Unisys Awards AT&T $85 Million Contract.

-Information services leader to reduce

telecommunications costs by up to $30 million

BASKING RIDGE, N.J.--(BUSINESS WIRE)--March 17, 1999--AT&T announced today that it has been awarded a three-year, $85-million contract by Unisys Corporation to provide an integrated portfolio of global data and voice services to streamline integration and management of the Unisys company-wide network.

The agreement provides voice, data and video services for Unisys in the United States, Western Europe and South Africa, as well as services supporting connections to Latin/South America and Australia. Unisys expects to save $25-$30 million in telecommunications costs over the three-year contract period.

AT&T will provide services to Unisys through AT&T OneNet(R) Service, an integrated offer portfolio that simplifies managing complex telecommunications services. Network services provided under the agreement include international voice and data services via AT&T Concert Virtual Network Service and Concert Frame Relay Service, joint services of AT&T and British Telecom (BT), U.S. domestic ATM and frame relay service, dedicated digital private-line services, and inbound and outbound voice services.

According to Bard Haerland, Unisys Vice President, Worldwide Telecommunications, "Unisys is now strategically positioned for integration of voice, data and video services and for implementation of a worldwide meshed network from one global supplier. We expect this streamlined network not only to help us reduce telecommunications costs significantly, but also to yield substantial benefits in operational efficiency and productivity."

The contract is one of the first negotiated by AT&T under AT&T OneNet(R) Service, a flexible "master agreement" format recently introduced to provide large corporate customers a single instrument that affords them the option of adding services without renegotiating general terms and conditions. The master agreement contract structure gives customers the ability to bundle a variety of AT&T services into a single, unified document with specific terms in the service attachments.

"We are very pleased that this agreement establishes a mutually beneficial, global business relationship between AT&T and Unisys. The selection of AT&T by Unisys-a company with proven technical expertise-is a strong validation of our worldwide services capabilities," said Rick Miller, President, AT&T Global Services. "We are also proud to note that this agreement makes Unisys our first customer for voice/data/video services provided by Concert, not only because we can provide Unisys a new level of service, but also because it continues an ongoing customer relationship between Unisys and BT."

Unisys (NYSE:UIS) is more than 33,000 employees helping customers in 100 countries apply information technology to solve their business problems. Unisys solutions are based on a broad portfolio of global information services including systems integration, outsourcing, "repeatable" application solutions, consulting, network integration, remote network management, and multivendor maintenance and support, Page 3 coupled with enterprise-class servers and associated middleware, software and storage. Repeatable solutions are focused on key vertical markets including financial services, transportation, telecommunications, government, publishing and other commercial markets. Headquartered in Blue Bell, Pennsylvania, in the Greater Philadelphia area, Unisys had 1998 annual revenue of $7.2 billion. Access the Unisys home page on the World Wide Web - http://www.unisys.com - for further information.

AT&T (www.att.com) is the world's premier provider of voice and data communications, with more than 80 million customers, including businesses, government and consumers. AT&T runs the world's largest, most powerful long-distance network and the largest wireless network in North America. The company is a leading supplier of data and Internet services for businesses and the nation's largest direct Internet service provider to consumers. AT&T also provides local telephone service to a growing number of businesses.