in the second half of the year to show a
single-digit increase over the second half of 1999. Overall, the company now
expects a mid single-digit percentage decline in full-year 2000 revenue and
earnings per share, excluding the second-quarter extraordinary charge, compared
to 1999 revenue levels. 

'Throughout the industry, customers are turning their attention to new
e-business projects and placing less focus on more traditional solution and
service packages,' said Unisys Chairman and Chief Executive Officer Lawrence A.
Weinbach. 'We are seeing good proposal activity as customers plan their
e-business initiatives. Because of the strategic nature of these initiatives,
purchasing decisions are taking longer than in the past as customers finalize
their strategies before initiating complex e-business implementations. In many
cases, clients are testing the waters by conducting pilot implementations, which
is resulting in delays in the initiation of new contracts. 

'As a result, it is taking longer than we expected to translate our increased
proposal activity into orders and revenue. We expect business to improve
sequentially over the balance of the year as clients move more aggressively into
implementation of their e-business infrastructures. Because of our strengths in
transaction processing, networking, outsourcing, industry solutions, and
large-scale servers, we believe we are well positioned to benefit as this
happens. 

'In our technology business, we see strong market interest for the ES7000 in all
major geographies around the world and are pleased to have finalized our OEM
agreement with Compaq. We believe this new partnership, in addition to our other
OEM and reseller partnerships, will help us drive volume sales of these new
servers into the marketplace. 

'Meanwhile, as customers turn their attention to e-business, we continue to
transition our own portfolio to capitalize on our opportunities as an e-business
infrastructure provider,' Weinbach added. 'We have established major new
partnerships with leading front-end solutions providers in the areas of
e-commerce, e-procurement, and client relationship management. These
partnerships integrate our solutions with those of such leading providers as
Siebel, Intershop, Commerce One, and ICG Commerce, and allow us to offer a
powerful value proposition to organizations in our focused vertical markets. We
are investing heavily in aggressive programs to train our people in selling,
implementing, and supporting these new e-business solutions. While this is a
challenging transition period for us, we believe the work we are doing this year
will put us in a good position to deliver revenue growth in the fourth quarter
and continuing in 2001.' 

Weinbach will host a conference call with the financial community today from
8:45-9:15 a.m. EDT. As is its usual policy, the company will provide a
listen-only audiocast of the conference call via a link on the Unisys investor
Web site (www.unisys.com/investor). 

About Unisys
Unisys is an electronic business solutions company whose 36,000 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
electronic 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 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.: 0600/6938 

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.