Computer Sciences Corporation Signs Five-Year, $74 Million Outsourcing Contract Renewal With Gateway Health Plan

EL SEGUNDO, Calif., March 7 /PRNewswire-FirstCall/ -- Computer Sciences Corporation today announced that Gateway Health Plan has extended its healthcare business process outsourcing (BPO) agreement with CSC through March 2010. The five-year extension, which CSC values at approximately $74 million, allows Gateway to continue concentrating on core tasks such as medical management and healthcare provider network development.

Pittsburgh-based Gateway first outsourced the processing of its managed Medicaid claims to CSC in 1996. Since then, CSC has helped Gateway reduce its administrative costs to less than eight percent of overall expenses and maintain that level as the company more than tripled its membership. Currently, CSC processes more than three million health claims annually for the Medicaid health management organization (HMO).

"CSC has helped Gateway achieve a number of important business objectives, including substantial membership growth, better focus on care management and network expansion, and quick response to changing regulatory requirements," said Mike Blackwood, Gateway Health Plan chief executive officer. "CSC has definitely earned our trust."

CSC's BPO services for Gateway include claims administration, physician information management, check processing and bulk mailing. CSC provides the software, technology infrastructure and internal support services for Gateway's healthcare administration information system. Gateway's staff uses CSC's hosted software to perform membership enrollment, medical utilization management, case management and other administrative functions. Gateway's network healthcare providers use Web portal technology that includes CSC's ePower application to perform claim status inquiries, eligibility verification and other functions online in real time.

"This contract extension proves once again that CSC can help clients experience real results, such as growing market share, while controlling costs," said Steve Sabino, vice president of CSC's Health Plan Solutions organization. "Helping Gateway concentrate on its core competencies has ultimately improved the quality of healthcare for the people of Pennsylvania."

CSC has more than 25 years of experience in serving commercial and government health payers and providers, processing more than 100 million health claims annually in its BPO centers. CSC's administrative staff uses the company's proprietary health plan administration software, including advanced workflow and claims adjudication technology. CSC healthcare BPO clients report increased efficiency and consistency in many areas, including claims turnaround, claims accuracy and overall improvement in their administrative cost ratio.

About Gateway Health

Established in 1992, Gateway Health Plan is a Medicaid HMO serving the Medical Assistance population in Pennsylvania as a managed care alternative to the Department of Public Welfare's Medical Assistance Program. Gateway Health Plan's business structure is a Limited Partnership between Highmark Blue Cross/Blue Shield and Mercy Health Plan. Its more than 262,000 members have access to almost 7,300 physicians and 111 hospitals, in addition to a network of pharmacies, home healthcare agencies and other related health services. Gateway was the first Medicaid HMO to receive and then repeat its National Committee for Quality Assurance (NCQA) Excellent accreditation. For more information visit the company's Web site at http://www.gatewayhealthplan.com/.

About CSC

Founded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 79,000 employees supporting continuing operations, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $13.9 billion from continuing operations for the 12 months ended Dec. 31, 2004. For more information, visit the company's Web site at http://www.csc.com/.

Computer Sciences Corporation

CONTACT: Jackie VanErp, Vice President, Marketing, Financial ServicesGroup, +1-512-275-5844, jvanerp@csc.com, or Janet Herin, Media Relations,Corporate, +1-310-615-1693, jherin@csc.com, or Bill Lackey, Director, InvestorRelations, Corporate, +1-310-615-1700, blackey3@csc.com, all of ComputerSciences Corporation