North Carolina Medicaid Protest

DALLAS, Jan. 12 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc., , a premier provider of business process and information technology outsourcing solutions, announced today that an administrative law judge has made a non-binding recommendation to sustain EDS Information Services' protest of the contract between ACS and the North Carolina Department of Health and Human Services (DHHS). Under the contract, awarded to ACS in April 2004, ACS is providing services to DHHS to replace EDS and operate the North Carolina Medicaid Management Information System. ACS had previously disclosed the protest on April 28, 2004. The non-binding recommendation was issued to the North Carolina State Chief Information Officer (CIO), Office of Technology Services, who will make the final decision on the protest after DHHS, ACS, and EDS have each had an opportunity to file exceptions and proposals and to present arguments to the CIO.

Prior to DHHS' award of the contract to ACS, ACS' proposal was reviewed and approved by the State of North Carolina's Information Technology Services group and the Federal Center for Medicare and Medicaid Services. In considering EDS' protest, DHHS had again reviewed ACS' proposal and determined that the ACS technical solution did, in fact, comply with all technical requirements and had denied EDS' protest on June 3, 2004. Notwithstanding these previous reviews, approvals, and decisions, the administrative law judge based his recommendation on his assessment that ACS' technical solution did not fully comply with the DHHS technical standards for proposals.

ACS intends to vigorously pursue affirmation of DHHS' contract award to ACS. DHHS has instructed ACS to continue performance of ACS' services under the contract.

ACS, a FORTUNE 500 company with more than 43,000 people supporting client operations in nearly 100 countries, provides business process and information technology outsourcing solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS". ACS makes technology work. Visit ACS on the Internet at http://www.acs-inc.com/ .

The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including the most recent Form 10-K. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

CONTACT: investor relations, Warren Edwards, Executive Vice President-Chief Financial Officer, +1-214-841-8082, or warren.edwards@acs-inc.com , ormedia, Lesley Pool, Senior Vice President-Chief Marketing Officer,+1-214-841-8028, or lesley.pool@acs-inc.com , both of Affiliated ComputerServices, Inc.

Web site: http://www.acs-inc.com/