EDS Awarded Seven-Year, $48 Million Massachusetts Medicaid Contract

BOSTON, June 15 /PRNewswire-FirstCall/ -- EDS , the nation’s leader in providing Medicaid services, has been awarded a $48 million, seven-year contract to design, develop, implement and maintain a new state-of-the-art Medicaid Management Information System (MMIS) for the Commonwealth of Massachusetts. The contract may be extended up to four additional years.

EDS will build on its successful federally certified interChange Medicaid system currently operating in several states, including Kansas, Oklahoma and Pennsylvania, modifying the application to reflect the program and technology requirements of Massachusetts.

Once implemented, the “NewMMIS,” as it will be called, will provide the core technology platform for Medicaid and a number of other human services programs statewide.

MassHealth, the Massachusetts Medicaid program, provides health care benefits to nearly 1 million people across the Commonwealth through approximately 27,000 providers.

Under the contract, EDS will replace the current state-operated Medicaid system with a new J2EE Web-based application constructed to utilize the Commonwealth’s shared infrastructure. This infrastructure will include shared services such as enterprise identity management and electronic payments. The NewMMIS will support the consolidation of health records, permit the efficient implementation of new program controls and provide flexibility to create new programs.

“The Commonwealth should be commended for its bold and visionary approach in developing a new Medicaid system,” said Jim Duffey, EDS vice president, Global Sales & Client Solutions -- U.S. Government Accounts. “NewMMIS will serve as the cornerstone of Medicaid innovation and effectiveness for health care providers and taxpayers of Massachusetts for years to come.”

The Massachusetts MMIS win is EDS’ second major Medicaid award in the Bay State in 2005. In April, EDS was awarded a $24 million contract by MAXIMUS to assist in integrating Medicaid member and provider services into a single customer services model.

Earlier this year, EDS won multi-year Medicaid contracts in Wisconsin and Rhode Island.

The design of the NewMMIS is consistent with Centers for Medicare and Medicaid Services (CMS) Medicaid Information Technology Architecture (MITA) framework.

EDS is the nation’s largest provider of Medicaid and Medicare process management services, administering more than $100 billion in benefits a year. Within the Medicaid and Medicare environments, EDS touches more than 56 million lives and is the most experienced claims administrator, with almost 40 years of experience. EDS processes more than 1 billion Medicaid claims annually, more than any other company, and is the fiscal agent for 18 states.

About EDS

EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. With $20.7 billion in 2004 revenue, EDS is ranked 95th on the Fortune 500. 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 EDS, +1-703-742-1307, or bill.ritz@eds.com