4th Quarter & Final Results

Unisys Corp
24 January 2000


Media Contact:      Jay Grossman, Unisys, [phone]
                          Internet: [e-mail]

Investor Contact:   Jim Kerr, Unisys, [phone]
                          Internet: [e-mail]

Unisys 1999 Earnings Per Share Increase 57% for the Full Year and 15% for the
Fourth Quarter

BLUE BELL, PA, JANUARY 18, 2000 -- Unisys Corporation (NYSE: UIS) today reported
fourth-quarter 1999 net income of $144.4 million, or 46 cents per diluted common
share, compared to net income of $135.7 million, or 40 cents per diluted share,
in the year-ago period. As expected, revenue in the quarter declined 4.8% to
$1.96 billion from $2.06 billion in the year-ago period. Without the negative
impact of foreign currency translation, revenue in the quarter increased
approximately 1% from a year ago.

For the full year of 1999, Unisys reported net income of $510.7 million compared
to $376.4 million in 1998. After payment of preferred dividends, the company's
diluted earnings per share in 1999 rose 57% to $1.59 compared to 1998 earnings
per share of $1.01. In the third quarter of 1999, the company recorded a one
time tax benefit of $22.0 million, or 7 cents per share, and an extraordinary
charge of $12.1 million, or 4 cents per share, for the repurchase of debt.
Excluding these items, earnings per share in 1999 rose 54% to $1.56 per share. 
Revenue in 1999 grew 4.2% to $7.54 billion from $7.24 billion in 1998. On a
constant currency basis, revenue grew approximately 7% in 1999.

Comments from Chairman and CEO Larry Weinbach

'We delivered strong profits in the fourth quarter despite an expected difficult
revenue environment,' said Unisys Chairman and Chief Executive Officer Lawrence
A. Weinbach. 'As we forecasted, we were impacted at the top line by Y2K customer
spending lockdowns and by a more than five percentage-point negative impact of
foreign currency translation in the quarter. Despite this, we were able to meet
our earnings target for the quarter and achieve a more than 55 percent increase
in earnings per share for the full year.

'Overall, 1999 was a year of accomplishment for Unisys. We retired all of our
preferred stock, eliminating more than $106 million of annual dividends. We
reduced our long-term debt by more than $1.3 billion since September of 1997,
cutting more than $125 million of annual interest expense in the process and
exceeding our 1997 forecast of a $1 billion debt reduction by the year 2000. We
intend to continue our debt reduction efforts in 2000 and remain focused on
achieving investment-grade status.

'Most important, in 1999 we laid the foundation for accelerated profitable
revenue growth in 2000 and beyond. The realignment of our business announced in
the fourth quarter, which presents an integrated view of Unisys capabilities to
our clients worldwide, is proceeding on schedule. Clients as well as employees
have responded very positively to our new integrated approach to the market and
our portfolio of offerings.

'In recent months we have announced a range of innovative services and
solutions in our strategic growth areas of electronic business, outsourcing,
networking, and enterprise-class servers,' Weinbach said. 'Our services backlog
grew more than 35 percent in 1999 as we continue to build our backlog of
multi-year contracts. In our technology business, at the end of the first
quarter we expect to begin customer shipments of our new Unisys e-@ction ES7000
enterprise-class servers, based on our innovative Cellular Multiprocessing
architecture. Our employees, including the 7,000-plus people who joined us in
1999, are highly motivated and enthusiastic about our opportunities in the
marketplace. All of these should put us in a strong position to accelerate our
profitable growth as we progress through 2000.

Overall Company Highlights

Unisys reported that U.S. revenue was basically flat in the fourth quarter
compared to the year-ago period. Revenue in international markets declined but
was up slightly on a constant currency basis. The strongest areas of
international revenue growth in constant currency were in Latin America, Asia,
and Europe.

Total worldwide orders were essentially flat in the quarter versus a year
ago excluding a more than $500 million outsourcing contract with the
Commonwealth of Pennsylvania in 1998. On a geographic basis, U.S. orders
declined and international orders showed strong growth led by substantial gains
in Europe and strong growth in Asia/Pacific.
                           
