Affiliated Computer Services Announces Landmark Outsourcing Agreement With Keystone International; ACS and SAP America Will Transition Company to Client/Server.

DALLAS--(BUSINESS WIRE)--June 29, 1995--Affiliated Computer Services Inc. (NASDAQ: ACSA), a leader in information technology services, announced today a landmark multi-million dollar agreement with Keystone International, Inc., to support the company's transition from legacy systems to SAP's R/3 client/server system. The initial seven-year agreement could last 10 years and is valued at $12 million to $18 million if Keystone exercises all its options.

Under the agreement, ACS initially will outsource Keystone's legacy systems in Houston as well as its local-area networks (LAN). The outsourcing will allow Keystone to focus on its worldwide business re-engineering effort as it converts to SAP's R/3 products. ACS will enhance Keystone's LAN monitoring capabilities, help implement system-wide standards and provide asset tracking and control.

Just last week, ACS announced a national outsourcing alliance with SAP America that calls for ACS to work with selected SAP America's customers in their migration to client/server. ACS will outsource the customers' existing legacy systems and client/server environment and provide help desk and other support services through its Technical Assistance Center. As part of its service offering and one of the options available to Keystone, ACS will fund the cost to implement R/3 by spreading the R/3 license, implementation and fees over the term of the outsourcing agreement.

SAP provides flexible, integrated client/server and mainframe-based business applications software that is compatible with most popular hardware, software and database platforms. More than 4,300 companies in 41 countries use SAP software to manage complex financial, manufacturing, sales, and human resources requirements.

Rory MacDowell, Keystone International's chief information officer, said that Keystone's alliance with ACS should allow Keystone to seamlessly transition its systems to a client/server environment. "We want to leverage the benefits of partnering with a high technology company and Keystone's agreement with ACS will enable us to control our migration to R/3, and reduce both costs and risk," MacDowell said.

"We are pleased that Keystone International chose ACS to assist in its transition to client/server," said Henry Hortenstine, executive vice president and head of ACS' Outsourcing Technology Group. "ACS is committed to providing our clients with a managed transformation to client/server," Hortenstine said.

Hortenstine added that ACS recently created an integrated outsourcing group to assist its clients in their migration to client/server. "ACS' alliance with SAP America gives us a whole new set of tools with which to deliver cost-effective client/server solutions to our customers," Hortenstine said.

Keystone International Inc. is a leader in the manufacturing and marketing of flow control equipment in virtually every industrial and geographics market worldwide. With 28 manufacturing plants located in 13 countries and 4,000 employees around the world, Keystone recorded revenues of $535 million in 1994 and is listed on the New York Stock Exchange under the symbol KII.

With 2,800 employees nationwide, ACS provides information technology services including outsourcing, professional services, electronic funds transfer (EFT), and information and image management. Headquartered in Dallas, Texas, the Class A Common Stock of ACS is traded on the NASDAQ National Market System under the symbol "ACSA."

CONTACT: Keystone International

Rory MacDowell, 713/937-5339

or

Affiliated Computer Services 

Peter J. McLaughlin, 214/841-6285

or

Public Relations 

Maria Squicciarini, 214/480-9458