1st Quarter Results

Unisys Corp
24 May 2000


Media Contact:        Jay Grossman, Unisys, 215-986-6948
                      [e-mail]

Investor Contact:     Jim Kerr, Unisys, 215-986-5795
                      [e-mail]

Unisys Reports Higher Earnings Per Share on Lower Revenue for

First-Quarter 2000

BLUE BELL, PA, APRIL 13, 2000 - Unisys Corporation (NYSE: UIS) today reported
first-quarter 2000 net income of $106.5 million, or 34 cents per diluted common
share, compared to first-quarter 1999 net income or $109.9 million, or 31 cents
per diluted common share after payment of preferred dividends. As indicated in
the company's April 4 announcement that its first-quarter revenue would be
negatively impacted by a slower-than-anticipated rebound in sales following the
Year 2000 transition and by the implementation of a new organizational model,
Unisys said its revenue in the quarter declined 8% to $1.67 billion from $1.82
billion in the year-ago period. Without the negative impact of foreign currency
translation, revenue in the quarter declined 6% from a year ago.


Comments from Chairman and CEO Larry Weinbach

'As we announced last week the new year got off to a slower-than-expected start
due to the Y2K transition and the impact of organizational changes involved in
implementing our new integrated go-to-market model' said Unisys Chairman and
Chief Executive Officer Lawrence A. Weinbach. 'While this impacted our operating
income and margins in the quarter, we were able to increase our earnings per
share through fight cost controls, reduced interest expense, and the elimination
of preferred stock dividends. Effective April 15 we will take the next major
step in our debt reduction program by retiring, through a combination of cash
and short-term borrowings, the remaining $399.5 million of our 12% notes. This
action will bring our long-term debt down to less than $600 million and further
reduce our annual interest expense. As previously announced, we will take an
after-tax extraordinary charge of about $20 million, or 6 cents per share, in
the second quarter related to this early retirement of debt.


'With the Y2K transition behind them, our clients are turning their attention 
to significant new IT projects, particularly in the area of e-business,'
Weinbach said. 'We saw a pickup in server sales late in the quarter, which
resulted in a lower-than-expected revenue, decline in our technology business
during the quarter. At the end of March we began customer shipments of our new
ES7000 servers, based on the revolutionary Cellular MultiProcessing (CMP) 
architecture, and are seeing strong interest in these servers in the market. In
our services business, we saw a significant increase in proposal activity for
major systems integration and outsourcing contracts in the first quarter over  a
year ago. We look for this activity to yield stronger order and revenue trends
over the course of the year.'

Overall Company Highlights 

Unisys reported that U.S. revenue showed double-digit declines in the first 
quarter compared to the year-ago period, with particular weakness in the Federal
government business. Revenue in international markets was essentially flat in
the quarter as strong growth in Asia, Japan, and Latin America was offset by
declines in  Europe/Africa and South Pacific. On a constant currency basis,
international revenue  showed modest gains in the quarter.

Total worldwide orders showed double-digit declines in the first quarter
versus a year ago. On a geographic basis, substantial order gains in Latin 
America and Japan were more than offset by declines in the United States,  
Europe/Africa and Pacific-Asia. Technology orders declined compared to a year 
ago. While services orders showed double-digit declines, reflecting the reduced
business activity in the quarter, proposal activity in the services business was
up sharply in the first quarter over the year-ago period. 

Unisys said its profit margins in the quarter reflected a lower mix of ClearPath
software and server content compared to the year-ago period, as well as reduced
utilization of resources in its services business due to the lower-than-expected
revenue levels. Gross margins declined to 32.3% and operating profit margins
declined to 10.5% against very strong margin levels in the year-ago quarter,
which benefited from accelerated shipments of ClearPath severs
as customers prepared for the Y2K transition.

The company's selling, general, and administrative expenses in the first
quarter declined to 16.9% of revenue from 18.4% of revenue in the year-ago
quarter. Unisys said the expense improvement reflected continued progress in
controlling costs through its worldwide business process standardization
program, tight control over discretionary spending, and an insurance cost
reimbursement in the quarter.

