EDS: EDS unveils plans to simplify business approach an and stimulate growth.

M2 PRESSWIRE-10 September 1999-EDS: EDS unveils plans to simplify business approach and stimulate growth (C)1994-99 M2 COMMUNICATIONS LTD

RDATE:090999

* Company Will Deliver Solutions Globally with Increased Focus on Electronic Business

PLANO, Texas -- EDS announced today it will fundamentally alter the way it does business to meet the demands of the new digital economy by focusing on four global lines of business. Those lines of business, aimed at driving growth for EDS and improving performance for its clients, include: A. T. Kearney; E.solutions; Business Process Management; and Information Solutions.

"We are making these changes to ignite our growth engines and to reclaim leadership in the industry we founded," said Chairman and Chief Executive Officer Dick Brown. "EDS is uniquely positioned to offer its clients unsurpassed end-to-end capabilities and experience in implementing solutions and services on a global basis. We need to bring those core strengths to our clients and build our future foundation on the highest possible levels of client satisfaction."

The company said the changes it is making will simplify EDS' face to the market; give EDS a clear client focus; create four fully integrated, global businesses; elevate global industry expertise, and enhance career growth and development opportunities. These objectives will be met through collaboration among these lines of business:

* E.solutions: In the fast-growing, $120 billion solutions consulting market, E.solutions will offer clients expertise

in a full range of electronic business capabilities, including E.communities, Internet solutions and applications, and enterprise applications. John McCain, 40, president, will continue to lead this business line.

* Business Process Management (BPM): Clients in the burgeoning, $130-billion-plus market for Business Process Management, can look to EDS for expertise in enterprise customer management, claims processing, and settlement processing solutions. Previously part of E.solutions, BPM will become a separate business line to focus attention on the unique features that drive growth and success in that market. Kim McMann, 41, former president of EDS' State Business and of the State Health Care strategic business unit, has been named president of this line of business.

* A. T. Kearney: Already the second-largest firm in the $25 billion to $35 billion high-value consulting market, A. T. Kearney's global presence spans every major and emerging market. The firm offers strategic, operational, organizational, and information technology consulting and executive search services to the world's leading companies. Fred G. Steingraber, 61, will continue as chief executive officer of this line of business.

* Information Solutions: Already a top global player in this market, EDS offers clients expertise in managing centralized systems, distributed systems, communications, and applications development. The worldwide IT services market exceeds $110 billion annually. Douglas Frederick, 49, who joined EDS in July 1999, has been named president of this business line.

In addition to these changes, the company is establishing global industry experts who will provide a consistent, current repository of global industry knowledge across all four lines of business. Collaboration among the industry and line-of-business teams is aimed at dramatically improving EDS' ability to deliver world-class value propositions to its clients based on the full breadth of EDS' capabilities.

The focus on client service is the number one priority. Each client will have a single EDS executive responsible for the overall relationship and services EDS provides that client worldwide. "The Client Executive is the most important of the newly created positions," Brown said. "This person will be accountable for ensuring our clients receive the best possible service, globally and across all four lines of business, and is totally committed to client satisfaction."

The changes at EDS are currently being communicated to employees and clients around the world and will be implemented beginning Oct. 1. Brown added, "Superior client satisfaction is at the heart of any great company's success and has always been a core value at EDS. The changes we're making mark a stronger and more consistent focus across our company on driving growth and improved performance for clients around the globe. Their satisfaction and success are the keys to EDS' future growth and vitality in the booming IT services market."

EDS, a leader in the global information technology services industry for more than 35 years, delivers management consulting, electronic business solutions, and systems and technology expertise to improve the performance of more than 9,000 business and government clients in about 50 countries. EDS reported revenues of $16.9 billion in 1998. The company's stock is traded on the New York Stock Exchange (NYSE:EDS) and the London Stock Exchange. Visit EDS via the Internet at http://www.eds.com.

Note to Editors: Executive Information

Before his E.solutions assignment, McCain led CIO Services, a global organization of 5,000 professionals that generated more than $1 billion in annual revenue. Services included Internet solutions, digital supply chain, enterprise customer management and technology, and training solutions. He joined EDS in 1986 and has held a variety of sales and executive positions. McCain graduated from Indiana University with a bachelor of science degree in management and administration and completed postgraduate studies at the Wharton School of Business.

An EDS employee since 1979, McMann has served in numerous account and executive positions for Medicaid, government, retail, industry training businesses throughout the United States. She serves as a director of National Heritage Insurance Co., an EDS subsidiary, and as a member of the Board of Kinetra. She earned a bachelor of arts degree in mathematics and business administration from Vanderbilt University.

Steingraber has been CEO of A.T. Kearney since 1983. The 35-year veteran of the company has served in a variety of executive positions in the United States and Europe. Steingraber joined A.T. Kearney in 1964 and was named managing director of the German operations in 1969; in 1972 he was elected a vice president and shareholder of the firm. Steingraber earned a Bachelor of Science degree in economics and business from Indiana University. He also earned a Master of Business Administration degree from the University of Chicago.

Before EDS, Frederick was executive vice president of the Baan Company, an enterprise business software provider. Frederick also held various management positions with the Boeing Company from 1979 to 1997. As director of Information Systems Business Support in 1996, he led the largest business process design project in the world. An Alfred P. Sloan Fellow, he earned a master of science degree in management technology from the Massachusetts Institute of Technology in 1990. He also holds advanced degrees from Seattle University and the University of Washington and a bachelor of science degree in chemistry, physics and mathematics from Washington State University.

The statements in this news release regarding the future 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, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, please see EDS' filings with the Securities and Exchange Commission. 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.

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