Commonwealth and Unisys Announce Three-Year $252 Million Contract Extension for Pioneering 'Data Powerhouse' Project

Extension to deliver additional benefits of cost avoidance and service enhancements

Pennsylvania remains only state to successfully consolidate and outsource agencies' data centers

BLUE BELL, Pa., October 14, 2002 – Unisys said today that Gov. Mark Schweiker has announced that the Commonwealth of Pennsylvania has completed a three-year contract extension with Unisys Corporation to continue the award-winning partnership managing the outsourced operation and maintenance of the State's Data PowerHouse facility.

"Years ago, before this project was begun, we had more than twenty agency data centers using duplicate equipment and duplicate staff to deliver very similar services," said Gov. Schweiker.  "Our employees were doing good work, but with this large number of centers we simply couldn't achieve economies of scale to ensure the best investment of our resources.  By bringing these separate data centers together into one state-of-the-art government data center, we're realizing a number of benefits for our agencies and, ultimately, our citizens.

"Unisys has been a tremendous partner on this initiative, helping us achieve one of the most productive data centers in the nation -- in both the public and private sector.  Our contract extension not only makes financial sense, but it will ensure our Data PowerHouse continues to set the blue-ribbon standard for data center operations around the world."

The original seven-year contract with Unisys, which is currently valued at $621 million, was finalized in August 1999 and included provisions for a three-year extension.  This extension, running through 2009, is valued at $252 million.

The Data PowerHouse project is managed by a consortium of 10 companies led by Pennsylvania-based Unisys. 

"The Ridge-Schweiker Administration has been visionary in its understanding of how the strategic application of technology can improve state government and benefit citizens," said Unisys Chairman and CEO Lawrence A. Weinbach. "The Data PowerHouse project is one example of that vision in action.

"Working together, the Commonwealth and Unisys have been able to win national and international awards for the performance of this facility. But what should interest citizens most is our success at streamlining government and safeguarding the many public services that rely on computers in the Data PowerHouse for their smooth operation 24 hours-a-day."

The Data PowerHouse houses mainframe and mid-range computers, and other technology, used by state agencies to process data for driver's license renewals, property tax and rent rebates for senior citizens, processing of criminal files, unemployment compensation claims, and other vital state government services. 

In addition to continuing the outsourcing relationship, the extension includes the delivery of new technology and services to provide enhanced disaster recovery capabilities for critical public services supported by the facility.

Pennsylvania remains the only state government in the nation to have successfully consolidated and outsourced its data centers.

An important new service provided by the Data PowerHouse is the availability of rapid disaster recovery capabilities, which were not widely used by state agencies before 2000.  In the case of an event that might cripple the Data PowerHouse facility, this service provides state agencies, within hours, data processing capabilities from a back-up site located a safe distance away from the main facility.

This extra safeguard ensures that critical state data processing services will be provided if disaster should strike, which is especially important following the events of Sept. 11.

The Data PowerHouse is staffed around-the-clock, providing optimal use of the Commonwealth's computer investments.  The new facility uses robotics and includes the latest security and back-up systems to safeguard data files housed there.

Additionally, the Data PowerHouse provides agencies with the fastest possible access to the latest computing technology.  This ensures agencies are using the best equipment for delivering reliable and rapid response times for their customers.  

The Data PowerHouse has been recognized with two prominent awards.  In 2002, the project was named "Most Strategic" as part of the Outsourcing Journal's Editor's Choice Awards.  Two years earlier, the Data PowerHouse was a finalist for the World Outsourcing Award, finishing second only to the federal government of Australia.

More information on the Schweiker Administration's Data PowerHouse initiative is available through the PA PowerPort at www.state.pa.us, PA Keyword: "Data PowerHouse." 

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.  In particular, because this contract is subject to availability of appropriated funds and is terminable by the commonwealth before the end of its term, the estimated value of the contract is not guaranteed.  Additional discussion of factors that could affect Unisys future results is contained in its periodic filings with the Securities and Exchange Commission.

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RELEASE NO.: 1002/8192
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

Susan Beck, Unisys, 215-986-6036 susan.beck@unisys.com Scott Elliott, Commonwealth News Bureau 717-772-4237