EDS Awarded $33.2 Million Contract to Create Comprehensive Tax System for Kentucky

HERNDON, Va., Sept. 6 /PRNewswire-FirstCall/ -- EDS has been awarded a three-year contract to develop the Kentucky Comprehensive Tax System that will automate the Commonwealth's tax administration and collections functions for the Commonwealth of Kentucky's Department of Revenue, Finance and Administration Cabinet. The contract is valued at $33.2 million if two additional option years are exercised.

The Comprehensive Tax System developed by EDS will improve Kentucky's tax administration and enable taxpayers to update their personal data and file returns and other documents online. The system will meet federal security guidelines and provide double-entry accounting capability.

"We are proud to serve the Commonwealth of Kentucky through a state-of-the-art tax system that will streamline and improve Kentucky's tax administration functions," said Dennis Stolkey, vice president and general manager, EDS U.S. Public Sector. "The new system will help Kentucky to quickly react to policy changes and better serve its taxpayers."

The pact with Kentucky builds upon EDS' experience serving tax and revenue agencies around the world, including the British Columbia Ministry of Small Business and Revenue, the United Kingdom's Inland Revenue Service, New Zealand Inland Revenue and the Australian Tax Office.

"This is an excellent opportunity for EDS to leverage our extensive tax and revenue experience to serve the Commonwealth of Kentucky," said Sue Arthur, vice president, EDS State and Local Government.

EDS will utilize tax software from Oracle, one of EDS' Agility Alliance partners, to develop the Comprehensive Tax System. CGI Group Inc. and Exstream Software Inc. also will work with EDS on the project.

EDS has provided fiscal agent and IT services for Kentucky's Medicaid program since 2005.

About EDS

EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry 45 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. 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: Brad Bass - EDS 703 733 3193 brad.bass@eds.com