Announcement Underscores CSC’s Ability to Sustain Long-term Business Relationships El SEGUNDO, Calif., May 2 – Computer Sciences Corporation (NYSE: CSC) announced today that, in accordance with the downselect negotiations previously announced on Dec. 20, 2005, it has signed a next generation information technology (IT) outsourcing services agreement with BAE Systems, the premier transatlantic defense and aerospace company. The new contract replaces the existing agreement that would otherwise expire in October 2006. The five-year contract is valued at approximately $1.9 billion.
Under the new agreement, CSC will continue to manage a full range of IT operations for a number of BAE Systems businesses, from mainframe and midrange computers, servers and desktops, to local and wide area networking, Internet services, help desk, applications development and support, and procurement services.
CSC’s relationship with BAE Systems began in April 1994 when the companies signed a 10-year, $1.5 billion IT outsourcing contract in the UK, which was then one of the largest commercial IT outsourcing contracts ever awarded to a single supplier in Europe. The relationship was expanded to support multiple mergers and acquisitions in both the UK and the U.S. Through the existing agreement, CSC provides IT services in support of 13 BAE Systems businesses and joint ventures operating in more than 117 locations in the UK and North America.
“Since 1994, BAE Systems and CSC have worked together to respond to technology changes in the IT arena,” said Steve Barrett, Programme Director, BAE Systems. “This new next generation outsourcing contract delivers flexibility, improved service and savings that BAE Systems businesses need.”
“We are pleased to have finalized this new contract and look forward to applying our experience and expertise to continue delivering significant operational results to BAE Systems,” said CSC Chairman and Chief Executive Officer Van B. Honeycutt. “This agreement demonstrates CSC’s dynamic ability to support BAE Systems’ diverse businesses and implement new technologies to help meet the company’s changing business requirements.”
About BAE SystemsBAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With more than 100,000 employees worldwide, BAE Systems’ sales exceeded 15.4 billion pounds sterling (US$28 billion) in 2005.
BAE Systems was advised by TPI and Pinsent Masons.
About CSC Founded in 1959, Computer Sciences Corporation is a leading global IT services company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 80,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC’s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.6 billion for the 12 months ended Dec. 30, 2005. For more information, visit the company’s Web site at
www.csc.com.