The company's gross margin in the quarter increased slightly over a year ago to
34.8% driven by higher gross margins in the services business.  Operating profit
in the services business accounted for 54% of the company's total operating
profit in the quarter compared with 40% a year ago. Services represented 71% of
the company's revenue in the fourth quarter compared with 67% in the year-ago
quarter.

Unisys said its selling, general, and administrative (SG&A) expenses in the
fourth quarter declined slightly compared to a year ago and increased slightly
as a percent of revenue due to lower-than-planned revenue levels. For the full
year, the company's SG&A expenses as a percentage of revenue declined slightly
from 1998 levels to 18.4% of revenue.


Business Segment Highlights

Customer revenue in the company's services business was flat in the fourth
quarter versus the year-ago-period. Double-digit growth in outsourcing services
was offset by continued declines in proprietary maintenance and by a slight
decline in networking services revenue. Services orders in the quarter,
excluding the large outsourcing order of a year ago, increased slightly. The
company's estimated services backlog at the end of 1999 increased approximately
35% to $4.6 billion. Gross profit margins in the services business increased 2.7
percentage points from the year-ago quarter to 26.9%. Services operating margins
in the quarter increased 1.8 percentage points from a year ago to 9.4%.

In the technology business, as expected, customer revenue declined 14.9% in the
fourth quarter, reflecting reduced technology spending as customers prepared for
the year 2000 transition. Technology orders were essentially flat compared to a
year ago. Gross margins in the technology business declined 5.1 percentage
points to 43.8% and operating margins declined 6.4 percentage points to 15.8%,
reflecting a lower mix of ClearPath enterprise servers in the quarter compared
to a year ago.

Cash Flow and Balance Sheet Highlights

Unisys generated operating cash flow of $198 million in the fourth quarter
compared to $210 million in the year-ago period. The company said that while it
showed continued improvement in inventory reduction in the quarter, its accounts
receivables performance was negatively impacted by higher equipment shipments
late in the quarter compared to the year-ago period.

Unisys said it is focused on making significant improvement in its receivables
performance in 2000. The company closed the year with $464 million of cash on
hand and $973 million of longterm debt after retiring an additional $168 million
of debt during the year. At December 31, 1999, the company's debt-to-capital
ratio was 34% compared to 43% at year-end 1998 and 58% at year-end 1997.

Business Outlook

'As we enter the new year, I am very optimistic about our opportunities in the
marketplace,' Weinbach said. 'With the work we have done in transforming our
leadership team, our business structure, and our go-to-market model, I believe
we are well positioned to capitalize on accelerated customer spending on
electronic business, networking, outsourcing, and enterprise-class servers that
can handle the rigors of transaction processing in an electronic business
environment. Our focus now is on executing our new integrated go-to-market
approach and on executing our e-business strategy. As organizations focus on new
IT projects after the Y2K transition, our plans call for 8-10% revenue growth in
2000, with revenue relatively flat in the first quarter and building to
double-digit growth in the second half of the year. We expect services revenue
in the first quarter to increase to mid single-digit growth and technology
revenue to be below the first quarter of 1999 when we had a very strong
technology quarter. We remain focused on our goal to grow earnings per share at
twice the rate of revenue growth in 2000.

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 'repeatable' 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 forwardlooking 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 1O-Q as filed with
the Securities and Exchange Commission.

URL address: http://www.unisys.com/news/releases/2000/Jan/01186855.asp

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.


                           UNISYS CORPORATION
                    CONSOLIDATED STATEMENT OF INCOME
                   (Millions, except per share data)

                                      Three Months            Twelve Months
                                    Ended December 31        Ended December
                                   -----------------        ---------------
                                   1999         1998        1999       1998
                                   ----         ----        ----       ----
Revenue                          $1,959.9     $2,058.3    $7,544.6    $7,243.9
                                 --------     --------    --------    --------
Costs and expenses
 Cost of revenue                  1,278.1      1,346.0     4,859.9     4,775.9
 Selling, general and
  administrative                    349.7        362.1     1,384.6     1,360.7
 Research and development            88.0         83.3       339.4       308.3
                                 --------     --------    --------    --------
                                  1,715.8      1,791.4     6,583.9     6,444.9
                                 --------     --------    --------    --------

