Austin, Texas, May 19 -- Computer Sciences Corporation (NYSE: CSC) announced it has signed an agreement to expand and extend for five years and expand its business process outsourcing (BPO) relationship with Fidelity and Guaranty Life Insurance Co. (F&G Life) of Baltimore, Md.

The original agreement, which began in November 1995, has been extended to the year 2013. The value of the extension and the expanded services is approximately $425 million, boosting the total contract value to $540 million over an 18-year period. The agreement strengthens the strategic alliance and cooperative relationship between CSC and F&G Life.

"F&G Life has chosen to concentrate on our core business strengths, which include product manufacturing, distribution and investment management," said Mark Singleton, senior vice president, finance and operations, F&G Life. "Partnering with CSC provides us with expert handling of business operations such as insurance policy administration, new business processing, underwriting, customer service and management of supporting information technology infrastructures."

"This agreement is revolutionary in its approach because it is based on the value delivered instead of the transaction-based or policy-based pricing of most BPO agreements," said Neil Schappert, executive vice president, CSC's Financial Services Group. "For example, CSC has invested heavily in a digital infrastructure that enables us to operate as a virtual extension of F&G Life's operations. Extensive networking links all of CSC's administrative sites, F&G Life's sites, and selected F&G Life distributors' sites into a responsive, integrated electronic network, enabling us to seamlessly deliver our services.

"This agreement also allows F&G Life to benefit from CSC's full range of capabilities," Schappert added. "Yet it remains adaptable, so they can make adjustments for increased sales as they enter new markets and launch new products.

F&G Life, with more than $5 billion in assets, has offered a diverse portfolio of financial protection products for nearly 40 years. One of the most rapidly growing companies in the life insurance industry, F&G Life has led the nation in equity indexed annuity sales for the past six months, according to The Advantage Group, St. Louis. F&G Life, a subsidiary of The St. Paul Companies, offers annuities, life insurance, structured settlements and tax-sheltered annuities. For more information, visit the company's web site at www.fglife.com.

The St. Paul Companies (NYSE: SPC) of St. Paul, Minn., is a group of companies that provides insurance and reinsurance products and services worldwide. The St. Paul Companies ranks 171 on the FORTUNE 500 list of largest companies in the United States. It had revenues of $9 billion and total assets of $38.2 billion for the year ending December 31, 1998.

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 organizations around the globe.

Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. The company develops individual business solutions that are delivered by CSC's 50,000 employees in more than 700 offices worldwide in areas such as management and information technology consulting, systems consulting and integration, operations support and information services outsourcing.

Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. The company maintains numerous agreements with hardware and software technology companies and thus is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $7.7 billion for the twelve months ended April 2, 1999. Its headquarters are in El Segundo, California. For more information, visit the company's web site at www.csc.com.