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UNISYS TO ADOPT FASB STANDARDS 106 AND 109 IN FIRST QUARTER 1993

 UNISYS TO ADOPT FASB STANDARDS 106 AND 109 IN FIRST QUARTER 1993
 BLUE BELL, Pa., Nov. 3 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) said today that effective Jan. 1, 1993, it will adopt Financial Accounting Standards Board (FASB) Statement 106 affecting post-retirement medical benefits accounting, and Statement 109, a tax accounting and reporting change affecting the company's financial statements.
 Under Statement 106 mandated by FASB, U.S. companies must reserve for the projected costs of both current and future retiree medical benefits on their balance sheet. In the past many companies, including Unisys, have recognized only the annual cost of retirement medical benefits in the year in which benefits are paid. Based on preliminary estimates, Unisys expects to report in first quarter 1993 a pre-tax charge of not more than $260 million, or $170 million after tax, from the adoption of Statement 106.
 FASB Statement 109 establishes new accounting and reporting standards for the effects of income taxes during current and past years. Based on preliminary estimates, the company expects that the cumulative effect of this change will increase net income in the first quarter of 1993 in the range of $325 million to $425 million.
 Unisys also announced that because of the national problem of health-care cost escalation, it will make significant modifications to its retiree medical program effective Jan. 1, 1993. The company said that over the past two years, it has made a series of difficult decisions to return to profitability in an industry that continues to undergo fundamental transformation and shrinking margins. Changes to the post-retirement medical program will balance Unisys objective to provide access to a cost-effective program at group rates with a commitment to sustain the company's financial recovery.
 Over the past several years, Unisys said current employees have increasingly paid more of the costs of their health care coverage under Unisys plans. At the same time, Unisys has continued to subsidize nearly the full cost of group coverage for more than 25,000 retirees and their eligible dependents.
 Effective Jan. 1, 1993, coverage for most current and future retirees and their eligible dependents under multiple existing plans will be provided under a plan similar in design to the one that covers most of the company's active employees. The Unisys subsidy toward the cost of purchasing coverage will be phased out over time, ending as of Jan. 1, 1996.
 "The problem of escalating health care costs and medical inflation has become a national crisis," said James A. Unruh, Unisys chairman and chief executive officer. "In 1992, Unisys will spend close to $200 million on health care expenses in the U.S., almost equal to the company's net income for the first nine months of 1992. Left unchecked, that expense to the company will continue to grow dramatically in 1993 and beyond, threatening to erode Unisys income and net worth. After a thorough review, we have chosen a course of action that will make valuable coverage available at group rates while safeguarding our improving financial position."
 Without any change in the post-retirement plan, Unisys estimated it would have taken a one-time pre-tax charge of $1.1 billion or an after- tax charge of approximately $700 million, about one-third of current net worth. The annual expense for the retiree program would have been approximately $100 million in 1993 and would have increased yearly had the program modifications not been made.
 Unisys said plan information with enrollment details will be mailed to retirees beginning Nov. 3. A toll-free communications support system for the month of November is being set up solely to handle enrollment questions and administrative details for current retirees.
 /delval/
 -0- 11/3/92
 /CONTACT: J. Peter Hynes of Unisys, 215-986-6948/
 (UIS) CO: Unisys Corporation ST: Pennsylvania IN: CPR SU:


MP -- PH001 -- 1919 11/03/92 08:08 EST
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Date:Nov 3, 1992
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