EDS Awarded $73 Million Rhode Island Medicaid Contract

CRANSTON, R.I. and PLANO, Texas, April 11 /PRNewswire-FirstCall/ -- EDS today announced it has been awarded a $73 million, four-year contract plus two one-year options to continue processing health care provider claims and provide a variety of other Medicaid financial services to the state of Rhode Island.

The contract extends a 12-year relationship between EDS and the Rhode Island Department of Human Services (DHS). Last year, EDS processed more than 6.5 million health care claims, distributing nearly $1.3 billion in Medicaid benefits for more than 175,000 low-income Rhode Island residents. More than 4,000 health care providers participate in the Rhode Island Medicaid program.

“EDS has provided the state of Rhode Island with outstanding customer service, working with the state to deliver a strong health care system for those in need,” said Ronald Lebel, acting director of the Rhode Island Department of Human Services. “DHS and EDS look forward to continuing our relationship with the citizens and the health care providers of Rhode Island.”

Under the new contract in Rhode Island, EDS will continue to provide fiscal agent services for the state’s Medicaid Management Information System (MMIS), including claims processing, systems management, provider relations, data analysis, surveillance utilization review, drug utilization review, and premium billing and collection.

“We are pleased that the state of Rhode Island has extended our existing relationship, enabling EDS to continue to serve both providers and patients in the state,” said Jim Duffey, EDS vice president, Global Sales & Client Solutions - U.S. Government Services.

This award marks EDS’ second Medicaid contract award in 2005. In 2004 alone, five Medicaid contracts were open for recompete, with EDS successfully winning four out of the five bids.

Earlier this year, EDS was awarded a multi-year contract by Wisconsin to design, develop and implement a new state-of-the-art Medicaid Management Information System (MMIS). The agreement extends a 27-year relationship between EDS and the Wisconsin Department of Health and Family Services.

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 country. Within the Medicaid and Medicare environments alone, EDS touches more than 56 million lives and is the most experienced business process and claims administrator, with more than 35 years of experience. EDS processes more than 1 billion Medicaid claims annually, more than any other company, and is the fiscal agent for government healthcare in 16 U.S. states.

About EDS

EDS provides a broad portfolio of business and technology solutions to help its clients worldwide improve their business performance. EDS’ core portfolio consists of 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 95th 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-K. 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 703-742-1307 bill.ritz@eds.com

Electronic Data Systems Corporation

CONTACT: Bill Ritz of Electronic Data Systems Corporation,+1-703-742-1307, or bill.ritz@eds.com