(unaudited)

                                 Third Quarter Ended                                 

Dec. 30,

Dec. 31,

              % of Total              

(In millions)

      2005      

      2004      

Fiscal 2006

Fiscal 2005

   U.S. Commercial

$   998.3   

$   965.6   

28%     

27%     

   Europe

1,021.1   

1,069.9   

29        

31        

   Other International

        334.9   

        309.3   

          9        

          9        

Global Commercial segment

     2,354.3   

     2,344.8   

        66        

        67        

   Department of Defense

820.1   

732.2   

23        

21        

   Civil agencies

366.3   

378.9   

10        

11        

   Other ⁽¹⁾

          36.3   

          32.7   

          1        

          1        

U.S. Federal segment

     1,222.7   

     1,143.8   

        34        

        33        

$3,577.0   
=========

$3,488.6   
=========

100%     
=========

100%     
=========

                                  Nine Months Ended                                  

Dec. 30,

Dec. 31,

              % of Total              

(In millions)

      2005      

      2004      

Fiscal 2006

Fiscal 2005

   U.S. Commercial

$  3,011.1   

$  2,753.9   

28%     

27%     

   Europe

3,041.8   

3,044.9   

29        

30        

   Other International

        991.5   

        911.2   

          9        

          9        

Global Commercial segment

     7,044.4   

     6,710.0   

        66        

        66        

   Department of Defense

2,449.4   

2,154.5   

23        

21        

   Civil agencies

1,126.4   

1,201.5   

10        

12        

   Other ⁽¹⁾

        111.9   

        114.1   

          1        

          1        

U.S. Federal segment

     3,687.7   

     3,470.1   

        34        

        34        

$10,732.1   
=========

$10,180.1   
=========

100%     
=========

100%     
=========

Other revenues consist of state, local and foreign government as well as commercial contracts performed by the U.S. Federal reporting segment.

(In millions except per-share amounts)

   Third Quarter Ended   

     Nine Months Ended     

Dec. 30,

Dec. 31,

Dec. 30,

Dec. 31,

     2005     

     2004     

     2005     

     2004     

Revenues

  $3,577.0   

  $3,488.6   

 $10,732.1  

 $10,180.1  

Costs of services

2,850.0   

2,803.9   

8,653.4  

8,220.3  

Selling, general and administrative

207.7   

198.0   

620.6  

598.0  

Depreciation and amortization

267.9   

267.3   

812.3  

779.1  

Interest expense

24.6   

40.2   

74.6  

119.6  

Interest income

(13.8)  

(3.9)  

(28.1) 

(8.3) 

Special items

          52.0  

Total costs and expenses

    3,336.4   

    3,305.5   

   10,184.8  

     9,708.7  

Income before taxes

240.6   

183.1   

547.3  

471.4  

Taxes on income

         75.5   

         54.0   

        174.0  

        141.6  

Income from continuing operations

165.1   

129.1   

373.3  

329.8  

Discontinued operations, net of taxes

         38.4   

         28.4   

          61.3  

          68.6  

Net income

$    203.5   
========

$    157.5   
========

$     434.6  
========

$     398.4  
========

Earnings per share:

   Continuing operations

$      0.89   

$      0.68   

$       2.01  

$       1.74  

   Discontinued operations

         0.21   

         0.15   

          0.33  

         0.36  

   Basic*

$      1.10   
========

$      0.83   
========

$       2.34  
========

$       2.11  
========

   Continuing operations

$      0.88   

$      0.67   

$       1.99  

$       1.73  

   Discontinued operations

         0.20   

         0.15   

          0.33  

          0.36  

   Diluted*

$      1.08   
========

$      0.82   
========

$       2.32  
========

$       2.08  
========

Average common shares outstanding for:

    Basic EPS

185.679   

190.080   

185.353  

189.053  

    Diluted EPS

187.856   

192.829   

187.137  

191.121  

*Amounts may not add due to rounding

(unaudited)

Dec. 30,

April 1,

(In millions)

       2005       

       2005       

Assets

   Cash and cash equivalents

$     773.2    

$  1,010.3    

   Receivables, net of allowance for doubtful accounts

3,714.9    

3,537.7    

   Prepaid expenses and other current assets

1,423.0    

1,058.0    

   Assets of operations held for sale

            83.8    

      Total current assets

       5,911.1    

       5,689.8    

   Property and equipment, net

2,355.1    

2,365.4    

   Outsourcing contract costs, net

1,161.2    

1,279.6    

   Software, net

458.7    

461.3    

   Goodwill, net

2,293.2    

2,343.4    

   Other assets

          444.5    

          494.4    

      Total assets

$12,623.8    
==========

$12,633.9    
==========

Liabilities

   Short-term debt and current maturities of long-term debt

$     115.3    

$       85.7    

   Accounts payable and other accrued expenses

2,685.4    

2,816.8    

   Deferred revenue

647.1    

562.7    

   Federal, state and foreign income taxes

494.2    

395.8    

   Liabilities of operations held for sale

            16.9    

      Total current liabilities

       3,942.0    

       3,877.9    

   Long-term debt, net

1,321.6    

1,303.0    

   Other long-term liabilities

851.9    

958.3    

   Stockholders' equity

       6,508.3    

       6,494.7    

      Total liabilities and stockholders' equity

$12,623.8    
==========

$12,633.9    
==========

(unaudited)

