Re Contract

Re Contract 

   BLUE BELL, Pa.--(BUSINESS WIRE)--Oct. 14, 2002-- 

           Commonwealth and Unisys Announce Three-Year $245
 Million Contract Extension for Pioneering 'Data Powerhouse' Project

           Extension to Deliver Additional Benefits of Cost
                  Avoidance and Service Enhancements

           Pennsylvania Remains Only State to Successfully
           Consolidate and Outsource Agencies' Data Centers

Unisys said today that Gov. Mark Schweiker has announced that the
Commonwealth of Pennsylvania has completed a three-year contract
extension with Unisys Corporation to continue the award-winning
partnership managing the outsourced operation and maintenance of the
State's Data PowerHouse facility.

The contract extension is estimated by the Commonwealth to produce
additional cost avoidance of $31 million. These savings are in
addition to the Commonwealth's estimate of $110 million in cost
avoidance being achieved during the first five years of the Data
PowerHouse contract.

'Years ago, before this project was begun, we had more than twenty
agency data centers using duplicate equipment and duplicate staff to
deliver very similar services,' said Gov. Schweiker. 'Our employees
were doing good work, but with this large number of centers we simply
couldn't achieve economies of scale to ensure the best investment of
our resources. By bringing these separate data centers together into
one state-of-the-art government data center, we're realizing a number
of benefits for our agencies and, ultimately, our citizens.

'Unisys has been a tremendous partner on this initiative, helping us
achieve one of the most productive data centers in the nation -- in
both the public and private sector. Our contract extension not only
makes financial sense, but it will ensure our Data PowerHouse
continues to set the blue-ribbon standard for data center operations
around the world.'

The original seven-year contract with Unisys, valued at $511 million,
was finalized in August 1999 and included provisions for a three-year
extension. This extension, running through 2009, is valued at $245
million.

The Data PowerHouse project is managed by a consortium of 10 companies
led by Pennsylvania-based Unisys.

'The Ridge-Schweiker Administration has been visionary in its
understanding of how the strategic application of technology can
improve state government and benefit citizens,' said Unisys Chairman
and CEO Lawrence A. Weinbach. 'The Data PowerHouse project is one
example of that vision in action.

'Working together, the Commonwealth and Unisys have been able to win
national and international awards for the performance of this
facility. But what should interest citizens most is our success at
streamlining government and safeguarding the many public services that
rely on computers in the Data PowerHouse for their smooth operation 24
hours-a-day.'

The Data PowerHouse houses mainframe and mid-range computers, and
other technology, used by state agencies to process data for driver's
license renewals, property tax and rent rebates for senior citizens,
processing of criminal files, unemployment compensation claims, and
other vital state government services.

In addition to continuing the outsourcing relationship, the extension
includes the delivery of new technology and services to provide
enhanced disaster recovery capabilities for critical public services
supported by the facility.

Pennsylvania remains the only state government in the nation to have
successfully consolidated and outsourced its data centers.

When first established, the Data PowerHouse consolidated 17 data
centers, formerly run by 14 state agencies, and outsourced the
operation and maintenance of the new Data PowerHouse. All but one of
these consolidated data centers were within eight miles of downtown
Harrisburg. Since October 2000, when all 17 data centers were
successfully consolidated, another 4 agency data centers have been
moved into the facility.

An important new service provided by the Data PowerHouse is the
availability of rapid disaster recovery capabilities, which were not
widely used by state agencies before 2000. In the case of an event
that might cripple the Data PowerHouse facility, this service provides
state agencies, within hours, data processing capabilities from a
back-up site located a safe distance away from the main facility.

This extra safeguard ensures that critical state data processing
services will be provided if disaster should strike, which is
especially important following the events of Sept. 11.

The Data PowerHouse is staffed around-the-clock, providing optimal use
of the Commonwealth's computer investments. The new facility uses
robotics and includes the latest security and back-up systems to
safeguard data files housed there.

Additionally, the Data PowerHouse provides agencies with the fastest
possible access to the latest computing technology. This ensures
agencies are using the best equipment for delivering reliable and
rapid response times for their customers.

The Data PowerHouse has been recognized with two prominent awards. In
2002, the project was named 'Most Strategic' as part of the
Outsourcing Journal's Editor's Choice Awards. Two years earlier, the
Data PowerHouse was a finalist for the World Outsourcing Award,
finishing second only to the federal government of Australia.

More information on the Schweiker Administration's Data PowerHouse
initiative is available through the PA PowerPort at www.state.pa.us,
PA Keyword: 'Data PowerHouse.'

About Unisys

Unisys is a worldwide information technology services and solutions
company. Our people combine expertise in systems integration,
outsourcing, infrastructure, server technology and consulting with
precision thinking and relentless execution to help clients, in more
than 100 countries, quickly and efficiently achieve competitive
advantage. 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 various risks and uncertainties that
could cause actual results to differ materially from expectations. In
particular, because this contract is subject to availability of
appropriated funds and is terminable by the commonwealth before the
end of its term, the estimated value of the contract is not
guaranteed. Additional discussion of factors that could affect Unisys
future results is contained in its periodic filings with the
Securities and Exchange Commission.

RELEASE NO.: 1002/8192
http://www.unisys.com/about__unisys/news_a_events/10148192.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.

   Short Name: Unisys Corp
   Category Code: CNT
   Sequence Number: 00000940
   Time of Receipt (offset from UTC): 20021011T200855+0100