Unisys Plans to Sell Shares in Nihon Unisys Limited; Proceeds from Sale to Fund Cost Reduction Plan.

BLUE BELL, Pa. -- Unisys Corporation (NYSE:UIS) today announced that it plans to sell the shares it owns in Nihon Unisys Limited (NUL) of Japan. Unisys said that the sale of NUL shares will not affect the relationship between the two companies in the Japanese market. NUL will remain the exclusive distributor of Unisys hardware and software products in Japan.

The sale is part of Unisys plan to divest non-core assets. The company intends to use proceeds from the stock sale to fund its previously announced plans to reduce its cost structure in line with its new, more focused business model.

"We are pleased to be able to continue our more than 50-year collaboration with Nihon Unisys Limited to supply Unisys products to the Japanese market and at the same time begin to fund the necessary actions to position Unisys for long-term growth and profitability," said Joe McGrath, president and CEO of Unisys.

Unisys currently owns approximately 28% of the shares in NUL, an information technology services and product company publicly traded in Japan. NUL had annual sales of $2.9 billion in 2005.

Unisys intends to sell its approximately 30.5 million shares of NUL stock and expects to close the sale early next week. Assuming all the shares are sold, Unisys expects to receive in excess of $350 million in cash from the sale.

The sales are subject to certain contingencies. Unisys will offer some of the shares to NUL under NUL's recently announced open-market stock repurchase program. Under this program, NUL will purchase its shares on a first-come, first-serve basis, and there is therefore no guarantee all of the NUL shares tendered by Unisys will be purchased. The sale of the remaining shares is subject to the execution of a definitive agreement and satisfaction of customary closing conditions.

About Unisys

Unisys is a worldwide technology services and solutions company. Our consultants apply Unisys expertise in consulting, systems integration, outsourcing, infrastructure, and server technology to help our clients achieve secure business operations. We build more secure organisations by creating visibility into clients' business operations. Leveraging Unisys 3D Visible Enterprise, we make visible the impact of their decisions--ahead of investments, opportunities and risks. For more information, visit www.unisys.com.

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. The risks and uncertainties associated with this transaction are set forth above. A discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.

RELEASE NO.: 0314/8632

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