Unisys said that Other Income/Expense, which varies from quarter to quarter, in
the year-ago period included sizeable charges for various litigation matters.

Business Segment Highlights

Customer revenue in the company's services business declined 6% in the      
first quarter versus the year-ago period. Continued strong growth in outsourcing
services was more than offset by a decline in systems integration and repeatable
solutions, particularly in the company's government and financial services
businesses, as customers slowed the implementation of new solutions during the
Y2K transition. Proprietary maintenance revenue, which continues to decline
industry-wide, also declined double digits in the quarter as customers replaced
older equipment with newer Y2K-compliant systems that require less maintenance.
Gross profit margins in the services business decreased 3 percentage points to
21.1% while operating margins decreased 4 percentage points to 1.7%. The lower
services margin levels reflected reduced utilization of resources due to lower
revenue levels, as well as a lower mix of higher-margin systems integration,
solutions, and proprietary maintenance revenue in the quarter.

In the technology business, customer revenue declined 12% in the first     
quarter against strong revenue levels in the year-ago quarter, which      
reflected accelerated spending by customers in preparation for the Y2K       
transition. Gross margins in the technology business declined 7 percentage
points to 46.3% and operating margins declined 5 percentage points to 21.8%
against strong margin levels a year ago. 

Cash flow and Balance Sheet Highlights

Unisys used $43 million of operating cash in the first quarter compared to     
cash generated of $49 million in the year-ago period. The company said the
change in operational cash compared to a year ago primarily reflected a higher
percentage of sales late in the quarter. Unisys ended the first quarter with
$397 million of cash on hand.

On March 6, Unisys called all $399.5 million outstanding of its 12% notes due in
2003. The notes were called at 106% of par, requiring a cash payment of $424
million at redemption on April 15. The company said it expects to fund this
redemption through a combination of cash and short-term borrowings.

Business Outlook

'With the first quarter behind us, we go forward fundamentally well-positioned
to benefit from the changes we have made to our organizational approach, our
portfolio of services and technologies, and our financial structure,' Weinbach
said. 'Our new sales and delivery team are in place and presenting to clients,
for the first time in years, the full suite of Unisys capabilities. In our
technology business, server demand is rebounding and we are seeing strong market
interest in our new CMP-based servers. In our services business, proposal
activity has picked up, and while it takes some time for customer proposal
activity to result in orders and revenue, we look for services growth to resume
later in the year as e-business projects move from strategy to implementation
stages. On the bottom line, we continue to reduce debt and interest expense and
keep a tight rein on expenses. As we focus on execution and benefit from
improved sales productivity, we look for sequentially improving results through
2000, with revenue down slightly in the second quarter and budding to
double-digit revenue growth in the second half of the year.'

About Unisys

Unisys is an electronic business solutions company whose 36,000 employees help
customers in 100 countries apply information technology to seize opportunities
and overcome challenges of the Internet economy. Unisys people integrate and
deliver the solutions, services, platforms and network infrastructure required
by business and government to transform their organizations for success in this
new era. The company offers a rich portfolio of Unisys e-@ction Solutions for
electronic business based on its expertise in 'repeatable' vertical industry
solutions, network services, outsourcing, systems integration and multivendor
support, coupled with enterprise-class saver and related technologies. The
primary vertical mark Unisys serves worldwide include financial services,
transportation, communications, publishing and commercial sectors, as well     
as the public sector, including federal government customers. Unisys is       
headquartered in Blue Bell, Pennsylvania, in the Greater Philadelphia      
area. For more information on the company, access the Unisys home page on the
World Wide Web at www.unisys.com. Investor information can be found at
www.unisys.com/investor.

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. All forward-looking statements are subject to various, risks
and uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect the company's future financial
results are discussed more fully in the company's 1999 Form 10-K filed with the
Securities and Exchange Commission.

