Unisys Expects Growth in 2005

Unisys Corporation
                  

        Building on Successful Transformation to Services-Led,
            Technology- Enabled Solutions Provider, Company
            Positioned to Capitalize on Growth Initiatives

Unisys Corporation's (NYSE:UIS) successful transformation into a services-led,
technology-enabled solutions provider has positioned it for growth in 2005, the
company told the investment community today. Under the leadership of incoming
CEO Joseph W. McGrath, Unisys focus will be to drive profitable growth by
focusing on increased market differentiation and by reducing its cost structure
through continuous improvement, said Unisys Chairman and CEO Lawrence A.
Weinbach.

The company announced on October 22, 2004 that McGrath, currently president and
chief operating officer, will become CEO effective January 1, 2005. Weinbach
will continue as executive chairman through January 2006.

'This is an important time in Unisys evolution,' Weinbach said. 'Many forces are
reshaping the information technology marketplace, creating significant
opportunities in growing markets where Unisys has deep domain expertise. Joe and
his leadership team have an aggressive plan to capitalize on future growth
potential.'

McGrath, speaking at the company's annual financial analysts conference in New
York, and to a wider audience on the Internet, said he has three priorities for
driving profitable growth in the upcoming years:


1. Capitalize on Unisys differentiators in the marketplace,
   particularly the Unisys 3D Visible Enterprise (3D-VE) methodology
   and solutions.

2. Maximize effectiveness in winning business by leveraging the
   company's global resources and going to market as 'one Unisys.'

3. Operate with a lean cost structure, competitive with the industry's
   'best in class' benchmarks.


'Unisys has differentiators that clearly set us apart in the marketplace,
including the leading-edge 3D-VE offering combined with our end-to-end portfolio
of services and solutions, industry depth and global capabilities,' McGrath
said. 'The most important is 3D-VE. We were first to market with this
methodology that enables a client to have full enterprise visibility before
making any information technology investments. Imagine knowing the outcome of
any changes you want to make in your infrastructure before you make them. That's
what 3D-VE provides. And that is a powerful and relevant tool for any CEO in the
world.'

As part of today's presentation, Chief Financial Officer Janet B. Haugen also
reviewed the company's 2004 financial performance. The company expects its
earnings to trend toward the low end of its full year earnings target of 68-72
cents, excluding the impact of pension accounting, on flat to low single digit
revenue growth. She noted that the 2004 fourth quarter was seasonally back-end
loaded and that the company is executing action plans on a few challenging
outsourcing engagements.

Looking to 2005, Unisys anticipates continued modest global economic growth, led
by the United States, and low to mid-single digit growth in overall information
technology spending. Based on these assumptions, the company anticipates
approximately a 5-10 percent increase in earnings per share in 2005 over the
68-72 cents earnings guidance for 2004; these estimates exclude the impact of
pension accounting and potential expensing of stock options. The company expects
mid-single digit revenue growth for 2005, driven by growth in services and a
slight decline in technology.

The impact of pension accounting in 2004 is expected to be approximately $94
million of pre-tax pension expense, or about 19 cents per diluted share. For
2005, the impact of pension accounting cannot be reliably estimated until
December 31, 2004 when the actual amount of pension plan assets is known and the
discount rate can be determined. Based on pension plan asset values and the
long-term interest rate environment at November 30, 2004, preliminary estimates
of the impact of pension accounting in 2005 would be a pre-tax expense of $165
million, or about 33 cents per diluted share. This is primarily driven by an
increase in U.S. pension expense. After establishing assumptions at year-end
2004, as required by pension accounting rules, the company will announce its
estimate of the impact of pension accounting for 2005 when it releases its
year-end earnings in January.

In addition, the company expects significant improvement in its 2005 operational
cash flow, with free cash flow (operational cash flow reduced by capital
expenditures) estimated to exceed $100 million.

'Unisys has the right mix of assets today to drive growth,' McGrath said. 'We
have the people, the portfolio and the industry expertise to execute
aggressively in the changing marketplace. We also have an extraordinary global
client base, which underscores our ability to effectively compete and win. I'm
confident we are well positioned to expand this client roster and build on our
success in 2005.'

About Unisys

Unisys is a worldwide information technology services and solutions company. Our
people combine expertise in consulting, systems integration, outsourcing,
infrastructure and server technology 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. Forward-looking statements include, but are not limited to,
any projections of earnings, revenues 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. Statements in this
release regarding the company's financial outlook are based in part on the
company's assumptions for the economy. 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 and to fully
recover the associated outsourcing assets; the company's ability to drive
profitable growth in consulting and systems integration; the degree of market
acceptance of the company's high-end enterprise servers; the company's ability
to maintain tight cost controls; 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. A reconciliation of this non-GAAP measure to the most
directly comparable GAAP measures accompanies this release.

RELEASE NO.: 1207/8479

http://www.unisys.com/about__unisys/news_a_events/12078479.htm

Unisys is a registered trademark of Unisys Corporation.



                          UNISYS CORPORATION
                  RECONCILIATION OF GAAP TO NON-GAAP
                  FORWARD-LOOKING ESTIMATED DILUTED
                          EARNINGS PER SHARE

                                              Year           Year
                                             Ending         Ending
                                           12/31/04      12/31/05(a)
                                         -------------- --------------


Diluted earnings per share - on a GAAP
 basis                                       .49 - .53      .38 - .44

Add back estimated pension expense, net
 of tax                                            .19            .33
                                         -------------- --------------

Diluted earnings per share - on a NON-
 GAAP basis (excluding pension expense)      .68 - .72      .71 - .77
                                         ============== ==============


(a) The potential impact of stock option expense accounting on 2005
    earnings cannot be determined until a pending Financial Accounting
    Standards Board rule is finalized.

NOTE: See section in press release entitled 'Forward-Looking
Statements.'



    CONTACT: Unisys Corporation
             Media:
             Elizabeth Douglass, 215-986-6583 or 302-897-5351
             E-mail: [e-mail]
                 or
             Investors:
             Jim Kerr, 215-986-5795
             E-mail: [e-mail]