News Release-- January 31, 2002

CSC REPORTS THIRD QUARTER EARNINGS PER SHARE OF 51 CENTS AND SOLID REVENUE GROWTH

EL SEGUNDO, Calif., Jan. 31-- Computer Sciences Corporation (NYSE: CSC) today reported results for its fiscal 2002 third quarter, ended December 28, 2001. Revenues were $2.9 billion and earnings per share (diluted) were 51 cents, in line with the company’s November 1, 2001 projected earnings per share range. The third quarter’s results were driven by revenue growth from CSC’s U.S. federal government activities, global commercial outsourcing engagements and financial services activities, which benefited from the December 2000 acquisition of Mynd Corporation.

Last year’s fiscal third quarter included special charges of $84.2 million, which principally resulted from the restructuring of CSC’s global financial services activities following the December 2000 acquisition of Mynd Corporation.

For the third quarter (ended December 28):

• Revenues were $2.9 billion, an 8.9% increase over fiscal 2001;



• Net income was $87.1 million;



• Earnings per share (diluted) were 51 cents;



• and announced major new business awards were $3.2 billion.

For the nine months (ended December 28):

• Revenues were $8.4 billion, up 9.9% over the comparable nine-month period of fiscal 2001 (up 11.3% in constant currency);



• Net income was $203 million;



• Earnings per share (diluted) were $1.19;



• and announced major new business awards totaled $10.2 billion.

“We are pleased with the progress we have made over the first three quarters of fiscal 2002 transitioning from the very difficult environment of late fiscal 2001,” said Van B. Honeycutt, CSC’s chairman and chief executive officer. “While the current environment continues to be challenging, the solid performance of CSC’s global commercial outsourcing activities, the strong revenue growth from our U.S. federal government operations and additional revenue generating opportunities within the financial services market provided the major contributions to our increased quarterly revenue. Our execution of cost reduction efforts, including back-office consolidations initiated during our fiscal 2001, continue to pay dividends. As part of this focus, our Pinnacle Alliance unit was integrated into our financial services vertical to better align our resources and capabilities with the demands of the global market. Further, in December 2001, we realigned our U.S. healthcare operations to provide more tightly integrated services to our healthcare clients.

“We have structured our North American based consulting and systems integration business to address the current market demand for these services, resulting in improved performance levels,” Honeycutt added. “We are well positioned in this marketplace to take advantage of increased opportunities when the requirements for IT services return to a more healthy demand environment. We have recently experienced some anticipated slowdown in the growth rate for consulting and systems integration services outside of North America, although so far not as severe as in the U.S.

“We continue to be pleased with our progress on aligning the execution and performance of our recent outsourcing engagements to meet the needs of our clients. By virtue of improved performance and constructive changes to those contracts, we have solidified the relationships.

“Security issues continue to be of critical importance to the U.S. federal government and to commercial clients around the world,” Honeycutt added. “We introduced an enterprise information risk management service, CSC CyberCare, in December 2001, which is designed to support the full range of information assurance and information security needs of clients on a global basis. CSC CyberCare marks a major milestone in the application of state-of-the-art information security tools and expertise to provide comprehensive, uniform solutions tailored to the specific needs of clients in both industry and governments worldwide. CSC’s position as a leading provider of information and physical security services to the U.S. federal government and worldwide commercial clients, with approximately 1,000 professionals dedicated to this effort, is more critical now than ever in today’s security conscious environment.

“The healthy demand for global commercial outsourcing and the strong opportunity set within the U.S. federal government are illustrative of the market dynamics we believe will lead to continued revenue potential for CSC,” continued Honeycutt. “We announced a total of $350 million in new long-term awards this morning, $200 million in aggregate with three German commercial entities and one award in the U.S. federal market of $150 million, bringing our fiscal year-to-date total to $11.2 billion, already exceeding last year’s total of $10.9 billion.

“CSC’s ability to deliver fully integrated information technology solutions that encompass a broad array of technologies and services is of paramount importance to our global clients in today’s economic environment,” Honeycutt added. “Over the years, our success in matching the strengths of CSC to the needs of our clients is well-recognized, and we believe this focus will continue to provide benefits in the future.

“As we enter the last quarter of fiscal 2002, we remain comfortable with our previous earnings and revenue guidance, but given the ongoing difficult IT services environment and recent further strengthening of the U.S. dollar, we are more likely to see earnings toward the low end of that $2.00 to $2.10 per share (diluted) range, and revenue growth toward the low end of the 9% to 11% range, assuming no further currency erosion or significant downturn in the global economy.”

BUSINESS RESULTS

For the third quarter, global commercial revenues grew 7.2%, to $2.2 billion compared with $2.0 billion in last year’s third quarter. The strong revenue performance from the company’s global outsourcing activity and financial services operation, enhanced by the Mynd acquisition, was moderated by the continued slowdown in the rate of growth for commercial consulting and systems integration project work in North America and elsewhere. U.S. commercial revenue rose 9.5%, to $1.1 billion from last year’s $1 billion, fueled by solid contributions from U.S. commercial outsourcing clients. European revenue, led by commercial outsourcing activities, was up 8.7%, rising to $764.3 million from last year’s $703.4 million. European nine-month, year-over-year revenue growth was a solid 16.9%. Non-European international revenue was down 3.2% to $304.1 million from last year’s $314.2 million, primarily due to strength in outsourcing being more than offset by reduced demand for consulting and systems integration services resulting from the weakness in the Asian economies.

Revenue derived from CSC’s U.S. federal government activities increased to $737.5 million, up 13.9% from the $647.5 million recorded in last year’s third quarter. Department of Defense (DoD) activities rose 15.5% to $461.5 million from last year’s $399.4 million, with meaningful contributions from the National Security Agency Groundbreaker award, the Army Logistics Modernization program and other additional task orders. Revenue from CSC’s civil agencies business rose to $276 million, up 11.3%, from $248.1 million last year, aided by increased work under the IRS Modernization award, the Health Care Financing Administration (HCFA) and several new awards.

“We are addressing a robust federal market pipeline of approximately $21 billion of opportunities over the next 26 months,” said Honeycutt. “CSC’s capabilities, resources and track record places us in a strong position as one of the preeminent providers of information technology services to the U.S. federal government. We believe the application of these IT services helps the government streamline and modernize its agencies and departments, and is an essential ingredient in its effort to increase and improve its service levels to the citizens of the U.S.”

As announced in the company’s press release dated January 15, 2002, a teleconference will be held today at 5:00 p.m. EST, to discuss the third quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investorrelations/, in a listen-only mode.

Computer Sciences Corporation, one of the world’s leading consulting and 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 $11.3 billion for the twelve months ended December 28, 2001. It is headquartered in El Segundo, California. For more information, visit the company’s Web site at www.csc.com.

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in CSC’s Form 10-Q for the quarter ended September 28, 2001.

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