CSC REPORTS RECORD Q1 REVENUE AND OPERATING INCOME

Pressemelding -- August 05, 2008

Solid Gains Recorded in All Three Lines of Business
with Balanced Performance Across All Verticals and Geographies

FALLS CHURCH, Va., Aug. 5 -- CSC (NYSE: CSC) today reported revenues of $4.44 billion for the fiscal 2009 first quarter, up 15.6% year over year, and earnings per share for the quarter of 79 cents (diluted), an increase of 29.5% year over year.

Summary first quarter results include:

Net income for the first quarter was $120.6 million, or 79 cents per share (diluted), compared to last year’s first quarter earnings per share of 61 cents. Last year’s earnings per share included special items of approximately 19 cents related to restructuring and an executive retirement agreement. All revenues, costs and operating income reflect the impact of acquisitions, currency and the fact that fiscal 2009 is a 53-week year with the extra week included in the first quarter.

Business Unit Performance

As outlined on June 5, 2008, at CSC’s Investor Day presentation, CSC is now disclosing revenues by the company’s three primary lines of business: Business Solutions and Services (BS&S), Global Outsourcing Services (GOS) and North American Public Sector (NPS). This change better reflects the company’s organization under CSC’s multi-year strategic initiative and provides enhanced visibility into the company’s progress toward achieving its goals of improving revenue growth, operating margin and ROIC.

CSC’s 15.6% (approximately 12% in constant currency) quarterly revenue gain was led by BS&S, which grew in excess of 39% (31% in constant currency) and recorded $1.18 billion in revenues compared to $848.1 million in the year-ago quarter. GOS posted a solid first quarter revenue total of $1.79 billion, up 12.3% (approximately 8% in constant currency) compared with $1.59 billion last year.

For the first quarter, NPS revenue increased 5.1% to $1.49 billion from $1.42 billion for last year’s first quarter. Revenue derived from DoD-related business was $1.02 billion, up 8.1% from last year’s $943.4 million. Civil agency activities generated revenue of $426.0 million, down from $440.5 million last year. NPS other segment revenue was $46.4 million, compared to $36.1 million in last year’s first quarter. The pipeline of qualified projects continues to grow and now stands at $43 billion, of which nearly $20 billion is scheduled for award during the remainder of fiscal 2009.

The company’s revenue by industry group also demonstrated solid growth performance. Five of the six vertical industries reported double-digit revenue gains compared with the year-ago quarter, including Financial Services; Manufacturing; Technology and Consumer; Healthcare; and Chemical, Energy and Natural Resources. Four of the industry groups delivered quarterly revenue of over $500 million.

From a geographic perspective, all four primary regions served by CSC demonstrated double-digit revenue growth. The Americas reported revenue of $2.72 billion, up 14.1%; EMEA delivered revenue of $1.28 billion, up 16.8%; Australia’s revenue was $273 million, up 23.1%; and Asia reported revenue of $164 million, up 27.8%.

Announced new business awards and orders for the first quarter were approximately $5.4 billion. These awards and orders were comprised of $2.9 billion from GOS, $1.2 billion from NPS and $1.2 billion for BS&S.

“We are very pleased with our new business activity, earnings and revenue growth for the first quarter,” said CSC Chairman, President and Chief Executive Officer Michael W. Laphen. “Our first quarter performance clearly demonstrates we are making good progress toward our annual financial goals, including free cash flow, which is on plan, and we expect to continue to move forward in achieving our strategic target of diversifying our portfolio. As a result of our portfolio diversification efforts, we achieved a better business balance at the end of the first quarter with Business Solutions and Services up to 27% of our revenue, North American Public Sector at 33% and Global Outsourcing Services at 40%. Additionally, we anticipate future improvements in our growth, profitability and cash flow due to this improving mix, enabling us to continue our expansion of integrated offerings across selected global markets and industries.”

Guidance

For the second quarter, ending Oct. 3, 2008, CSC anticipates revenue to be in the range of $4.25 billion to $4.35 billion, an increase of 6% to 8% year over year. Earnings per share for the second quarter are expected to be in the range of 70 cents to 80 cents.

For the full fiscal year 2009, CSC continues to expect revenue growth, excluding any fiscal year 2009 acquisitions, to be in the 6% to 8% range and earnings per share to be in the $4.20 to $4.40 range, an increase of 9% to 15% year over year. Free cash flow for fiscal year 2009 is expected to be approximately 80% to 90% of net income.

As announced in the company’s press release dated July 14, 2008, a teleconference will be held today at 5:00 p.m. EDT to discuss first quarter results. This teleconference can be accessed from the CSC Web site at www.csc.com/investorrelations, in a listen-only mode, and slides will also be available at this site immediately prior to the call.

About CSC

CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions & Services, Global Outsourcing Services and the North American Public Sector. CSC’s advanced capabilities include systems design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, Va., CSC has approximately 90,000 employees and reported revenue of $17.1 billion for the 12 months ended July 4, 2008. For more information, visit the company’s Web site at www.csc.com.

All statements in this press release and in all future press releases 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 “Risk Factors” in CSC’s Form 10-K for the fiscal year ended March 28, 2008. 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.