EL SEGUNDO, Calif., May 14 -- Computer Sciences Corporation (NYSE: CSC) today reported results for its fiscal 2002 fourth quarter, ended March 29, 2002. Revenues were $3.05 billion, the first quarter in the company's history in which revenue has exceeded $3 billion. Earnings per share (diluted) were 82 cents, within the range of the company's January 31, 2002 guidance and above the consensus estimate.

Revenue growth for the quarter was driven primarily by gains from CSC's U.S. federal government operations and the company's North American and European commercial outsourcing activities. The quarter's results include strong cash flow performance and significant further balance sheet improvements.

Last year's fiscal fourth quarter included special charges of $148.7 million, before income taxes, which principally resulted from the global restructuring activities announced during March of 2001.

For the fourth quarter (ended March 29):

• Revenues were $3.05 billion, a 5.1% increase (approximately 7% in constant currency) over last year's comparable quarter;


• Net income was $141.1 million;


• Earnings per share (diluted) were 82 cents;


• and announced new business awards were $1.5 billion.

For the twelve months (ended March 29):

• Revenues were $11.4 billion, up 8.6% (approximately 10% in constant currency) over fiscal 2001;


• Net income and earnings per share (diluted) were $344.1 million and $2.01 respectively;


• and announced new business awards totaled $11.4 billion.

We are pleased with our level of profitability and revenue growth in the fourth quarter," said Van B. Honeycutt, CSC's chairman and chief executive officer. "The 18% revenue growth from our U.S. federal government activities was a major contributor, supported by solid gains from North American and European commercial outsourcing engagements. Throughout fiscal 2002, we continued to deliver on our profit improvement plan. Our ability to control expenses while increasing revenue was instrumental in delivering results in line with our expectations. We have streamlined our organization and eliminated redundant activities, which has produced reductions in our overhead and strengthened our ability to deliver value-added solutions to our customers.

"We are addressing a healthy commercial outsourcing pipeline containing significant opportunities for us to provide the efficiencies and value of outsourcing to clients worldwide," Honeycutt continued. "As a provider of outsourcing services, we are very well positioned to benefit from growth in this important sector of IT services. The combination of commercial outsourcing and U.S. federal government revenue constituted over 70% of our global revenue for fiscal 2002. This revenue is comprised principally of long-term contracts and is generally recurring in nature, increasing visibility into our future revenue stream.

"Positive structural and strategic changes have been implemented in our North American consulting and systems integration activities," he added. "We have a market-differentiated, geographical operating model for the North American Consulting operations. We are concentrating on new solutions and offerings to a focused set of vertical industry segments, leveraging our unique plan-build-manage capability. These actions have resulted in an improved win rate; an increased pipeline of opportunities across industries and our lines of service; and improved utilization. We have strengthened our consulting and systems integration offerings which better positions us to benefit from a more favorable market environment as it occurs.

"As we begin this fiscal year, we are committed to continuing the improved operating efficiencies demonstrated last year," Honeycutt said. "We expect that as both the economy and the global demand for IT services improves, our results will improve as we progress through fiscal 2003."

BUSINESS RESULTS

For the fourth quarter, global commercial revenues were $2.21 billion (up approximately 3% in constant currency) compared with $2.19 billion for last year's fourth quarter. U.S. commercial revenue was $1.11 billion, essentially unchanged from last year. European revenue was $773.5 million, up 5.3% (approximately 10% in constant currency) from last year's $734.3 million and non-European international revenue declined 6.1% (approximately 3% in constant currency) to $326.4 million. The local currency revenue growth in Europe was driven largely by outsourcing engagements, particularly in the United Kingdom, and year-over-year gains in continental Southern Europe from consulting and systems integration activities.

CSC's U.S. federal government activities for the fourth quarter delivered very robust revenue growth, increasing to $834.5 million, up 18% from the $707.2 million recorded in last year's comparable quarter. CSC's civil agencies business rose 19.7% to $306 million, up from $255.7 million last year, fueled by a significant contribution from the IRS Modernization activity; our support of the Immigration and Naturalization Service; and a combination of new awards and additional task orders from other civil agencies. Revenues from CSC's Department of Defense activities were $528.5 million, up 17.1% from last year's $451.5 million, with major contributions from new and increased work from intelligence community activities; the Army's Logistics Modernization award; and several other task order activities involving security and related defense activities.

"Our 35-month federal opportunity pipeline of approximately $26 billion gives us continued confidence in the growth prospects for this important element of our revenue," Honeycutt said. "We believe U.S. federal government spending on information systems and services will increase approximately 10% annually over the next few years. As a proven and trusted partner with over 40 years of support to the U.S. federal government for IT services, CSC is well positioned to take advantage of this trend. Our track record and leadership status as a premier provider of outsourcing services to the U.S. federal government will continue to enhance our success in delivering results to commercial clients worldwide.

"Our commercial sector experience also enables us to win new business as we address an increasing number of modernization opportunities with agencies and departments of the U.S. federal government," Honeycutt continued. "Improved financial systems, budget and performance integration, and electronic access to selected government information are high priorities in today's environment. These priorities require rapid exchange of analyzed information; utilization of significant IT resources for network modernization; security; and correlation of disparate data within and between all levels of government. Initiatives are being designed to make agencies and departments within the U.S. federal government more responsive and effective, and the talents and capabilities necessary to implement these initiatives are areas of strength for CSC."

As announced in the company's press release dated April 11, 2002, a teleconference will be held today at 5:00 p.m. EDT to discuss the fourth quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investorrelations in a listen only mode.

CSC, 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 67,000 employees in locations worldwide, CSC had revenues of $11.4 billion for the twelve months ended March 29, 2002. 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 December 28, 2001.

Note to Analysts and Editors: Please see attached tables.

Revenue by Market Sector

Consolidated
Statements of Income

Additional Financial Information