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Teradata Begins Investor Meetings on the Road to Becoming Independent


Management maintains previous operational guidance for full-year 2007 and provides long-term outlook for Teradata as stand-alone company

DAYTON, Ohio – Teradata, a division of NCR Corporation (NYSE: NCR), today announced that it is beginning to make presentations to the equity investment community in preparation for the planned Sept. 30, 2007 spin off of the Teradata data warehousing business from NCR. The meetings will be led by Mike Koehler, president and chief executive officer of Teradata Corporation (Teradata). Other members of the Teradata leadership team will also participate, including Steve Scheppmann, chief financial officer; Darryl McDonald, chief marketing officer, and Bob Young, vice president of financial planning and operations.

The Teradata road show presentation , which includes financial guidance for 2007 and longer-term objectives, is available on and on the NCR investor relations home page, Teradata management will discuss this financial guidance during the meetings with the investment community.

Financial Outlook

Assuming completion of its separation from NCR on Sept. 30, 2007, Teradata expects revenue growth for the year ending Dec. 31, 2007 of 7 to 9 percent from 2006 revenue of $1.560 billion. For the year ending Dec. 31, 2007, the company also expects operating margin, including pension expense and ongoing incremental costs associated with Teradata operating as an independent, publicly-traded company, of 20 to 21 percent. Assuming a 39 percent effective tax rate (1), earnings per share (EPS) is expected to be $1.12 to $1.17 per diluted share. This includes 4 cents per share of negative impact from the tax adjustment included in NCR’s 2007 second quarter results.

Teradata is also establishing long-term objectives of 7 to 9 percent revenue growth and 22 to 23 percent operating margin, including pension expense and the incremental costs associated with Teradata being an independent, publicly-traded company. Assuming a 30 percent effective tax rate, Teradata’s objective is to generate 14 to 18 percent EPS improvement per year over the longer-term. Specific guidance for 2008 will be provided at the beginning of the year.

“With organizations all over the world increasingly turning to enterprise data warehouse solutions to help drive their success, Teradata is well positioned to generate value for shareholders,” said Koehler. “As a global leader in enterprise data warehousing, including enterprise analytics technologies and services, we have the highest performing technologies, the most experienced people, a diversified and unmatched customer base and the financial strength to build for the future. We look forward to bringing our story to the investment community.”

On Aug. 28, 2007, NCR announced that its Board of Directors approved and set a record date and distribution date for the spin off of its Teradata data warehousing business. The Board also declared a dividend of one share of common stock of Teradata for each share of NCR common stock held. The distribution of Teradata common stock is expected to occur on Sunday, Sept. 30, 2007, by way of a pro rata stock dividend to NCR stockholders of record as of the close of business on Sept. 14, 2007, which is the record date for the distribution

(1) Teradata’s 2007 guidance uses a 39 percent effective tax rate which includes a two-percentage-point impact, or 4 cents per share, related to Teradata’s portion of the tax adjustment included in NCR’s 2007 second quarter results. Going forward, as a result of yet-to-be-implemented tax strategies and changes in the legal entity structure of Teradata Corporation, Teradata’s longer-term objective is to have an effective tax rate of approximately 30 percent.


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