Telstra Selects EDS for Major Outsourcing Contract for Billing and Shared Services

CONTACT:
Julie Leong, Kevin Chan
Edelman Public Relations Worldwide (HK) Ltd.
Tel:    + 852 2804 1338
Email: julie_leong@edelman.com.hk
      kevin_chan@edelman.com.hk

Wil Hokama
EDS
Tel: +852 2867 9888
Email: wil.hokama@eds.com

FOR RELEASE MARCH 1, 2001       INTERNATIONAL RELEASE
Telstra Selects EDS for Major Outsourcing Contract for Billing and Shared Services
Australia¡¦s largest telco set to reduce costs, increase speed-to-market, and improve delivery quality.
Melbourne, Australia ¡V Telstra, Australia¡¦s largest telecommunications company, has awarded EDS a major five-year contract worth approximately US $300 million (HK$2.32 billion), to provide software maintenance and development for its billing functions and shared services.
¡§This alignment with EDS will allow Telstra to significantly reduce IT costs through process efficiency, increase our speed-to-market for infrastructure and solutions that support customer initiatives, and improve quality of information and delivery,¡¨ Dwight King Telstra¡¦s managing director of business and wholesale, said. ¡§We are confident this relationship will contribute the long-term success of both companies.¡¨
EDS will provide all applications development and maintenance of billing and shared services.
¡§We are delighted to begin this new phase in our relationship with Telstra,¡¨ said George Newstrom, EDS Corporate Senior Vice President and President, Asia Pacific: ¡§The EDS team is dedicated to providing Telstra with worldclass service and innovative solutions. This agreement demonstrates our leadership in IT services and our ongoing commitment to the telecommunications sector in this region.¡¨
All Telstra employees in the scope of the contract were offered positions with EDS.
   EDS, the leading global services company, provides strategy, implementation and hosting for clients managing the business and technology complexities of the digital economy. EDS brings together the world¡¦s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers¡¦ trust and continuously seek improvement. EDS, with its management consulting subsidiary, A.T. Kearney, serves the world¡¦s leading companies and governments in 55 countries. EDS reported revenues of $19.2 billion in 2000. The company¡¦s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.

The statements in this news release regarding the value of the contract reported in this release 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, that could cause actual results to differ materially from such statements. Such risks and uncertainties include certain contingencies set forth in such contract as well as other risks and uncertainties described in EDS' most recent Form 10-Q. 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.