CSC Selected by BAE Systems to Negotiate It Services Contract With Potential Value of $1.9 Billion

EL SEGUNDO, Calif., Dec. 20 /PRNewswire-FirstCall/ -- Computer Sciences Corporation today announced that it has been downselected for the provision of the next generation of information technology (IT) outsourcing services to BAE Systems. This contract is subject to completion of successful negotiations and final approvals. It will replace the existing contract that would otherwise expire in October 2006. CSC estimates the potential value of the new contract to be approximately $1.9 billion over a period of five years. The position with regard to the Submarines business in the UK remains under review.

CSC's relationship with BAE Systems began in April 1994 when the companies signed a 10-year, $1.5 billion IT outsourcing contract in the UK, which was then one of the largest commercial IT outsourcing contracts ever awarded to a single supplier in Europe. The relationship was expanded to support multiple mergers in both the UK and the U.S. Through the current agreement, CSC provides IT services in support of 13 BAE Systems businesses and Joint Ventures operating in more than 117 locations in the UK and North America.

"We are pleased to continue our successful and longstanding relationship with BAE Systems," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "This new agreement demonstrates CSC's dynamic ability to provide innovative solutions to meet client needs and adapt to changing IT and business requirements. We look forward to applying our experience and expertise to help to deliver significant operational results to BAE Systems."

"This potential contract with CSC represents the next generation of IT outsourcing," said Alastair Imrie, Group Managing Director, Shared Services, BAE Systems. "It will provide cost reduction, contract flexibility and technology and process improvements, in support of BAE Systems' business requirements."

About BAE Systems

BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs over 90,000 people and generates annual sales of approximately £14.8 billion through its wholly owned and joint-venture operations.

About CSC

Founded in 1959, Computer Sciences Corporation is a leading global IT services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 78,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.5 billion for the 12 months ended Sept. 30, 2005. For more information, visit the company's Web site at http://www.csc.com/.