XEROX EXTENDS INFORMATION SERVICES CONTRACT WITH EDS.

EDS and Xerox Corporation have announced a $263 million agreement whereby EDS will manage and support Xerox's end-user computing environment, deliver internal Service Desk services, and provide mainframe services for an additional five years. The extended and expanded agreement provides the scale and flexibility for Xerox to stay ahead of technology advances and easily respond to changing and evolving market needs worldwide.

"As long-time business partners, this next stage modernizes our relationship," said John McDermott, CIO for Xerox. "EDS mirrors our global reach and has extensive knowledge of our business, industry and IT in general that helps reduce our overall IT spend and adds to our commitment to improving agility, productivity and service with technology."

This new agreement includes governance processes to drive and support ongoing innovation for both Xerox and EDS and a contract structure that allows for services and technology to be enhanced or replaced over the life of the contract as business needs change.

Under the terms of the agreement, EDS will continue to manage the Xerox employee computing environment, which includes service desk and support for computing devices and servers. Supporting more than 55,000 users in more than 20 countries, the agreement includes enterprise directory, e-mail/mobile/collaboration, account administration, software distribution, asset tracking and security services. EDS will also support users with a single-point-of-contact service desk in 21 languages. In addition, EDS will continue to provide mission-critical and reliable mainframe services, which include hosting and operations management.

"Today's global economy requires product and services companies such as Xerox to have near-real time ability to adapt and change to serve varying and evolving needs worldwide," said Darl Davidson, vice president, U.S. Manufacturing Industry, EDS. "As Xerox's business ally, we're beginning the next chapter of our relationship to help the company launch the next phase in its long and successful existence."

The new delivery model in this agreement expands the use of EDS' Best Shore(R) capabilities through EDS Regional Support Centers worldwide with the extension into Budapest, Hungary, and expansion of EDS' Mumbai, India center. It is also based on the Information Technology Infrastructure Library (ITIL(R)), a standard set of best practice approaches and procedures that improve IT service delivery and helps organizations such as Xerox improve productivity.

EDS Agility Alliance (http://www.eds.com/insights/alliances/agility/) partner Microsoft (http://www.eds.com/insights/alliances/microsoft/) will provide software and operating systems to Xerox as a part of this agreement. The EDS Agility Alliance is a coalition of companies globally recognized for their quality, products and value to clients. Its mission is to innovate, develop and deliver the EDS Agile Enterprise Platform -- EDS' next-generation global delivery system. Together, EDS and its Agility Alliance partners collaborate to design, build and run a market-leading services platform and develop technology-based services to deliver tangible client results. EDS Agility Alliance partners include Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox.

EDS has more than 30 years of experience in the manufacturing industry (http://www.eds.com/industries/manufacturing/) with more than 20,000 employees dedicated to serving this sector. With more than 220 manufacturing clients in 40-plus countries, EDS serves 75 of the top 100 manufacturing companies.

About Xerox Corporation

Xerox Corporation is a global technology and services enterprise that helps businesses deploy smarter document management strategies and find better ways to work. It offers an array of innovative document solutions, services and systems -- including color and black-and-white printers, digital presses, multifunction devices and digital copiers -- designed for offices and production-printing environments. It also offers associated supplies, software and support.

For more information, call 972/797-8751.

About EDS

EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world.

For more information, visit http://www.eds.com or call 972/797-8751.