Rolls-Royce Awards EDS $2.1 Billion Contract; NewAgreement Extends EDS-Indiana's Contract With...

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--July 10, 2000

EDS-Indiana announced today that Rolls-Royce has agreed to extend its successful technology, services and consulting relationship with EDS for an unprecedented 12 years.

The long-term contract, worth $2.1

The new agreement, which runs until 2012, builds on an existing relationship that began in 1996 with Rolls-Royce's aerospace business and was later expanded to include Indianapolis-based operations.

"We are pleased to continue our successful relationship with Rolls-Royce in Indianapolis," said Les Willis, Client Executive, Rolls-Royce North America for EDS. "Together, we've shown that information technology and a partnership based on service excellence can be a powerful, competitive advantage."

"Value for money and service delivery will be key in providing the technology and consulting expertise in e-business and supply chain management which Rolls-Royce will need in the next decade," explained Chris Hole, Director of Procurement, Rolls-Royce plc. "EDS has become our strategic partner in building a truly global, integrated company."

The focus for the initial phase of the new agreement between Rolls-Royce and EDS will be on enabling business integration and work-share collaboration. This will include e-business solutions, with plans currently for three portals covering supply chain, design collaboration and corporate information; consulting-led business initiatives for global supply chain; innovative Application Service Provision offerings; and further improvements in IT services.

EDS already provides IT services to Rolls-Royce across North America and the United Kingdom. In addition, EDS is responsible for Rolls-Royce's IT infrastructure, network, systems and applications, and end-user support.

Rolls-Royce plc is a global company providing power on land, sea and air. The company has established leading positions in civil aerospace, defense, marine and energy markets. Its core gas turbine technology has created one of the broadest product ranges of aero engines in the world, with 55,000 engines in service in over 150 countries. Customers include more than 500 airlines, 2,400 corporate and utility operators and 160 armed forces, using both fixed and rotary wing aircraft.

EDS is a recognized global leader in providing e-business and information technology services to 9,000 business and government clients in about 50 countries around the world. Having founded the IT services industry more than 35 years ago, EDS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy. The company brings deep industry practice knowledge to solve challenges in a wide variety of industries, including communications, energy and chemicals, financial services, government, healthcare, products and retailing, and travel and transportation. EDS reported revenues of $18.5 billion in 1999. The company's stock is traded on the New York Stock Exchange (NYSE:EDS) and the London Stock Exchange. To find out more about the EDS vision, visit EDS at 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, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form (10-Q). 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.