U.S. Bureau of Prisons Contracts with Unisys for Nationwide Deployment of Telephony Solution

Unisys work at more than 110 federal corrections institutions could be worth as much as $96 million

BLUE BELL, Pa., September 14, 2005 – Unisys Corporation (NYSE: UIS) announced today that the U.S. Federal Bureau of Prisons (BOP) has awarded the company a contract for the nationwide deployment and operation of the next-generation federal inmate telephone system. Under the Inmate Telephone System-3 (ITS-3) contract, Unisys will provide hardware, installation, maintenance and program management support.

The contract has a three-year base period and three one-year options exercisable at the sole discretion of the government.  The estimated value for the three-year base period is $37 million.  If all option years are exercised, the estimated value to Unisys could be $96 million.  Revenue during the base and option periods includes revenue generated by inmate calling.

Chief among the benefits of ITS-3 are cost savings, hardware space reduction and scalability.  The Unisys solution requires just one-eighth the hardware space of the current inmate telephone system and is comprised of advanced commercial off-the-shelf hardware and software applications.  The company is poised to offer similar solutions to U.S. state and local and international correctional institution markets.

To service the more than 100 federal correctional institutions in the United States and Puerto Rico, Unisys will rely on its own ES3120 servers, as well as telephony hardware from Intel Corp. and the inmate telephone software application, which is being provided by Value Added Communications, based in Plano, Texas.

With ITS-3, inmates will be able to make calls in three ways:  direct debit from their prison commissary accounts; collect; or pre-paid collect.

“Unisys understands the relationship between reliable information technology systems and the safe and efficient operations of correctional institutions,” said Greg Baroni, president, Unisys Global Public Sector.  “Building on our state and local criminal justice experience, we’re providing the Bureau of Prisons with a scalable, reliable and flexible solution.”

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 uncertainties that could cause actual results to differ materially from expectations.  Most of the contract revenue is derived from fees for collect calls made by inmates. Statements in this release regarding the estimated values of the base period and the total contract are based on the assumption that inmate collect calling will continue at current levels.  Statements regarding the total value of the contract are based on the additional assumption that the government will exercise all options, which is entirely at its discretion. Further, since contracts with governmental entities are terminable before the end of their terms and are subject to the availability of funding, the contract value is not guaranteed.  Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.

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RELEASE NO.: 0905/8576
Unisys is a registered trademark of Unisys Corporation. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.

Contacts

Lisa Meyer, Unisys, 703-439-5887 Lisa.Meyer@Unisys.com