El Segundo, Calif., and CAPE TOWN, SA, Oct. 29 -- Old Mutual (LSE and JSE: Old Mutual) and Computer Sciences Corporation (NYSE: CSC) today announced a seven-year information technology (I/T) management agreement. Estimated value of the agreement over the full seven years is approximately $300 million (R 2.1 billion).

The agreement calls for CSC to acquire and manage Old Mutual's South African I/T infrastructure including mainframe and midrange computers, servers, desktops, help- desk and system software support. These computing assets will create one of the largest data centers within CSC. Formal transition of I/T operations from Old Mutual to CSC will occur November 1.

As part of the agreement, an estimated 430 staff employed by or contracted to Old Mutual and based in South Africa will join CSC. Existing alliances that Old Mutual has in place with other information technology organizations such as Omnilink and Uskotec will not be impacted.

According to Gerhard van Niekerk, managing director for Old Mutual South Africa, "Old Mutual's objective to maximize shareholder value is fundamental to the alliance. This will be achieved through reduced costs and improved productivity, and through participating in the further development of CSC's business in South Africa."

At a media briefing in Cape Town today, Old Mutual Chief Information Officer, Vic Lumby, said the alliance will give Old Mutual access to CSC's international practices, procedures and skills. "We recognize that efficient use of information technology is essential to Old Mutual remaining a leading financial services group in South Africa. As our I/T infrastructure services partner, CSC can bring huge advantages in terms of flexibility and responsiveness in a changing market. The greater experience and economies of scale brought to bear will further increase Old Mutual's competitiveness.

"Services, pricing and service levels will reflect the needs of Old Mutual's business units and we anticipate real, long-term operational savings. End user satisfaction will increase as will the professional development opportunities for transitioning staff. At the same time, Old Mutual will be able to focus on the exploitation and integration of I/T-based solutions in order to meet our customers' needs."

Added Van B. Honeycutt, CSC chairman, president and chief executive officer, "This agreement makes CSC a leading I/T services provider in South Africa. Old Mutual is the country's largest financial services firm, and is on a dynamic course of growth. Our goal is to support their ambitious plans by creating a more efficient, streamlined infrastructure."

Honeycutt noted that with the Old Mutual award, CSC has announced approximately $2 billion in new business this week. Fiscal year to date, new business awards now exceed $7 billion. Prospects for new opportunities across all industries and service areas continue to be strong.

As part of the agreement, CSC has appointed its first country manager to oversee all activities in South Africa. Martin Vergunst has been named CSC's new division managing director, African region.

"Since 1991, CSC has successfully integrated people, processes and services for more than 80 companies through sourcing agreements, embracing best practices and innovations for each company," Vergunst said. "This agreement makes CSC an I/T leader in South Africa and the alliance will clearly strengthen and support CSC's presence and aggressive expansion plans in the region."

Vergunst added that CSC's flexible culture and demonstrated I/T excellence will improve customer service, reduce costs, streamline Old Mutual's I/T infrastructure and improve its global delivery capability.

"As I/T requirements in the financial services industry become more complex and sophisticated, CSC is positioning itself to provide added value by formulating business strategy, driving business processes, enabling innovation and transforming competitive models," Vergunst said.

Old Mutual plc is an international financial services group, based in London, with a substantial life assurance business in southern Africa and an integrated portfolio of activities in asset management (including unit trusts, portfolio management and stockbroking services), banking and general insurance.

On 12 July 1999, Old Mutual plc listed successfully on the London, Johannesburg, Namibia, Malawi and Zimbabwe Stock Exchanges. On 20 September, Old Mutual joined the FTSE 100 Share Index.

Together with its two JSE-listed subsidiaries, Nedcor and Mutual & Federal, Old Mutual is the leading financial services group in southern Africa, measured by total assets. In the UK, Old Mutual's interests include Old Mutual Asset Managers (OMAM), Capel-Cure Sharp and Albert E. Sharp Securities.

Based on the recent share price of 130p, Old Mutual had a market capitalisation of £4.5 billion. As at 30 June 1999, Old Mutual's embedded value was £4.7 billion, an increase of 34% over the value at 31 December 1998. Total third party funds under management, as at 30 June 1999, were in excess of £40 billion.

For more information, visit the company's web site at www.oldmutual.com.

Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 54,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service and technology offerings, including e-business strategies and technologies; management and I/T consulting; systems development and integration; application software; and I/T and business process outsourcing.

Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. CSC has formed similar alliances with a number of world- class companies including British Aerospace, JP Morgan, DuPont, Hughes Electronics, General Dynamics and NASA. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $8.2 billion for the twelve months ended October 1, 1999. Its headquarters are in El Segundo, California.

CSC Computer Sciences (South Africa) is based in Cape Town. Currently CSC has about 70 I/T employees in South Africa. Banking customers include Nedcor Bank, ABSA and FNB, a division of the FirstRand banking group, where CSC provides systems integration and product support for various CSC software applications. In addition, CSC is part of an innovative joint venture with Hollard Life Assurance, offering group benefits products for the rapidly changing employee benefits market in South Africa. CSC provides state-of-the-art administration systems and back-office processing to Hollard.

CSC's Financial Services Group offers a comprehensive array of business and technology solutions which support the complex requirements of the evolving global financial services industry. Customers include more than 1,000 banks, insurers, investment firms, consumer finance companies and other major financial services organisations around the globe.

For more information, visit the company's web site at www.csc.com.