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UNISYS FINDS NO SUBSTANCE TO CHARGES OF IRREGULARITIES IN TRANSACTIONS WITH CHICAGO PUBLIC SCHOOLS

 CHICAGO, Jan. 29 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) said today that a review of an "audit" of transactions involving computer hardware and services for the Chicago Public Schools (CPS) showed no irregularities of any substance.
 The company said it is confident that it has acted properly and in the best interests of CPS. Unisys has been a supplier to the school system for 23 years.
 Unisys said it hoped to arrange meetings with the newly appointed CPS management team to discuss the issues raised in the "audit" and to reaffirm that Unisys has acted in the best interests of CPS.
 Unisys said that on Dec. 18, 1992, the CPS legal department notified the company that its local account representative was restricted from CPS premises on the basis of a change in management of CPS. Upon further inquiries of the CPS, Unisys learned of an investigation, but was given no details concerning the nature of the investigation. Through newspaper accounts, the company learned of an "audit" conducted by an accounting firm asserting overcharges for equipment and other irregularities. Presumably this audit report serves as the basis of the CPS investigation.
 As of this date, Unisys has not been advised by the CPS of the basis for any alleged improprieties. The company subsequently was able to review the audit report, finding gross inaccuracies concerning conclusions drawn about overcharges. In one instance, a computer capable of handling 250 CPS users was mistaken in the audit report to have been a simple PC, and the report suggested that Unisys, through UPP Business Systems Inc., charged the CPS too much for a PC.
 Unisys determined that the equipment in question is not a PC, but rather a powerful UNIX system computer. It was competitively priced, with a generous discount to CPS. Unisys said all other items in the report have similar explanations, and the company can demonstrate full and proper conduct in its dealings with CPS.
 The concerns raised in the audit report apparently have led to a federal investigation of the same issues. Unisys has pledged complete cooperation and is confident that its conduct was entirely lawful and proper.
 Unisys said it has provided, and will continue to provide, competitive products and services to this long-time customer. During the current investigation, Unisys has agreed to provide ongoing services to keep the installed computers in full operation.
 -0- 1/29/93
 /CONTACT: Mark S. Lipscomb, 215-986-3290, or J. Peter Hynes, 215-986-6948, both of Unisys/
 (UIS)


CO: Unisys Corporation; Chicago Public Schools ST: Illinois IN: CPR SU:

CC -- PH048 -- 1002 01/29/93 18:08 EST
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Publication:PR Newswire
Date:Jan 29, 1993
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