EDS Awarded Web Hosting Contract From Centers for Medicare & Medicaid Services

HERNDON, Va., July 10 /PRNewswire-FirstCall/ -- EDS (NYSE: EDS) today announced the Centers for Medicare & Medicaid Services (CMS) awarded the company a task order to provide web hosting services to support all of CMS' outward facing websites. The value of contract will be $41 million if all options are exercised. This is the second task order issued to EDS under the CMS Enterprise Data Center (EDC) $1.9 billion Indefinite Delivery/Indefinite Quantity contract, a multi-vendor vehicle CMS is using to consolidate data center operations. The first task order, awarded in April, was worth up to $29 million.

EDS is one of three companies competing for task orders under the 10-year EDC contract to consolidate CMS operations performed at more than 20 different facilities. Under the new task order, EDS will support the http://www.medicare.gov/ and http://www.cms.hhs.gov/ domains - the agency's primary vehicles for communicating with U.S. citizens. EDS will also support other CMS web-based mid-tier legacy applications as well as disaster recovery and testing operations for these applications. Additionally, EDS will provide workload transition support and daily production management services on equipment dedicated to CMS.

"This task order will allow CMS to cut data center costs and improve responsiveness to the millions of users of Medicare services," said Don Picard, vice president, EDS Civilian Healthcare. "The work performed by EDS under these task orders begins CMS' first step toward consolidating the agency's mid-tier applications into an EDC environment."

EDS was awarded the first EDC task order to establish the first operational Enterprise Data Center to process fee-for-service Medicare claims. The new task order, awarded following a competition between the three EDC vendors, calls for a six-month transition period followed by seven one-year options.

"With the award of these two task orders, EDS is well-positioned to be even more responsive to the agency's needs for further consolidation, as they move additional applications and work into our facility," said Jim Duffey, EDS general manager, U.S. Public Sector. "We continue to build on our record as a trusted partner to the government since the inception of the Medicare program."

As a part of the contract, EDS Agility Alliance partners Cisco, EMC, Sun Microsystems and Dell will provide key components.

EDS' breadth of experience supporting the Medicare program spans nearly four decades and touches a number of critical Medicare services. The company is the largest provider of Medicare fee-for-service data center operations, processing more than 285 million claims each year. EDS also maintains the Medicare Part B Standard System, used to process over 800 million claims annually, and is the largest CMS Program Safeguard Contractor providing fraud, waste and abuse detection services in a variety of states.

EDS' wholly owned subsidiary, National Heritage Insurance Company (NHIC), is a Medicare Part B Carrier that administers $8 billion in Medicare benefits annually for beneficiaries in California, Maine, Vermont, New Hampshire and Massachusetts.

About EDS

EDS (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 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. Learn more at http://www.eds.com/ .

The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward- looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-K. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

   CONTACT:
   Brad Bass - EDS
   703-733-3193
   Brad.bass@eds.com