EDS and Microsoft Form Alliance to Provide Enterprise Clients With Strategic End-to-End Solutions

PLANO, Texas, and REDMOND, Wash., July 21, 1999 — EDS and Microsoft Corp. today announced a strategic alliance to integrate the global service capabilities of EDS with Microsoft’s enterprise solutions platform, providing mutual clients worldwide with efficient and cost-effective end-to-end information technology solutions that enable them to improve performance and meet business goals.

In Europe and North America, EDS will apply its comprehensive life-cycle services to design, deploy, manage and support Microsoft® -based server and desktop infrastructure solutions, with immediate emphasis on Microsoft Windows NT® Server network operating system-based environments, terminal services solutions using Windows NT Server Terminal Server Edition, messaging and collaboration systems using Microsoft Exchange Server, and EDS’ Distributed Systems Management service offering. The companies also will work together in the global financial services industry, delivering a wide range of solutions – such as branch automation and credit union systems – using key Microsoft technologies, including the Windows® Distributed interNet Applications architecture for Financial Services (Windows DNAfs) framework.

To support these initiatives, EDS will expand its services offerings on Microsoft technologies, training and certifying as many as 7,000 consultants as either Microsoft Certified Systems Engineers (MCSEs) or Microsoft Certified Solution Developers (MCSDs). This training plan represents the single largest Microsoft certification commitment to date from any company worldwide.

“This is a rare opportunity to build upon the strengths of two global leaders in the information age, creating offerings that benefit EDS and Microsoft customers around the world,”
said Jeff Heller, president and chief operating officer of EDS.
“EDS’ relationship with Microsoft enhances our position as a major force in the enterprise application customer segment, furthering EDS’ tradition of technological leadership.”

Under the agreement, Microsoft will provide EDS with early access to Microsoft enterprise solutions platform software, enabling EDS to more rapidly develop integrated enterprise offerings for its customers. In addition, Microsoft will make various training opportunities on Microsoft enterprise products available to EDS. EDS will provide Microsoft with expertise on managing large-scale corporate computing infrastructures as the two companies develop new enterprise applications and provide new products or updates.

Relationship Focuses on Increasing Client Value

This collaboration builds on a 12-year relationship between Microsoft and EDS. Microsoft technologies already are used in a large percentage of EDS operations around the world, including Commonwealth Bank of Australia and BellSouth Telecommunications Corp.

“As one of the country’s largest financial institutions, Commonwealth Bank of Australia depends on technology to connect more than 90,000 points of representation and more than 20,000 banking professionals to meet the needs of our customers,”
said Russell Scrimshaw, Commonwealth Bank’s head of Technology, Operations and Property.
“EDS’ ability to closely integrate its extensive experience in enterprise solutions with the power of Microsoft software allows the Commonwealth Bank to simultaneously reduce the total cost of ownership for our IT systems and dramatically increase the value information technology adds to the bank’s overall business and customer strategies.”

“In this competitive customer segment, a robust communications capability is essential for an international communications company like BellSouth,”
said Larry Panatera, CIO of BellSouth.
“The ability to deliver high-quality services to our clients depends on our ability to share information and function as a global team. We felt that EDS’ expertise in deploying Microsoft Exchange offered the best long-term solution for our needs.”

In addition to serving a number of mutual clients, EDS and Microsoft have teamed to pursue new business opportunities. For example, the two companies currently are collaborating with six other business technology leaders on a proposal to unify into a single system all information and telecommunications technology used by San Diego County, Calif.

“This alliance with EDS extends our reach into the enterprise space,”
said Steve Ballmer, president of Microsoft.
“Our association will strengthen Microsoft’s enterprise solutions platform through EDS’ unsurpassed global services capability and strong client list, and most of all, a consulting work force that has built a legacy of leadership in the business. EDS and Microsoft are a great combination because we are both committed to helping enterprise customers reap dramatic business value from their technology investments.”

Microsoft’s enterprise solutions platform is a comprehensive, integrated set of products and technologies that enable organizations to develop secure, reliable and manageable solutions for running a business. Based on the Windows NT Server operating system, the Microsoft enterprise solutions platform comprises Internet solutions, development tools, Office desktop applications, and the Microsoft BackOffice® family of integrated server applications.

To enhance technical skill sets associated with the Microsoft platform, EDS already has internally standardized on Microsoft enterprise products. The company has deployed 74,000 Consistent Office Environment (COE) seats worldwide; this standardization includes
Windows NT Server, Office, Microsoft Internet Explorer browser software and Microsoft Exchange for global messaging and collaboration.

Collaboration to Shorten Enterprise Computing Time-to-Market

Microsoft will engage EDS in the early stages of product development and provide EDS with beta versions of products, allowing EDS to more rapidly build and deploy services, demonstrations, architectures and methodologies on emerging Microsoft platforms. In addition, Microsoft Consulting Services (MCS) and EDS will collaborate to develop solution frameworks, packaged consulting and support services focused on targeted customer initiatives. EDS also will team with the Microsoft Premier Support organization to assist customers when they need support.

Microsoft and its worldwide enterprise solution providers deliver a total solution: integrated platforms, powerful business applications and comprehensive global services that drive the success of the company’s enterprise customers. Large organizations can work directly with Microsoft or choose among the many highly qualified Microsoft enterprise solution providers to implement solutions based on the Microsoft enterprise solutions platform. Based on Microsoft best practices and supported by over 500,000 Microsoft Certified Professionals, Microsoft’s worldwide enterprise solutions benefit almost 14,000 customers in 55 countries, helping them realize significant business value and competitive advantage.

About EDS

EDS, a leader in the global information technology services industry for more than 35 years, delivers management consulting, electronic business solutions, and systems and technology expertise to improve the performance of more than 9,000 business and government clients in about 50 countries. EDS reported revenues of $16.9 billion in 1998. The company’s stock is traded on the New York Stock Exchange (NYSE
) and the London Stock Exchange. More information about EDS can be found on the Internet at http://www.eds.com/.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, Windows NT, Windows and BackOffice are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

a Note to editors: If you are interested in viewing additional information on EDS, please visit the EDS Web page at http://www.eds.com/ . If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.

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