Dell, Unisys Plan to Expand Strategic Global Alliance; Agreements would cover expanded services, OEM arrangements.

Business Editors/Hi-Tech Writers

BLUE BELL, Pa. & ROUND ROCK, Texas--(BUSINESS WIRE)--Dec. 7, 2000

Unisys Corporation (NYSE:UIS) and Dell Computer Corporation (NASDAQ:DELL) today said they intend to expand their existing services agreement into a broader, global alliance involving servers, PC products and services.

In the main elements of the agreement, Unisys will sell Dell's mid-range PowerEdge servers branded as Unisys systems and become a Preferred Services Provider for technology and support services to Dell's customers worldwide.

Dell will supply desktop, notebook and entry-level server products to Unisys service engagement customers worldwide and, as announced earlier this week, sell Unisys Cellular MultiProcessing (CMP) enterprise-class servers to Dell customers worldwide (see related story www.unisys.com/news/releases/2000/dec/12057027.asp).

The two companies have signed a letter of intent covering this series of actions. Dell and Unisys expect to sign definitive agreements on each element of the strategic partnership early in 2001.

"We are very happy to be able to grow our successful alliance with Dell into a strategic global partnership covering both technology and services," said Unisys Chairman and CEO Lawrence A. Weinbach. "We have had a very good relationship providing service and support for Dell products. In expanding our services relationship, we open the way for Dell customers to benefit from a broader range of Unisys support and managed network services.

"With these agreements, we will gain a strategic new channel for Unisys CMP-based enterprise server products. The market already has embraced this groundbreaking technology, and this agreement would help us to extend our reach further. At the same time, we would add Dell's line of mid-range servers to our Unisys-branded product line, giving our customers a terrific set of options to address their server needs."

Dell Vice-Chairman Kevin Rollins said, "This expanded relationship will benefit our customers and both our companies by leveraging our complementary strengths. We believe Dell PowerEdge servers will provide a terrific new set of options for Unisys enterprise and government clients.

"For Dell, the CMP-based products will instantly give us the state-of-the-art server at the top of the market. And this alliance widens our entree to Unisys global service and deployment expertise, giving us a great deal more leverage in the marketplace. This is a great formula for a valuable partnership."

Under the agreements:

-- Dell would acquire and sell Unisys CMP architecture-based APA 7000 16- and
32-processor enterprise servers under the Dell brand. Dell would dispatch
Unisys service consultants to provide installation support and technical and
managed services for the CMP servers. CMP is the only server architecture to
use the 32 processors and 64 Gbytes of memory supported by the Microsoft
Windows 2000 Datacenter Server operating system. CMP-based servers, which
Unisys began shipping to customers just this year, have won wide praise - this
month, Gartner Group Research Director John Enck said, "The continuing adoption
of Unisys Cellular Multiple Processor (CMP) technology by key Intel server
vendors positions CMP as the defacto standard for high-end Intel servers."
Unisys provides this price/performance-leading high-end technology through its
direct sales channels as the Unisys e-@ction ES7000 Enterprise Server, as well
as through OEM agreements with Compaq, Hewlett Packard and ICL.

-- Unisys would acquire and sell Dell's 2-, 4-, and 8-processor PowerEdge
servers under the Unisys brand. As the number two provider of Intel-based
servers, Dell's systems are already the standard with many large customers,
government institutions and small- to medium-sized businesses worldwide. The
agreement with Unisys would extend that reach into Unisys customer base. Again,
Unisys would provide support and services to customers buying these popular
servers.

-- Unisys would be a Preferred Service Provider for warranty and support
services, network services and systems integration services for select Dell
products worldwide. Dell and Unisys would also explore additional opportunities
to expand its relationship for broader technology consulting services.

-- Dell would act as an agent for Unisys to provide Dell's market-leading line
of OptiPlex desktop and Latitude notebook personal computers and
single-processor PowerEdge servers in selected Unisys services engagements,
including managed network services, outsourcing and technology standardization
rollouts. Dell would fulfill orders directly to the customer, and Unisys would
provide support services.

About Unisys

Unisys is an e-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 e-business based on its expertise in 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 forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

The factors that could affect the Unisys future financial results are discussed more fully in the company's latest Form 10-Q as filed with the Securities and Exchange Commission.

RELEASE NO.: 1200/7030 http://www.unisys.com/news/releases/2000/dec/12077030.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.