FALLS CHURCH, Va., Dec. 5, 2001 -- Computer Sciences Corporation (NYSE: CSC) and the U.S. Department of Education’s (DoEd) Office of Student Financial Assistance (SFA) have agreed to extend a student loan data center task order by an additional four-and-a-half years to the year 2011. CSC estimates the extension will add approximately $229 million to the task order agreement if all options are exercised.

CSC and the DoEd also converted the agreement to a performance-based contract, marking a major milestone in reducing student aid delivery costs as part of the SFA’s strategy to focus on business results rather than delivery details. The 1998 Reauthorization of the Higher Education Programs established the Office of Student Financial Assistance as the federal government’s first performance-based organization.

“CSC will help the Department of Education deliver improved service and reduce the cost of delivering aid to American students seeking financial assistance,” said Marcia Kim, vice president of CSC’s Citizen Services. “In extending this task order, SFA is acknowledging the value of a public-private partnership in a performance-based environment. With the help of best practices from CSC’s commercial outsourcing business, we will achieve greater efficiencies and cost savings for the taxpayer.”

Since 1997, CSC has helped the DoEd migrate and consolidate eight SFA legacy systems into a seamless and accessible system for the office, students, and bank and university personnel. The migration has already saved the department millions of dollars by consolidating its storage facilities into a single CSC data center and leveraging the company’s global technology infrastructure.

CSC and the DoEd will further lower the cost per transaction under the new performance-based agreement, which allows CSC to develop solutions focused on business results. Also under the new agreement the company will operate under a comprehensive set of service agreements.

The Department of Education is currently modernizing the delivery of major federal student aid programs, including Pell Grants and Stafford Loans, which provide more than $50 billion a year to help millions of students pay for the costs of college.

About CSC
Computer Sciences Corporation, one of the world’s leading consulting and information technology (IT) services firms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company’s success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.

Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of global corporations and organizations. With some 68,000 employees in locations worldwide, CSC had revenues of $11.1 billion for the 12 months ended Sept. 28, 2001. It is headquartered in El Segundo, Calif. For more information, visit the company’s Web site at www.csc.com.