Unisys Awarded RFID III Contract by U.S. Department of Defense for Radio Frequency Identification Technology

Contract Broadens Unisys 14-year Relationship with U.S. Department of Defense to Include RFID Hardware and Software

RESTON, Va. – Unisys Corporation (NYSE: UIS) today announced that it was one of four companies selected by the U.S. Army Program Executive Office-Enterprise Information Systems for an indefinite delivery indefinite quantity contract with a three-year base period and seven one-year options, exercisable at the discretion of the government, for the Radio Frequency Identification III (RFID III) program. Under this contract, which has a total ceiling value of $428 million, Unisys will compete for task orders to provide RFID technology and services to all U.S. federal government agencies as well as to NATO and other coalition partner countries.

This contract broadens the scope of RFID-related technology and services that Unisys can offer to the Department of Defense and other government agencies.

Unisys has been providing RFID solutions as a prime contractor to the U.S. Department of Defense (DoD) since 1994, following Operation Desert Storm. The partnership has resulted in the creation of one of the largest active RFID networks in the world, the Army’s RFID In-Transit Visibility (RF-ITV) system. RF-ITV provides the military with instant access to information about equipment and supplies, enhancing readiness and safety.

Nearly 200 Unisys personnel are deployed worldwide in support of this RFID-based system, which spans more than 31 countries, two U.S. territories and 44 U.S. states. Unisys has installed RFID equipment in more than 1,700 sites worldwide in a wide variety of climates and environments.

Under the new RFID III contact, Unisys will be able to provide the DoD and other federal agencies with RFID technology as well as services. RFID III is the successor to the Army’s RFID II contract, awarded in January 2003, and represents a move within the U.S. Department of Defense towards a competitive approach to RFID technology procurements, based on international standards.

Currently, RFID tags are attached to approximately 125,000 shipments of military supplies each week. As shipments pass through field locations, fixed and handheld readers send and receive data to and from the tags. This data is made available to the military for greater visibility into the location and status of shipments.

“With RFID III, Unisys plans to assist the Department of Defense in moving from proprietary technology towards the international standard ISO 18000-7 for a more open RFID infrastructure,” said Jim Geiger, managing partner, Department of Defense, Unisys Federal Systems. “Unisys is very proud that DoD has selected Unisys as a partner in implementing these standards. The result will be a less expensive and more flexible and reliable path forward.”

Under the contract, Unisys will deploy RFID tags and readers of partner companies Hi-G-Tek and Identec Solutions. Hi-G-Tek and Identec Solutions’ products are compliant with ISO 18000-7, one of the most significant new RFID standards and have been tested in extreme physical conditions.

In November, Unisys announced that it supported the U.S. Customs and Border Protection in opening the first U.S. land border crossings using RFID technology to capture, read and analyze traveler and vehicle information. Unisys equipped these sites to process secure RFID-enabled travel documents which include U.S. passport cards and alternative documents.

Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialize in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. For more information, visit www.unisys.com.

Forward-looking Statements
Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. In particular, under multiple award contracts there is no guarantee that any contract recipient will be awarded any task order. Further, because agreements with government agencies are terminable before the end of their terms and are subject to the availability of appropriated funds there is no guarantee that any task orders will be awarded by the government or that any awarded task order will continue for its full term. Additional discussion of factors that could affect Unisys future results is contained in periodic filings with the Securities and Exchange Commission.