3rd Quarter Results

Unisys Corporation
                  

Unisys Announces Final Third-Quarter 2005 Financial Results; Company
Takes $1.6 Billion Non-Cash Charge for a Deferred Tax Asset Valuation Allowance;
Company Drives Action Plan to Refocus Its Business Model for Profitable Growth

Unisys Corporation (NYSE:UIS) announced today its final third-quarter 2005
financial results. The company's preliminary results, issued on October 18,
2005, were updated to reflect the results of the completed review of its net
deferred tax assets. This review resulted in the company recording an additional
valuation allowance of $1.57 billion, or $4.62 per share. This non-cash charge
does not affect the company's compliance with the financial covenants under its
credit agreements.

'We conducted the review of our deferred tax assets and, given our recent
operating losses, have reserved against all of our deferred tax assets in the
U.S. and certain international subsidiaries,' said Unisys President and CEO
Joseph W. McGrath. 'As we announced on October 18, Unisys is pursuing an
aggressive series of actions to restructure its business model, focus on
high-growth markets, and reduce its cost structure. I believe the plan we have
put in place will enable us to significantly enhance our profitability over the
coming years. As we generate taxable income in the future, these deferred tax
assets could be realized over time.'

Including the $1.57 billion non-cash charge, as well as the pre-tax charge of
$10.7 million related to the company's cash tender for its 8 1/8% notes due
2006, the company reported a third-quarter 2005 net loss of $1.63 billion, or
$4.78 per share. This compared with third-quarter 2004 net income of $25.2
million, or 7 cents per diluted share. The year-ago results included a net
benefit of $8.2 million, or 2 cents per diluted share, from a tax benefit net of
a charge for cost reduction actions.

After this increase in its valuation allowance, the company now has a full
valuation allowance against its deferred tax assets for all of its U.S.
operations and certain foreign subsidiaries. The increase to the valuation
allowance was due to the company's assessment of a number of factors. These
factors include its recent financial performance, its reduced 2005 financial
expectations as communicated in the company's October 18, 2005 preliminary
earnings release, and the impact over the short term of its recently announced
plan to restructure its business model by divesting non-core businesses,
reducing its cost structure, and focusing on high-growth core markets.

The company's plan to restructure its business model announced last month
involves taking actions in the following areas:

    --  Focused investments. The company will focus its resources on high-growth
        market areas - outsourcing, open source/Linux, Microsoft solutions, and
        security - delivered through a vertical industry focus. Within its
        technology business, the company remains strongly committed to its
        ClearPath and ES7000 systems and will continue to invest in operating
        systems and software to drive continuous improvements in new features
        and capabilities.

    --  Divestitures. As it concentrates its resources on the areas discussed
        above, the company plans to divest non-strategic areas of the business
        and use the proceeds from such asset sales or divestitures to implement
        cost reduction actions, fund its core growth businesses, and pursue
        complementary tuck-in acquisitions.

    --  Cost reduction. The company plans to rightsize its cost structure to
        support its more focused business model and to improve margins. As a
        result of a series of actions in services delivery, research and
        development, and selling, general, and administrative areas, the company
        plans to reduce its headcount by 10% of its current workforce over the
        next year. Unisys expects to take cost restructuring charges of
        approximately $250 - $300 million through 2006 for these actions. These
        actions are expected to yield approximately $250 million of annualized
        cost savings on a run-rate basis by the end of 2007.

    --  Sales and marketing. The company continues to make significant changes
        to its sales and marketing programs to support its more focused model
        and drive profitable order and revenue growth. In the sales area, Unisys
        has recently significantly strengthened its business development skills
        by recruiting first-class sales management and personnel and by
        implementing high-impact training to more effectively manage
        relationships with large accounts and drive new business.

    --  Focused Alliances. The company is focused on driving profitable growth
        by expanding its activities with a select group of world-class
        information technology firms. Unisys recently signed a memorandum of
        understanding with NEC Corporation to negotiate a partnership to
        collaborate in technology research and development, manufacturing, and
        solutions delivery. The alliance would cover a number of areas of joint
        development and solutions delivery activities focusing on server
        technology, software, integrated solutions, and support services. Other
        focused alliance partners include Microsoft, Oracle, IBM, EMC, Intel,
        Dell, Cisco, and SAP.

