South Carolina Chooses Covansys To Implement Unemployment Insurance Tax System.

Business/Technology Editors

FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Dec. 11, 2001

Multi-Million Dollar Contract To Create System Designed to Improve

Processes and Cut Bureaucratic Red Tape

Covansys (Nasdaq: CVNS), a global technology services company, today announced that the state of South Carolina has chosen Covansys to develop and implement an unemployment insurance tax system called SCATS, the South Carolina Automated Tax System. This is the first major public sector win for Covansys in the state of South Carolina.

The project, awarded by the state of South Carolina's Employment Security Commission (SCESC), is scheduled to be fully implemented by early 2003. The terms of the agreement include requirement definitions, design, development, testing, rollout and post implementation support.

"Covansys is delighted to have the opportunity to assist the SCESC with the design and implementation of this advanced technology tool, said Arvind Malhotra, Covansys' public sector practice executive. "This is the first step in what we hope will be a long relationship with the state of South Carolina and we compliment them for their foresight in using technology innovations to better serve their citizens. More and more states are exploring e-Government solutions as a way to save taxpayer money and improve the efficiency and effectiveness of state government."

Once implemented, SCATS will provide the SCESC with improved functionality that will allow state workers to automate routine tasks; reduce paper processes; and improve efficiency, timeliness and data capture.

SCATS will also include a new Web-based interface system that will provide access to information and increase workplace efficiency by allowing employers to register, report wages and make payment transactions on-line.

"SCATS is an example of South Carolina's dedication to e-government and the improvement of state related business processes," said Deputy Executive Director Allen Larson. "We certainly look forward to working with Covansys in developing and implementing a state-of-the-art tax system."

For the last 16 years, Covansys has provided public sector solutions to more than 25 states in the areas of health and human services, transportation, public retirement systems, labor and tax and revenue systems. Covansys derives approximately 30 percent of its current annual revenues from state and local government customers.

About Covansys Corporation 

Covansys Corporation (Nasdaq: CVNS) is a global technology services company specializing in Web-to-Enterprise Integration (WEI(SM)), industry-specific solutions and strategic outsourcing. Since its founding in 1985, Covansys has successfully delivered fast, focused, high-quality yet cost-effective business and technical solutions, building a professional heritage that bridges Old World legacy systems and the New Economy's leading-edge e-business technologies. With one of the largest offshore capabilities of any U.S.-based technology services provider, Covansys is one of the few companies in the world to achieve the SEI's CMM(R) Level 5 quality rating at its offshore development centers in India. Headquartered in Farmington Hills, Michigan, Covansys was named one of the top 500 solution providers in North America in 2001 by VARBusiness magazine. Visit our website at: www.covansys.com.