EDS Wins New Seven-Year $189.1 Million Wisconsin Medicaid Contract

MADISON, Wis., Feb. 28 /PRNewswire-FirstCall/ -- EDS , the global leader in providing healthcare support to U.S. state governments, has been awarded a seven-year, $189.1 million contract to design, develop and implement a new state-of-the-art Medicaid Management Information System (MMIS) for the state of Wisconsin. The contract also includes five one-year options.

The contract extends a 27-year relationship between EDS and the Wisconsin Department of Health and Family Services (DHFS), the state agency responsible for providing health care to Wisconsin's poorest and most vulnerable citizens. Since 1977, EDS has provided fiscal agent support for DHFS and operated its existing mainframe MMIS. Last year, EDS processed more than 32 million claims worth more than $4.2 billion from more than 42,000 health care professionals in Wisconsin.

"EDS was awarded the contract after a highly competitive procurement that will result in significant cost reductions and service improvements for the Wisconsin Medicaid program," said Helene Nelson, secretary of the Department of Health and Family Services, the state agency responsible for administering Wisconsin's Medicaid programs. "EDS has been a reliable and effective business partner for the state of Wisconsin and we look forward to building upon this relationship. Wisconsin is very excited about the next generation technology EDS will deliver under the new contract."

The new contract calls for a two-year development and implementation period followed by a five-year management term. EDS will implement its award- winning interChange Health System.

In addition to supporting the new MMIS, EDS will continue to operate the state's Decision Support System/Data Warehouse; Wisconsin Immunization Registry; Encounter Data System; and Lien, Estate and Affidavit Processor work flow system.

"We are honored by the state's trust in extending our existing relationship, enabling EDS to continue to serve health care providers, patients and taxpayers in Wisconsin," said Jim Duffey, EDS vice president, Global Sales and Client Solutions - U.S. Government. "Our relationship with Wisconsin has been nationally recognized as a role model for outsourcing arrangements."

Since the initial contract award in 1977, EDS and the state have been honored with several awards of excellence, including the Editor's Choice Award from Outsourcing Journal and a citation from Financial World Magazine commending Wisconsin on having the best Medicaid program in the nation.

Several years ago, EDS and the Department of Health and Family Services jointly created a statewide immunization registry to help prevent childhood diseases, which now contains more than five million immunization records. The acclaimed program has been adopted by several states and is being studied by a number of others.

Healthcare a hallmark of EDS service excellence

EDS is the nation's largest provider of Medicaid and Medicare process management services, administering more than $100 billion in benefits each year throughout the U.S. Within the Medicaid and Medicare environments alone, EDS touches more than 56 million lives and is the most experienced claims administrator, with more than 35 years of experience. EDS processes more than one billion Medicaid claims annually, more than any other company. In 2004 alone, five Medicaid contracts were open for recompete, with EDS successfully winning four out of the five bids.

About EDS

EDS provides a broad portfolio of business and technology solutions to help its clients worldwide improve their business performance. EDS' core portfolio comprises information-technology, applications and business process services, as well as information-technology transformation services. EDS' A.T. Kearney subsidiary is one of the world's leading high-value management consultancies. With more than $20 billion in annual revenue, EDS is ranked 87th on the Fortune 500. The company's stock is traded on the New York and London stock exchanges. Learn more at http://www.eds.com/ .

The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward- looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Bill Ritz - EDS 202-637-6757 bill.ritz@eds.com

Electronic Data Systems Corporation

CONTACT: Bill Ritz of Electronic Data Systems Corporation,+1-202-637-6757, or bill.ritz@eds.com

Web site: http://www.eds.com/