CSC REPORTS FIRST QUARTER RESULTS IN LINE WITH PREVIOUS GUIDANCE

News Release -- August 01, 2006

EL SEGUNDO, Calif., Aug. 1 -- Computer Sciences Corporation (NYSE: CSC) today reported results for its fiscal 2007 first quarter, ended June 30, 2006. After a special pre-tax charge related to the restructuring program announced on April 4, 2006, of $215 million, partially offset by an $18.3 million pre-tax gain on the redemption of the DynCorp International preferred stock, or 90 cents per share, net, the company reported a net loss of $55.3 million, or 29 cents per share (diluted). Diluted earnings per share from continuing operations, excluding the special items, were 61 cents. Last year’s first quarter earnings per share from continuing operations were 58 cents. This year’s quarter includes a 4 cent adverse incremental impact of stock options expense resulting from the adoption of SFAS 123R.

Revenue for the first quarter was $3.56 billion, ahead of estimates, but down slightly (approximately 1% in constant currency) from last year’s first quarter. Solid revenue growth from CSC’s U.S. federal government activities, as well as the company’s Australia and Asia operations, was offset by declines in commercial revenue in the U.S. and Europe.

For the first quarter, CSC’s U.S. federal government revenue increased 5.8% to $1.29 billion from $1.22 billion for the first quarter of fiscal 2006. Revenue derived from CSC’s DoD-related business was $853.8 million, up 7.5% from last year’s $793.9 million. Several existing engagements and recent new business awards, including Mission Support Services, Vance Air Force Base and the U.S. Army’s Flight School XXI, among others, contributed to the revenue increase. CSC’s civil agencies activities generated revenue of $404.1 million, up 7.3%, compared to $376.7 million last year. Work for the U.S. Department of Education, the FAA and NASA contributed positively to the quarter’s activity. Other federal segment revenue, comprised of state, local and foreign government as well as commercial contracts performed by the U.S. federal segment, was $33.7 million, down from last year’s $50.3 million.

First quarter global commercial revenue was $2.26 billion, compared to $2.36 billion in the year-ago quarter, a decline of 4.1% (down approximately 4% in constant currency). U.S. commercial revenue was $976.6 million, down 3%, compared with $1.01 billion last year. European revenue was $941.9 million, a decline of 9.2% (down approximately 8% in constant currency) from $1.04 billion for the first quarter last year. CSC's non-European international revenue was $346.1 million, up 9% (approximately 8% in constant currency), compared with last year’s $317.5 million.

North American consulting and systems integration activities delivered modest gains in revenue and profitability with slight increases in utilization, hourly billing rates and headcount compared to the comparable quarter last year. The shorter-term activities market in Europe continues to be impacted negatively by soft demand in Germany and Italy.

“Our solid first quarter results begin another year of anticipated improved operational performance,” said CSC Chairman and Chief Executive Officer Van B. Honeycutt. “Our U.S. federal government activities for the quarter delivered good growth as we continue to exhibit a leadership role in the federal information technology services market. We continue to be encouraged by the strong revenue growth reported by our operations in Australia and Asia. The quality and quantity of our federal and commercial pipelines are expected to provide us ample opportunities to enhance our operational progress going forward.

“The information technology services market for agencies and departments of the U.S. federal government continues to demonstrate solid demand. We expect to continue to be a leader in providing IT services to this large, growing and important market. Just yesterday we announced our selection by the U.S. Army for an Information Technology Enterprise Solutions-2 Services (ITES-2S) contract to provide a comprehensive range of IT services to support the Army’s enterprise infrastructure worldwide. We have valued the nine-year contract at approximately $2 billion if all options are exercised.”

The company’s U.S. federal pipeline of opportunities over the next 20 months is approximately $36 billion, comprised of more than 450 programs across a broad spectrum of government agencies and departments. This pipeline is up approximately 17% over last year’s comparable 20-month set, and about $15 billion of the total is scheduled for award in the current fiscal year. Major business announcements, federal and commercial, for the first quarter were $2.2 billion.

The restructuring program announced in April involving workforce reductions, primarily in Europe, is proceeding as planned. The restructuring program is designed to streamline the company’s worldwide operations, further leverage the increased use of lower-cost resources and significantly improve future cash flow and earnings.

Updated Guidance

“For fiscal 2007, ending March 30, 2007, we continue to anticipate revenue to be up approximately 2% to 3% excluding the effect of any acquisitions,” said Honeycutt. “We are revising upward our 2007 fiscal year earnings per share guidance from the previous range of $3.61 to $3.71, to the range of $3.71 to $3.81, including the adverse incremental impact of options expensing and the estimated 10 cent benefit of the share repurchase, previously announced on June 29, 2006, but excluding the net restructuring charge. For the second quarter, ending September 29, we anticipate revenue to be in the range of $3.5 billion to $3.6 billion and earnings per share to be in the high 60 cent to low 70 cent range, including the effect of options expensing and share repurchase, but excluding any restructuring charge.”

Conference Call

As announced in the company’s press release dated July 10, 2006, a teleconference will be held today at 5:00 p.m. EDT to discuss the www.csc.com/investorrelations, in a listen-only mode.

Update on Options Queries

Two shareholders of the Company have filed purported derivative actions against the Company, as nominal defendant, and certain of CSC's executive officers and directors. The two actions, which are expected to be consolidated, allege that the individual defendants breached their fiduciary duty to the Company by purportedly “backdating” stock options granted to CSC executives, improperly recording and accounting for allegedly backdated stock options, and producing and disseminating disclosures that improperly recorded and accounted for the allegedly backdated options. They allege that certain of the defendants were unjustly enriched and seek to require them to disgorge their profits.

In response to an investigation of the Company's option grant practices by the U.S. Securities and Exchange Commission and the United States Attorney’s Office in the Eastern District of New York, the Company's Board of Directors has established a special committee of directors to conduct an independent investigation into CSC's option grant practices. The special committee's investigation is still in a preliminary stage. The Company and the special committee are cooperating with the SEC and the U.S. Attorney on these matters.

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 78,000 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 June 30, 2006. 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 fiscal year ended March 31, 2006. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent events or otherwise except as required by law.

Note to Analysts and Editors: Please see attached tables.