Department of Defense Awards Healthcare Billing Contract to Unisys.

New Solution Will Streamline Third-Party Billing, Replacing Current Military Health System Medical Cost Recovery Systems

BLUE BELL, Pa. -- Unisys Corporation (NYSE:UIS) announced today that the Resources Information Technology Program Office (RITPO) of Department of Defense's (DoD) TRICARE Management Activity awarded the company a contract to configure commercial-off-the-shelf (COTS) software for the Military Health System's (MHS) enterprise-wide Medical Treatment Facility (MTF) billing and accounts receivable operations. The project is known as the Patient Accounting System Charge Master-Based Billing (CMBB) program.

The contract is a time-and-materials contract with a one-year base period and four, one-year option periods, exercisable at the government's discretion. If DoD exercises all four options, the estimated value to Unisys is $42 million. The base year is valued at approximately $10 million. The award occurred in the third quarter.

Under the contract, Unisys and its team will configure a COTS solution to operate with the MTFs that produce bills and reconcile individual beneficiary/patient accounts.

On an MHS enterprise level, this CMBB effort suggests substantive process and policy changes as RITPO, the MHS and each of the military medical departments examine and elect to implement important, system-wide changes that will enable a next generation of revenue cycle management operations and practices.

Utilizing this new set of applications and processes in combination with other recent acquisition efforts already underway within RITPO will enable the MTFs to generate patient accounting data that is consistent with nationally accepted prospective payment and managed care financial management practices. The CMBB effort will interface with a wide variety of MHS legacy systems as well as new solutions including AHLTA - a DoD enterprise-wide, electronic health record system.

The new CMBB solution will allow MTFs to bill for both inpatient and outpatient services and collect more effectively from third parties such as health insurance companies. Presently, MTFs have more limited success billing third-party carriers as the current government-developed solution does not meet a number of the healthcare market expectations for billing details and compliance with various commercial requirements.

Money that these facilities collect may be used to provide or support additional services to the MHS beneficiaries.

"Unisys is proud to provide RITPO and the MHS with a mature, commercial package that has a sound industry footprint and a clear technical vision for future product evolution in healthcare revenue cycle management," said Gary Hobbs, managing partner, defense and advanced programs, Unisys Federal Systems.

"We intend to capitalize on our experience in the MHS on other large scale DoD enterprise-wide COTS solution configurations and implementations to make this CMBB effort a success for DoD," he added.

Unisys in Health Care

Unisys has a long history of working with DoD health care, state Medicaid agencies and veterans' health affairs. Most recently, Unisys introduced a COTS-based claims processing solution for the West Virginia Medicaid program. Other Unisys Medicaid customers include Louisiana and New Jersey.

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 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 estimated value of the contract are predicated on the assumptions that the actual labor hours required to perform the services will be consistent with the currently estimated labor hours and that the government will exercise all of the option years, which is entirely within the government's discretion. Further, because contracts with government agencies are terminable before the end of their terms and are subject to the availability of appropriated funds, the estimated values in this release are not guaranteed. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.

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RELEASE NO.: 1206/8736

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