California State University System Calls On Unisys For Major Outsourcing Initiative To Improve Administrative Services

March 13, 2001

A new agreement between the California State University system (CSU) and Unisys will help the CSU streamline administrative support services for its 370,000 students and provide cost-effective financial and human resources support for more than 41,500 faculty and staff on all 23campuses.

CSU and the information technology e-business solutions provider, Unisys, have signed a five-year, $60.1 million agreement, with an option for a three-year extension and the purchase of additional services. Unisys will handle server hosting and the operations support of the software applications for CSU’s Common Management Systems (CMS) suite of Peoplesoft integrated software.

CMS is a systemwide effort to improve administrative services by replacing and standardizing CSU’s financial human resources, and student data systems. By working together as a university system, the CSU campuses will be able to replace systems more efficiently.

“Unisys provided a PeopleSoft technical solution that meshed perfectly with our requirements,” said CSU Chancellor Charles B. Reed. “Our schedule for campus implementation of this software system was a challenge, but Unisys demonstrated an understanding of providing outsourced operations support that was consistent with our ambitious plans.”

Production readiness for CSU will begin in July 2001 from Unisys’ Salt Lake City Service Center. The entire CSU system is expected to be on line by the end of 2006.

“This is a wonderful opportunity to leverage our PeopleSoft skills in the dynamic world of higher education,” said Bob Evans, president, Unisys Global Outsourcing. “It was evident from the beginning that the Unisys people, the CSU technical community and the Office of the Chancellor all were on the same page regarding their goals for growth and applying technology in a way that made sense for them.”

About Unisys

Unisys is an electronic business solutions company whose 37,000 employees help customers in 100 countries apply information technology to seize opportunities and overcome challenges of the Internet economy. Unisys people integrate and deliver the solutions, services, platforms and network infrastructure required by business and government to transform their organizations for success in this new era. The company offers a rich portfolio of Unisys e-@ction Solutions for electronic business based on its expertise in vertical industry solutions, network services, outsourcing, systems integration and multivendor support, coupled with enterprise-class server and related technologies. The primary vertical markets Unisys serves worldwide include financial services, transportation, communications, publishing and commercial sectors, as well as the public sector, including federal government customers. Unisys is headquartered in Blue Bell, Pa., in the Greater Philadelphia area. For more information on the company, access the Unisys home page at www.unisys.com.

About California State University

The California State University is the largest four-year university system in the country. More than 21,200 faculty teach 370,000 students on 23 CSU campuses and six off-campus centers extending from Humboldt County in the north to San Diego in the south. Altogether, about half the bachelor’s degrees and a third of the master’s degrees awarded in California are from the CSU.

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 are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. In particular, statements in this release regarding anticipated revenues are based on the companies’ current expectations for the subject contract, for which no volume of services are guaranteed. Additional discussion of factors that could affect each company’s future results is contained in its periodic filings with the Securities and Exchange Commission.

Unisys and California State University system disclaim any proprietary interest in the marks and names of others.