EDS Wins Seven-Year, $73 Million Oregon Medicaid Contract

SALEM, Ore., July 11 /PRNewswire-FirstCall/ -- EDS , the nation's leading provider of Medicaid services, has been awarded a $73 million contract to design, develop, implement and maintain a new state-of-the-art Medicaid Management Information System (MMIS) for the state of Oregon. The seven-year, three-month-contract includes three one-year options.

In the fourth Medicaid win this year for EDS, Oregon turned to EDS to replace the state's current MMIS -- a 30-year old legacy system -- to keep pace with the changing needs of today's Medicaid program, providers and clients.

Earlier this year, EDS was awarded multi-year Medicaid contracts by Wisconsin, Rhode Island and Massachusetts.

The Oregon MMIS will be based on EDS' highly successful, federally certified interChange Medicaid system currently operating in several states, including Kansas, Oklahoma and Pennsylvania, modified to meet Oregon's specific functional and technical needs.

EDS is responsible for the design, development, implementation and maintenance of the MMIS. The design is consistent with Medicaid Information Technology Architecture framework of the Centers for Medicare and Medicaid Services.

The Oregon Medicaid program provides health care benefits to about 600,000 people annually across the state through 31,000 providers. The state processes more than 26 million Medicaid transactions per year.

"We look forward to having better information at our fingertips to monitor the effectiveness of the Medicaid program and the new EDS system will do just that," said Bryan Johnston, interim director of the Oregon Department of Human Services (DHS). "This system will help providers to determine eligibility, receive service authorization, submit claims, receive payments, and deliver improved care to the citizens of Oregon."

Under the contract, EDS will also: * Provide Medicaid pharmacy benefit management services to support drug claim processing, utilization management and the state's drug rebate program as well as providing pharmacy expertise and help desk and auditing services. * Implement a new Decision Support Surveillance Utilization Review Subsystem to help the state create additional accountability of program expenditures and payments. * Work with DHS to ensure compliance with the Health Insurance Portability and Accountability Act rules for privacy, security and National Provider Identifier.

"EDS is looking forward to supporting Oregon's Medicaid program," said Jim Duffey, EDS Vice President, Global Sales & Client Solutions - U.S. Government Accounts. "The new MMIS will provide the state with a flexible and adaptable information technology infrastructure that meets the state's future program policies and goals."

EDS is the nation's largest provider of Medicaid and Medicare process management services, administering more than $100 billion in benefits a year. Within the Medicaid and Medicare environments alone, EDS touches more than 56 million lives and is the most experienced claims administrator, with almost 40 years of experience. EDS processes more than 1 billion Medicaid claims annually, more than any other company, and manages Medicaid programs in 19 states.

About EDS

EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 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. With $20.7 billion in 2004 revenue, EDS is ranked 95th on the Fortune 500. 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-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.

CONTACT: Bill Ritz - EDS 703-742-1307 bill.ritz@eds.com