        Nine Months Ended        

(In millions)

Dec. 30,

Dec. 31,

       2005       

       2004       

Cash flows from operating activities:

   Net income

$   434.6    

$   398.4    

   Adjustments to reconcile net income to net

   cash provided by operating activities:

      Depreciation and amortization and other non-cash charges

871.4    

849.2    

      Changes in assets and liabilities, net of effects of acquisitions:

         Increase in assets

(543.5)   

(854.8)   

         Increase in liabilities

            43.9    

          567.3    

Net cash provided by operating activities

          806.4    

          960.1    

Investing activities:

   Purchases of property and equipment

(629.4)   

(619.7)   

   Acquisitions, net of cash acquired

(44.1)   

(20.5)   

   Dispositions

.5    

31.3    

   Outsourcing contracts

(175.2)   

(218.2)   

   Software

(121.1)   

(150.5)   

   Other investing cash flows

            68.5    

        (118.9)   

Net cash used in investing activities

        (900.8)   

     (1,096.5)   

Financing activities:

   Borrowings under lines of credit, net

24.4    

7.7    

   Principal payments on long-term debt

(5.9)   

(5.2)   

   Proceeds from stock option and other common stock transactions

62.5    

109.6    

   Acquisition of treasury stock

(227.7)   

   Other financing cash flows

              5.0    

              8.4    

Net cash provided by (used in) financing activities

        (141.7)   

          120.5    

Effect of exchange rate changes on cash and cash equivalents

            (1.0)   

            12.2    

Net decrease in cash and cash equivalents

(237.1)   

(3.7)   

Cash and cash equivalents at beginning of year

       1,010.3    

          562.8    

Cash and cash equivalents at end of period

$   773.2    
==========

$   559.1    
==========

The following tables reconcile Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA); Earnings Before Interest and Taxes (EBIT); and Free Cash Flow to the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). CSC management believes that these three non-GAAP financial measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide another measure of the Company's profitability and ability to service its debt, and are considered important measures by financial analysts covering CSC and its peers.

GAAP Reconciliations

(In millions)

EBITDA / EBIT (unaudited)

 Third Quarter Ended 

   Nine Months Ended   

Dec. 30,

Dec. 31,

Dec. 30,

Dec. 31,

     2005     

     2004     

     2005     

     2004     

EBITDA and special items

$   519.3   

$   486.7   

$1,458.1   

$1,361.8   

   Special items

        52.0   

EBITDA

519.3   

486.7   

1,406.1   

1,361.8   

   Depreciation and amortization

      267.9   

      267.3   

      812.3   

      779.1   

EBIT

251.4   

219.4   

593.8   

582.7   

   Interest, net

        10.8   

        36.3   

        46.5   

      111.3   

Income Before Taxes

240.6   

183.1   

547.3   

471.4   

   Taxes on income

        75.5   

        54.0   

      174.0   

      141.6   

Income from continuing operations

165.1   

129.1   

373.3   

329.8   

Discontinued operations, net of taxes

        38.4   

        28.4   

        61.3   

        68.6   

Net Income

$   203.5   
========

$   157.5   
========

$   434.6   
========

$   398.4   
========

Free Cash Flow (unaudited)

   Nine Months Ended   

Dec. 30,

Dec. 31,

     2005     

     2004     

Free Cash Flow

$   (50.8)  

$         .4   

Net cash used in investing activities

900.8   

1,096.5   

Acquisitions, net of cash acquired

(44.1)  

(20.5)  

Dispositions

.5   

31.3   

Available-for-sale securities*

    (147.6)  

Net cash provided by operating activities

$   806.4   
========

$   960.1   
========

*As a result of guidance issued by the SEC in its March 4, 2005 "Current Accounting and Disclosure Issues" the Company reclassified certain securities held on April 2, 2004 and December 31, 2004 from cash to available-for-sale investments. This reclassification increased cash used in investing activities for the nine months ended December 31, 2004. The Company believes it is appropriate to exclude such cash flows from its measurement of free cash flows.

The following table is presented to illustrate the impact of the Nortel impairment charge, as discussed in the Company's November 3, 2005 press release, on earnings per share. It also provides a reconciliation of the earnings per share amount relating to this item to earnings per share for continuing operations. The earnings per share amounts presented below include non-GAAP measures. This table should be read in conjunction with the Consolidated Statements of Income within this release on which the GAAP earnings per share measures are presented. Earnings per share before special items provides a basis for comparing current operating performance to past and future operating performance.

 Third Quarter Ended 

   Nine Months Ended   

    December 30, 2005    

    December 30, 2005    

EPS

EPS

Amount

 (diluted) 

 Amount 

 (diluted) 

Net income and EPS (diluted), as reported

$ 203.5   

$   1.08   

$ 434.6   

$   2.32   

Less: Gain on discontinued operations

       38.4   

       0.20   

       61.3   

       0.33   

Income from continuing operations

165.1   

0.88   

373.3   

1.99   

Add back: Special items

       33.1   

       0.18   

Income from continuing operations before

  special items

  $ 165.1   
=======

$   0.88   
=======

  $ 406.4   
=======

$   2.17   
=======

Average common shares outstanding for diluted EPS

187.856   

187.137   

Notes:

All figures are net of taxes.

Figures are in millions except per-share amounts.

Amounts may not add due to rounding.