3rd Quarter Results

Unisys Corporation
                  

  Unisys Expects Lower-Than-Anticipated Results for Third Quarter of
                                 2005


Unisys Corporation (NYSE:UIS) said today that, based on preliminary results for
the quarter, it expects to report a third-quarter 2005 loss of 7 - 9 cents per
share, excluding pension expense. This range includes the previously announced
2-cent per share charge related to a cash tender offer for its 8 1/8% notes due
2006. This compares to the company's previous guidance of earnings per share,
excluding pension expense and the charge related to the tender offer, of 4 - 6
cents per share.
On a U.S. GAAP basis, including pension expense and the cash tender offer
charge, the third-quarter 2005 net loss is expected to be between 16 and 18
cents per share.
Revenue for the third quarter of 2005 is expected to be in the $1.37 - $1.39
billion range, a decrease of approximately 4 - 5% from the prior-year quarter.
The company saw lower-than-expected results in both its services and technology
businesses.
The third-quarter 2005 results are preliminary, subject to the completion of
customary quarterly closing and review procedures.
'We are currently analyzing the reasons for the shortfall, and we will discuss
these, as well as the actions we are taking to drive improved results, at the
time of our quarterly earnings conference call,' said Unisys President and CEO
Joseph W. McGrath.
The company said it will release its third-quarter 2005 results on Tuesday,
October 18 before the opening of trading on the New York Stock Exchange.
Following the release on October 18, the company will hold a conference call
with the financial community from 8:15 - 9:15 a.m. Eastern Time to discuss the
results. The company will offer a live, listen-only Webcast of the conference
call via a link on the Unisys Investor Web site at www.unisys.com/investor. A
replay of the Webcast will be available on the Unisys Investor Web site shortly
following the conference call.

Forward-Looking Statements

Any statements contained 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 projections of earnings, revenues, contract values or other financial items;
any statements of the company's plans, strategies or objectives for future
operations; statements regarding future economic conditions or performance; 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. Risks and uncertainties
that could affect the company's future results include general economic and
business conditions; the effects of aggressive competition in the information
services and technology markets on the company's revenues, pricing and margins
and on the competitiveness of its product and services offerings; the level of
demand for the company's products and services and the company's ability to
anticipate and respond to changes in technology and customer preferences; the
company's ability to grow outsourcing and infrastructure services and its
ability to effectively and timely complete the related solutions
implementations, client transitions to the new environment and work force and
facilities rationalizations; the company's ability to effectively address its
challenging outsourcing operations through negotiations or operationally and to
fully recover the associated outsourcing assets; the company's ability to drive
profitable growth in consulting and systems integration; the level of demand for
the company's high-end enterprise servers; the company's ability to maintain
tight cost controls; the risks of doing business internationally and the
potential for infringement claims to be asserted against the company or its
clients. Additional discussion of these and other 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.

About Unisys

Unisys is a worldwide information technology services and solutions company. Our
people combine expertise in consulting, systems integration, outsourcing,
infrastructure and server technology with precision thinking and relentless
execution to help clients in more than 100 countries quickly and efficiently
achieve competitive advantage. For more information, visit www.unisys.com.

RELEASE NO.: 1010/8582

http://www.unisys.com/about__unisys/news_a_events/10108582.htm

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.


    CONTACT: Unisys Corporation
             Media Contacts:       
             Guy Esnouf, 215-986-6583
             [e-mail]
                 or
             Jacqueline Lewis, 215-986-5204
             [e-mail]
                 or
             Investor Contact: 
             Jim Kerr, 215-986-5795
             [e-mail]