City of Minneapolis Outsources Management of Information Technology Infrastructure to Unisys; City Estimates it Will Save $20 Million.

Business Editors/Hi-Tech Writers

BLUE BELL, Pa. & MINNEAPOLIS--(BUSINESS WIRE)--Jan. 7, 2003

Unisys Corporation (NYSE:UIS) announced that it has been awarded a seven-year contract with the city of Minneapolis to provide a full range of outsourcing services to manage the city's complete IT infrastructure, from the data center to desktops and mobile devices.

The city of Minneapolis expects to save an estimated $20 million in ongoing technology infrastructure and support. Unisys was awarded the contract following a competitive process that included IBM Global Services.

Under the contract, which has a value to Unisys of approximately $56 million, Unisys will support multiple city agencies, including the Mayor's office, City Council, Fire and Police Departments, and the office of Public Works. Unisys will provide network, systems, database and data center administration, monitoring and management, along with disaster recovery services.

Also, as part of the contract, Unisys will take ownership of the city's existing servers, including Unisys ES7000 servers, and PCs and move the servers to one of Unisys state-of-the-art outsourcing facilities. From its world-class data center in Eagan, MN, Unisys will manage these servers -- providing an added level of security and reliability to the city's mission-critical operations.

"Our decision to outsource the maintenance of our technology infrastructure is just one of many ways Minneapolis is working to deliver more streamlined, efficient and cost-effective city services to our citizens," said City Council President Paul Ostrow. "It enables us to contain costs, use our tax dollars more efficiently, increase service levels to city employees and constituents, leverage economies of scale and gain access to additional skills and resources. It also frees the city's internal IT staff to concentrate on strategic initiatives that improve the services we provide. Unisys stood out as the partner best able to provide the city, its employees and our citizens with a secure, reliable, state-of-the-art solution that furthers our vision of making Minneapolis a world-class virtual city, serving the public 24 hours a day, seven days a week, 365 days a year."

Unisys will manage and support approximately 2,700 desktops in addition to more than 100 servers, providing services that include service desk, software support and remedial maintenance for desktop and laptop systems, personal digital assistants (PDAs) and peripherals.

A dedicated Unisys program management office, providing an on-site single point of contact and responsibility for client service requirements, will coordinate delivery of the services. This single-point-of-contact approach streamlines all service requests and is a key "best practice" that Unisys brings to the engagement.

The terms of the contract provide significantly enhanced levels of support and disaster recovery capabilities than the city has previously enjoyed. Additionally, the contract will provide the city and its employees with new hardware, including laptops, desktops, PDAs, servers and storage equipment, under a technology refresh program administered by Unisys.

"Unisys shares the city of Minneapolis' commitment to provide its citizens and employees with high-quality, easily accessible services," said Everett Dyer, vice president and general manager, North America, Unisys Global Infrastructure Services. "By delivering value-added IT outsourcing services based on innovative best practices, and capitalizing on our proven expertise in delivering solutions that enable government to deliver more constituent services more effectively, we can help the City of Minneapolis become a model for other cities in leveraging IT infrastructure for operational efficiency and public service."

Under the terms of the agreement, Unisys will be offering employment opportunities to IT personnel currently employed by the city who are impacted by the outsourcing initiative.

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 media 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, statements regarding the anticipated value of engagements with governmental agencies are subject to the availability of appropriated funds and are terminable by such agencies before the end of their terms.

In addition, statements in this release regarding anticipated value of the contract are based upon assumptions regarding future volumes of business, which are subject to change, and, because the agreement is terminable before the end of its term, the estimated value of the engagement is not guaranteed.

Additional discussion of factors that could affect Unisys future results is contained in its most recent Form 10-Q filed with the Securities and Exchange Commission.

RELEASE NO.: 0103/8224

http://www.unisys.com/about__unisys/news_a_events/01078224.htm

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