Perot Systems Selected by National Life Group for Mainframe Operations Services; Multi-Year IT Outsourcing Deal Supports Two of Insurer's Subsidiaries

PLANO, Texas, Oct. 20 /PRNewswire-FirstCall/ -- Perot Systems Corporation (NYSE: PER) today announced that Vermont-based National Life Group, a growing and diversified family of financial service companies founded more than 150 years ago, has signed a multi-year contract with Perot Systems for mainframe operations services.

Under terms of the deal, Perot Systems will provide data center, storage and network services to the insurer's flagship company, National Life Insurance Company, and to Life Insurance Company of the Southwest. Perot Systems will migrate these insurers' mainframe operations into its Plano, TX data center. Through Perot Systems' global delivery capability, National Life Group will gain flexibility needed to accommodate its business growth projections and cost advantages to enhance its competitive position.

"We are pleased to be moving forward with Perot Systems. The quality and high degree of expertise of their associates and the culture of the Perot Systems organization blends well with National Life Group and our commitment to quality and high performance," said Edward Bonach, executive vice president and chief financial officer for National Life Group.

"This agreement is a further example of how Perot Systems teams with insurers to significantly improve their return on assets," said Peter Altabef, Perot Systems president and CEO. "Through this collaborative approach, we enable our clients to focus resources on their key differentiators -- investment performance, product development and distribution management -- while our scale, expertise and dedicated insurance solutions provide high quality service with a lower cost structure."

Over the last year, Perot Systems has worked with National Life Group on several smaller projects, which have already provided substantial operational improvements and measurable impact for the insurer.

"We are thrilled to expand our work with National Life Group during this exciting period in their business. Perot Systems offers National Life Group the scalability, flexibility and operational stability they need as they broaden their portfolio and create a solid platform for growth," said Paul Hardy, director of insurance solutions for Perot Systems.

National Life Group and National Life Insurance Company are headquartered in Montpelier, VT, while Life Insurance Company of the Southwest is based in Dallas, TX.

About National Life Group

The National Life Group offers a comprehensive portfolio of life insurance, annuity and equity products to help individuals, families and businesses meet their financial goals. This diversified family of financial service companies is made up of its flagship company, National Life Insurance Company which was founded in Montpelier, VT. in 1850, as well as Sentinel Asset Management Inc., Equity Services, Inc. and National Retirement Plan Advisors Inc. all of Montpelier; and Life Insurance Company of the Southwest of Dallas, Texas.

About Perot Systems

Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2005 revenue of $2.0 billion. The company has more than 19,000 associates located in North America, Europe, and Asia. Additional information on Perot Systems is available at http://www.perotsystems.com/ .

This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Among many factors that could affect our business and cause actual results to differ materially are that we may bear the risk of cost overruns for custom software development and implementation services, our contracts generally contain provisions that could allow customers to terminate the contracts and sometimes contain provisions that enable the customer to require changes in pricing, and some contracts contain fixed-price provisions or penalties that could result in decreased profits. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, as filed with the U.S. Securities and Exchange Commission and available at http://www.sec.gov/ , for additional information regarding risk factors. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.

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