Operating income                    244.1        266.9       960.7       799.0
Interest expense                     24.8         39.9       127.8       171.7
Other income
 (expense), net                       2.7        (13.4)      (62.6)      (33.1)
                                 --------     --------    --------    --------

Income before income taxes          222.0        213.6       770.3       594.2
Estimated income taxes               77.6         77.9       247.5       217.8
                                 --------     --------    --------    --------
Income before
  extraordinary item                144.4        135.7       522.8       376.4
Extraordinary item                    -                      (12.1)
                                 --------     --------    --------    --------
Net income                          144.4        135.7       510.7       376.4
Dividends on preferred
 shares                               -           26.6        36.7       106.5
                                 --------     --------    --------    --------
Earnings on common share           $144.4       $109.1      $474.0      $269.9
                                 ========     ========    ========    ========
Earnings per common share
Basic
 Before extraordinary item         $  .47       $  .43     $  1.69      $ 1.07
 Extraordinary item                                           (.04)
                                 --------      -------    --------     -------
   Total                           $  .47       $  .43     $  1.65      $ 1.07
                                 ========      =======    ========     =======
Diluted
 Before extraordinary item         $  .46       $  .40     $  1.63      $ 1.01
 Extraordinary item                                           (.04)
                                 --------      -------     -------     -------
   Total                           $  .46       $  .40     $  1.59      $ 1.01
                                 ========      =======     =======     =======

Shares used in the per share
 computations (thousands):
 Basic                            310,127      255,971     287,290     253,335
                                 ========      =======     =======     =======
 Diluted                          317,080      272,851     298,820     269,843
                                 ========      =======     =======     =======




                    UNISYS CORPORATION
                   SUPPLEMENTAL SUMMARY
                       (Millions)

                                             Elimi-
                                    Total    nations    Services    Technology
                                    -----    -------    --------    ----------
Three Months Ended
December 31, 1999
------------------
Customer revenue                 $1,959.9               $1,385.7       $574.2
Intersegment                                 ($161.9)       16.6        145.3
                                 --------   --------    --------      -------
Total revenue                    $1,959.9    ($161.9)   $1,402.3       $719.5
Gross profit percent                 34.8%                  26.9%        43.8%
                                 ========               ========      =======
Operating income
 percent                             12.5%                   9.4%        15.8%

Three Months Ended
December 31, 1998
------------------
Customer revenue                 $2,058.3               $1,383.3       $675.0
Intersegment                                 ($144.4)       26.4        118.0
                                 --------    -------    --------      -------
Total revenue                    $2,058.3    ($144.4)   $1,409.7       $793.0
                                 ========    =======    ========      =======
Gross profit percent                 34.6%                  24.2%        48.9%

Operating income
 percent                             13.0%                   7.6%        22.2%
                                 ========               ========      =======

Year Ended
December 31, 1999
-----------------
Customer revenue                 $7,544.6               $5,287.0     $2,257.6
Intersegment                                 ($577.5)       65.6        511.9
                                 --------    -------    --------     --------
Total revenue                    $7,544.6    ($577.5)   $5,352.6     $2,769.5
                                 ========    =======    ========     ========
Gross profit percent                 35.6%                  25.6%        48.1%
                                 ========               ========     ========
Operating income
 percent                             12.7%                   7.9%        20.3%
                                 ========               ========     ========

Year Ended
December 31, 1998
-----------------
Customer revenue                 $7,243.9               $4,944.8     $2,299.1
Intersegment                                 ($511.2)       73.7        437.5
                                 --------    -------    --------     --------
Total revenue                    $7,243.9    ($511.2)   $5,018.5     $2,736.6
                                 ========    =======    ========     ========
Gross profit percent                 34.1%                  24.4%        46.9%
                                 ========               ========     ========

Operating income
  percent                            11.0%                  6.6%         18.7%
                                 ========               =======      ========