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Unisys Wins Bid to Continue Operating and Maintaining One of World’s Largest RFID Networks for Department of Defense


RFID provides valuable logistics support vital to the U.S. military’s missions and the federal government’s national security objectives in the global war on terror

BLUE BELL, Pa., June 13, 2007 – Unisys Corp (NYSE: UIS) today announced that the U.S. Department of Defense (DoD) awarded the company a follow-on contract to enhance visibility in the worldwide military logistics supply chain. The contract term is one base year and three one-year options, exercisable at the discretion of the government.

 

The contract, which includes firm fixed-price and time and materials work, is worth approximately $28 million in the first year, if the government continues to order time and materials work at the current level. The total value of the contract could be approximately $112 million if the government exercises all options and continues to order time and materials work at the current level. In addition, the contract provides for the award of additional fees if performance metrics are exceeded and the imposition of penalties if the metrics are not met.

 

Award of this contract allows Unisys to continue its efforts on the RFID program that began 13 years ago. Unisys has been working with DoD to develop, maintain and enhance an in-transit visibility system utilizing radio frequency identification technology. Providing visibility almost instantaneously into the location of supplies and shipments enables the military to increase its agility to supply units and soldiers with critical supplies in a timely manner, focus on mission-critical activities and respond quickly to mission changes.

 

“We are excited about the opportunity to continue our partnership with DoD on this program, operating and evolving one of the world’s largest RFID networks,” said Greg Baroni, president, Unisys Federal Systems.

 

“War fighters labor in austere circumstances and environments. Unisys, with partners L-3 Communications TMSD and WFI Government Services, is proud to support our soldiers globally with this network,” he added.

 

 

How RFID Enables the Military
Unisys tracks approximately 125,000 shipments of supplies each week, including ammunition, food/rations and water, medical supplies, vehicles, vehicle parts and aircraft. Attached to these shipments are RFID tags that store information vital to the soldier.

 

Unisys tracks shipments across all modes of transportation - truck, rail, ship and air - to their final destinations in combatant commands worldwide.

 

Fixed and handheld readers send and receive radio signals to and from the tags. Because data written to each tag are replicated among five servers, users worldwide have access to the same information on each item. Consequently, decision-makers at all levels of command and throughout the logistics supply chain can plan, prioritize and redirect shipments accordingly and collaboratively.

 

 

Unisys – Industry Leader in RFID
Unisys, an industry leader in the integration, deployment and support of automatic identification technology, and the U.S. Army have worked tirelessly to establish, develop, operate and maintain one of the largest, most successful RFID networks in the world. Unisys involvement, which began in 1994 after Operation Desert Storm, has grown steadily to include individuals deployed in the United States and 31 other countries.



About Unisys
Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialize in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. 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. Statements in this release regarding the value of the contract are predicated on the assumption that, for the time and materials portions of the contract, the government will continue to order services at the current level. In addition, the contract values assume that no additional fees will be awarded as a result of exceeding performance metrics and that no penalties will be imposed for failing to meet these metrics. Further, because agreements with government agencies are terminable before the end of their terms and are subject to the availability of appropriated funds, the values in this release are 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.: 0607/8788
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

 

Jenny Grendel, Peppercom, 212-931-6107
jgrendel@peppercom.com

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