Regarding the fourth quarter of 2005, the company previously gave earnings per
share guidance, excluding pension expense and any possible impact of the planned
actions, of between 10 to 15 cents per share, which equates to approximately $50
- $75 million of pre-tax income. The company is reiterating this fourth-quarter
2005 pre-tax income guidance. The earnings per share guidance assumed a tax rate
of 32%. As a result of the change in the deferred tax asset valuation allowance,
the company's fourth-quarter 2005 tax rate will change depending upon the
geographic mix of income.

The company's final third-quarter 2005 financial results are discussed more
fully in its Form 10-Q filed today with the Securities and Exchange Commission.

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. Forward-looking statements include, but are not limited to,
any projections of earnings, revenues, contract values or other financial items;
any statements of the company's plans, strategies or objectives for future
operations; statements regarding future economic conditions or performance; and
any statements of belief or expectation. 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, the
company's ability to divest non-strategic areas of the business and to use the
proceeds as planned is dependent upon the market for these businesses and on the
company's ability to sell them for an acceptable price. In addition, the
estimated charges associated with planned cost-reduction actions are subject to
change based upon the degree to which the company generates cash, the degree to
which the company's financial covenants allow such charges, the location and
length of service of the affected employees, the number of employees who leave
the company voluntarily, and other factors. The anticipated cost savings
associated with the planned headcount reductions are subject to the risk that
the company may not implement the reductions as quickly or as fully as currently
planned. The partnership with NEC is subject to completion of definitive
agreements covering the matters outlined in the memorandum of understanding
between the parties. The company's ability to realize the deferred tax assets
will depend on its ability to generate future taxable income. Statements in this
release regarding the expected effects of the company's focused investment and
sales and marketing strategies are based on various assumptions, including
assumptions regarding market segment growth, client demand and the proper skill
set of and training for sales and marketing management and personnel, all of
which are subject to change. Other risks and uncertainties that could affect the
company's future results include general economic and business conditions; the
effects of aggressive competition in the information services and technology
markets on the company's revenues, pricing and margins and on the
competitiveness of its product and services offerings; the level of demand for
the company's products and services and the company's ability to anticipate and
respond to changes in technology and customer preferences; the company's ability
to grow outsourcing and infrastructure services and its ability to effectively
and timely complete the related solutions implementations, client transitions to
the new environment and work force and facilities rationalizations; the
company's ability to effectively address its challenging outsourcing operations
through negotiations or operationally and to fully recover the associated
outsourcing assets; the company's ability to drive profitable growth in
consulting and systems integration; the level of demand for the company's
high-end enterprise servers; the company's ability to effectively rightsize its
cost structure; the performance and capabilities of the company's alliance
partners; the risks of doing business internationally and the potential for
infringement claims to be asserted against the company or its clients.
Additional discussion of these and 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

Presentation of Information in this Press Release

This release presents information that excludes pension expense. This financial
measure is considered non-GAAP. Generally, a non-GAAP financial measure is a
numerical measure of a company's performance, financial position, or cash flows
where amounts are either excluded or included not in accordance with generally
accepted accounting principles. The company believes that this information will
enhance an overall understanding of its financial performance due to the
significant change in pension expense from period to period and the
non-operational nature of pension expense. The presentation of the non-GAAP
information is not meant to be considered in isolation or as a substitute for
results prepared in accordance with accounting principles generally accepted in
the United States ('GAAP'). A reconciliation of this non-GAAP measure to the
most directly comparable GAAP measure accompanies this release.

    RELEASE NO: 1109/8598 (See accompanying reconciliation)
    http://www.unisys.com/about__unisys/news_a_events/11098598.htm

Unisys is a registered trademark of Unisys Corporation. All other brands and
products referenced herein are acknowledged to be trademarks or registered
trademarks of their respective holders.


                          UNISYS CORPORATION
                   RECONCILATION OF GAAP TO NON-GAAP
                FORWARD-LOOKING ESTIMATED PRETAX INCOME
                              (Millions)

                                                  Three
                                                  Months
                                                  Ending
                                                12/31/2005
                                               ------------
Pretax income - on a GAAP basis                  $5 - $30

Add back estimated pension expense                  45
                                               ------------
Pretax income - on a NON-GAAP basis
 (excluding pension expense)                    $50 - $75
                                               ============
NOTE: See section in press release entitled
'Forward-Looking Statements.'

    CONTACT: Unisys
             Media Contacts:
             Guy Esnouf, 215-986-2742
             [e-mail]
                 or
             Jacqueline Lewis, 215-986-5204
             [e-mail]
                 or
             Investor Contact:
             Jim Kerr, 215-986-5795
             [e-mail]