UNISYS TO FORM THREE DISTINCT BUSINESSES AND DISMANTLE MATRIX MANAGEMENT
STRUCTURE

BLUE BELL, PA, OCTOBER 6, 1995 -- In a move expected to significantly
step-up profit and revenue growth next year, James A. Unruh, chairman and
chief executive officer of Unisys Corporation, said today that Unisys will
form three distinct businesses, each with its own sales force, and will
dismantle its highly interdependent matrix management structure. He said
these actions "were a defining transition point" in the company's
transformation. They will allow the businesses to compete more effectively
and react more quickly and more fully to the growth opportunities
available to each. At the same time, he said this greater focus in each
business will strengthen the company's ability to provide a coordinated
services and product approach to a client's information management needs.

Unruh said, "We have progressed in a transformation started in 1991 from a
mature traditional mainframe company to where approximately 40% of our
business is growing in double digits annually. We have reached a stage
where our growth segments have a critical mass and momentum. This is a
time to unleash the full potential of the company -- and a strategy that
is working -- by focusing our businesses in ways not possible before to
gain significant market penetration and cost benefits."

Unruh said the current Unisys matrix structure will be replaced with the
streamlined decision processes, accountability and dedicated resources
characteristic of stand-alone businesses. "We will be faster and more
aggressive in executing our strategy of providing technology, applying
technology and servicing technology in focused markets."

Unruh said the three businesses are "computer systems;" "information
consulting and integration services;" and "global support services." The
first is a hardware/software products business and the other two are
services driven. Each has unique characteristics and must organize and
operate to be competitive with its peers in its market segments. Based on
total 1994 revenue of approximately $6 billion, products and services each
accounted for approximately $3 billion.

INFORMATION SERVICES

The new "information consulting and integration services" business has been
growing at more than 20% annually. Unruh said that starting in 1992, a
world-class consulting, vertical solutions, systems integration and
outsourcing business has been put in place in record time. Its charter has
been to help clients apply information technology to gain a competitive
edge and better serve their clients. "We have passed through the start-up
phase which involved considerable effort in putting people and processes
in place while growing the business," Unruh said. "We now will fine tune
operations, significantly increase our vertical industry solutions
expertise, and focus very aggressively in competing with the best of our
peers." A president for the business, which is now run by Unruh, is
expected to be named before the end of the year.

GLOBAL SUPPORT SERVICES

Unruh said the "global support services" business will be headed by Unisys
corporate vice president G. A. Gagliardi. "We will significantly expand on
what has been a major accomplishment in this area over the past five
years," Unruh said. At a time when traditional maintenance revenue is
declining because of increased reliability, Unisys has leveraged its
worldwide support infrastructure to address new growth opportunities in
desktop services, network integration and multivendor support. Total
revenue for "global support services" has begun to increase from a low in
1993. The traditional maintenance piece of this business has dropped from
more than 80% of revenue in 1990 to approximately 65% in 1994, and is
expected to be less than 30% in 1998. Desktop services, network
integration and related services have been growing at more than 20%
annually since 1993. "We see continued opportunities in these areas,"
Unruh said.

COMPUTER SYSTEMS

Unruh said Unisys executive vice president Alan Lutz will head the
"computer systems" business. It will combine development and manufacturing
operations with a full-fledged hardware and software marketing and sales
organization. "Our traditional computer business provided much of the
resource and stability that allowed our service initiatives to develop and
grow," Unruh said. "These businesses no longer need the considerable
overhead and infrastructure that the computer systems business carried on
their behalf. Eliminating these costs will enhance the performance of our
traditional business. We will unleash the potential of our technology
resources by pursuing new opportunities that we will develop in the Unisys
base and among new customers."

Unruh said today's announcement follows an extensive top-to-bottom review
of operations and has the full support of the company's Board of
Directors.

Unruh said he is chairing an implementation committee and that a transition
team of senior executives will finalize the new structure by year end. The
company said its Federal Systems division selling computer systems and
services to the U.S. federal government is not affected by the change. It
continues to run as a stand-alone unit reporting to the CEO.

COST REDUCTION GOAL

Unruh said that in an industry that will continue to require aggressive
cost reduction, the company's goal from realignment of Unisys businesses
is to trim at least $400 million from the company's current cost structure
by the end of 1996. Savings will come from reducing the infrastructure
overhead and administrative costs associated with the previous highly
interdependent matrix structure, facility consolidation, personnel
reductions and the elimination of low-return programs.

While the company expects that in achieving this goal its worldwide
workforce will be reduced by a number yet to be determined, reduction
activities will be partially offset by an increase in investment in its
growth businesses. A significant charge against earnings will be taken in
fourth quarter 1995 in connection with this initiative.

Unruh said that with greater organizational flexibility comes significant
new options to redeploy assets and maximize the potential of the core
businesses. Those options might include complementary acquisitions,
selective divestitures, new partnerships and other alliances that can
enhance revenue growth and strengthen core competencies.

"It is clear there is no let-up in the fundamental change in our industry,
nor do I expect one," Unruh said. "We firmly believe the transformation we
have undertaken remains achievable over time without a shift in strategy.
That implementation has not been without some tough but instructive
lessons and we recognize that actions must be taken decisively and
adjusted where necessary. We are determined to restore strict cost
discipline and change the necessary skill sets needed to achieve our
goals.

"But I believe today's announcement is the end of one phase of our
transformation and the beginning of a breakthrough that will drive
profitable revenue growth. Our mission has not changed. We will help
business and government use information as an asset to achieve competitive
advantage and better serve their clients. As we do, our principal
businesses -- providing, applying and servicing technology -- will be
better positioned to help our clients. We expect to see visible
operational and financial progress in 1996," Unruh said.

UNISYS -- THE INFORMATION MANAGEMENT COMPANY

As an information management company, Unisys acts as a solutions and
systems integrator for business and government, complementing those
integration skills with a full range of consulting and implementation
services, information technology and vertical industry expertise. The
company's perspective extends beyond supplying technology to delivering
comprehensive information management solutions.
 
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