News Release-- July 31, 2002

CSC REPORTS FIRST QUARTER EARNINGS PER SHARE OF 46 CENTS

EL SEGUNDO, Calif., July 31 -- Computer Sciences Corporation (NYSE: CSC) today reported results for its fiscal 2003 first quarter, ended June 28, 2002. Revenues were $2.76 billion, up 2%, and earnings per share (diluted) were 46 cents, up 64% over last year's first quarter.

Effective March 30, 2002, the company adopted SFAS No. 142, which eliminates the amortization of goodwill and certain intangible assets. Earnings per share before goodwill and employee workforce amortization increased 18% over the same period last year. This year's fiscal first quarter revenue increase was primarily driven by U.S. federal government activities. Earnings per share growth resulted from continued profitability improvement.

For the first quarter (ended June 28):

• Revenues were $2.76 billion, a 2% increase over last year's comparable quarter (approximately 1% in constant currency);



• Net income was $79.0 million;



• Earnings per share (diluted) were 46 cents;



• and announced major new business awards were $1.1 billion.

“Our first quarter performance again illustrates our balance, diversity and breadth of service offerings across an array of varied vertical and geographic markets for information technology services," said Van B. Honeycutt, CSC's chairman and chief executive officer. "Our U.S. federal government activities, with 18% revenue growth, were the primary driver of this revenue performance and comprised 29% of our quarterly revenue. Global commercial outsourcing accounted for another 48% of CSC's total revenue and, together, these two long-term contract revenue sources totaled approximately 77%.

"To capitalize on the growing demand for interagency data integration and to better position our U.S. federal government activities to take advantage of the rapid growth in demand for IT services in the U.S. federal government, we have established a new Enforcement, Security and Intelligence Division," Honeycutt said. "This division will closely align with the proposed new federal Department of Homeland Security and consolidate our business operations and outsourcing in support of federal law enforcement, public safety and security, and all intelligence agencies.

“Our North American consulting and systems integration activities have been operating under a significant slowdown in demand for several quarters," Honeycutt continued. "Our focus on specific vertical markets with our unique plan-build-manage competency, along with structural and other strategic moves, has resulted in a stronger competitive position. For the quarter just ended, our North American consulting and systems integration revenues were ahead of the preceding quarter, ended March 29, 2002, and profitability improved compared to both the first quarter of last fiscal year and the preceding quarter.

"Both our global commercial outsourcing and U.S. federal opportunity pipelines are healthy and provide a source of confidence as we pursue a substantial set of potential client engagements," he added. "The difficult worldwide economy has lengthened the global commercial outsourcing decision-making process, but it has not resulted in a diminished pipeline. Our record of success in delivering cost savings and operational improvements to clients globally positions us to benefit from this expanding IT outsourcing market. We will continue our discipline around controlling our costs, improving operating efficiencies and aggressively pursuing those opportunities which will contribute to our long-term success and improve our return on investment.

"Both Lee Level, CSC's chief financial officer, and I intend to submit sworn statements on CSC's SEC filings when CSC files its first quarter Form 10-Q, which is due by Aug. 12, " Honeycutt said. CSC plans to disclose the statements in a Form 8-K and post them on its Web site, www.csc.com.

BUSINESS RESULTS

For the first quarter, revenue derived from CSC’s U.S. federal government activities showed excellent growth, increasing to $791.7 million, up 17.6% from the $673.2 million recorded in last year’s comparable quarter. Department of Defense (DoD) activities rose 15.2% to $472.9 million from last year's $410.6 million, with significant contributions from intelligence community activities and several new awards and task orders. Civil agencies business rose to $318.8 million, up 21.4% from the $262.6 million reported last year, aided primarily by increased work from the IRS Modernization activity and additional tasking from NASA, the Environmental Protection Agency and the Immigration and Naturalization Service.

Global commercial revenues declined 3.3% (approximately 4.9% in constant currency), to $1.97 billion compared with $2.04 billion in last year’s first quarter. The continued slowdown in demand for global commercial consulting and systems integration project work was partially offset by growth in the company's global outsourcing activities. U.S. commercial revenue was $1.0 billion, down 4.8%. European revenue was $681.9 million, essentially unchanged from the same quarter a year ago (down approximately 3.5% in constant currency). CSC's non-European international revenue declined 5.2% (approximately 8.4% in constant currency) from last year's $303.3 million.

“We are addressing a robust federal market pipeline of approximately $25 billion of opportunities expected to be awarded over the next 32 months, including approximately $12 billion scheduled to be awarded over the remainder of our fiscal year,” said Honeycutt. "The federal government continues to look to the private sector for commercial best practices to help it streamline and modernize its service delivery capabilities and address heightened security concerns. CSC, as a premier provider of broad end-to-end IT services to both the commercial and federal markets, is well positioned to benefit from this strong opportunity set.”

As announced in the company’s press release dated July 17, 2002, a teleconference will be held today at 5:00 p.m. EDT to discuss the first 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 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 more than 66,000 employees in locations worldwide, CSC had revenues of $11.5 billion for the 12 months ended June 28, 2002. It is headquartered in El Segundo, Calif. 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-K for the year ended March 29, 2002.

Note to Analysts and Editors: Please see attached tables.

Revenue by Market Sector

Consolidated
Statements of Income

Additional Financial Information