NEC and Unisys Sign Alliance Agreements

Strategic global collaboration focuses on server innovation, software development, support services and solution integration to support secure business operations

BLUE BELL, Pa., March 7, 2006 – Unisys Corporation (NYSE: UIS) today announced that Unisys and NEC have signed a series of alliance agreements to collaborate in server technology, research and development, manufacturing and solutions delivery.  The agreements implement the alliance that was first announced on October 25, 2005.
      
The alliance covers the following areas:

• Hardware – NEC and Unisys will co-design and develop a common high-end Intel-based server platform to provide customers of each company with increasingly powerful, scalable and cost-effective servers. This research and development collaboration should enable both companies to take better advantage of the growing market for Intel-based servers. The common platform products are to be used as the basic platform for each party’s server offerings. NEC will manufacture the common platform products for both companies and it is targeting late 2007 for the release of the first platform. The design collaboration and manufacturing arrangements are intended to reduce product costs.
• Middleware/Software – The two companies will license selected Windows- and Linux-based middleware technologies from each other, as well as work to develop new middleware focused on maximizing application and systems management efficiency.
• Security Products and Solutions – The companies are looking to integrate existing biometric technologies from NEC into the Unisys Registry and Positive Identification Solutions framework. They also plan to examine the further use of biometrics in personal identification, RFID, border control, and video surveillance solutions with the objective of bringing them to market.
• Telecommunications Solutions – NEC and Unisys plan to collaborate on Internet-based services built with next generation network and application technology such as an IP Multimedia Subsystem (IMS). This collaboration is targeted at identifying and building solutions that will work in a converged telecommunication environment.
• Regional Opportunities – NEC and Unisys expect their collaboration to lead to joint bidding opportunities to advance their respective businesses as they engage a broad spectrum of customers in countries such as the United States and Greater China, as well as other growth markets. 
• Maintenance and Support Services – NEC is recognizing Unisys as its preferred provider of technology support and maintenance services and also managed security services in markets outside Japan. This relationship is intended to leverage Unisys capabilities and coverage by offering Unisys the opportunity to bid these services in support of NEC’s service offerings to its customers.

In order to manage progress under the alliance, both companies have set up dedicated program offices. The Unisys program office will be headed by a newly hired executive, Noriko Kunimi, who joins Unisys as vice president of the NEC alliance and brings many years of alliance management and business development consulting experience. The hardware contract is for an initial seven-year period with renewals after that; the middleware agreement runs for three years with successive one-year renewals. The other contracts mostly apply for two years, with two-year extensions thereafter.

Forward-Looking Statements
Any statements in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, any statements of the company’s plans, strategies or objectives and any statements of belief or expectation. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. In particular, statements in this release regarding the anticipated benefits of the arrangement between the parties assume that the company and NEC will timely, successfully, and effectively implement their planned actions. The companies’ ability to achieve the anticipated benefits is also subject to market acceptance for the products and services being offered, as well the companies offering those products and services at competitive prices. A discussion of additional factors that could affect Unisys future results is contained in its periodic filings with the Securities and Exchange Commission. Unisys assumes no obligation to update any forward-looking statements.

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RELEASE NO.: 0306/8630
Unisys is a registered trademark of Unisys Corporation. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.

Contacts

Media Contacts:
Guy Esnouf, Unisys, 610-648-2643
guy.esnouf@unisys.com

Gail Ferrari Marold, Unisys, 919-342-5376
gail.ferrari@unisys.com

Investor Contact:
Jim Kerr, Unisys, 215-986-5795
jim.kerr@unisys.com