(See accompanying financial information)
http://www.unisys.com/news/releases/2000/apr/04136899.asp

Unisys is a registered trademark and e-@ction is a trademark of Unisys
Corporation.  All other brands and products referenced herein are acknowledged
to be trademarks or registered trademarks of their respective holders.


                           UNISYS CORPORATION
                     CONSOLIDATED STATEMENT OF INCOME
                     (Millions, except per share data)
                                       Three Months
                                       Ended March 31
                                    
                                        2000   1999

       Revenue                     $1,668.7 $1,822.8

       Costs and expenses
        Cost of revenue             1,129.4  1,154.2
        Selling, general and                   
         administrative               281.5    334.9
        Research and development       82.1     80.5
                                    
                                    1,493.0  1,569.6

       Operating income               175.7    253.2

       Interest expense                20.5     34.2
       Other income
       (expense), net                   6.2    (49.3)
                                   
       Income before income taxes     161.4    169.7
       Estimated income taxes          54.9     59.8
                                    
       Net income                     106.5    109.9
       Dividends on preferred
        shares                            -     22.8

       Earnings on common shares     $106.5    $87.1
       Earnings per common share
       Basic                          $ .34    $ .33

       Diluted                          .34    $ .31

       Shares used in the per share
        computations (thousands):
        Basic                       311,161  262,704
        Diluted                     317,080  277,830



                           UNISYS CORPORATION
                          SUPPLEMENTAL SUMMARY
                             (Millions)
                                        Elimi-
                                Total   nations   Services Technology

                         

       Three Months Ended
       March 31, 2000
     
       Customer revenue       $1,668.7            $1,125.0   $543.7
       Intersegment                     ($124.1)      11.0    113.1
                               
       Total revenue          $1,668.7  ($124.1)  $1,136.0   $656.8

       Gross profit percent       32.3%               21.1%    46.3%

       Operating income                              
        percent                   10.5%                1.7%    21.8%
       
       Three months Ended
       March 31, 1999
       
       Customer revenue       $1,822.8            $1,202.7    $620.1
       Intersegment                     ($109.1)      14.6      94.5
                                   
       Total revenue          $1,822.8  ($109.1)  $1,217.3    $714.6

       Gross profit percent       36.7%               24.3%     53.3%

       Operating income           13.9%                5.7%     26.8%
        percent



                          UNISYS CORPORATION
                        CONSOLIDATED BALANCE SHEET
                              (Millions)
                                              March 31, December 31,
                                              2000       1999
                                       
       Assets
       Current assets
       Cash and cash equivalents              $397.4    $464.0
       Accounts and notes receivable, net    1,335.5   1,430.5
       Inventories
         Parts and finished equipment          241.2     236.8
         Work In process and materials         136.1     136.1
       Deferred income taxes                   475.6     472.7
       Other current assets                    118.2     105.6
                                        
       Total                                 2,704.0   2,845.7
                                       
       Properties                            1,747.0   1,723.0
       Less accumulated depreciation         1,125.3   1,102.2
                                      
        Properties, net                        621.7     620.8

       Investments at equity                   221.9     225.5
       Software, net of accumulated 
        amortization                           264.9     259.8
       Prepaid pension cost                  1,011.6     975.9
       Deferred income taxes                   655.6     655.6
       Other assets                            326.6     306.4
                                         
       Total                                $5,806.3  $5,889.7

       Liabilities and stockholders' equity
       Current liabilities
        Notes payable                          $52.1     $26.9
        Current maturities of long-term debt   421.4      22.9
        Accounts payable                       926.4   1,036.7
        Other accrued liabilities            1,057.6   1,183.1
        Estimated income taxes                 355.3     348.9
                                       
        Total                                2,812.8   2,618.5
                                     
       Long-term debt                          553.2     950.2
       Other liabilities                       352.7     367.7
       Stockholders, equity
        Common stock                             3.1       3.1
        Accumulated deficit                   (947.9) (1,054.4)
        Other capital                        3,599.9   3,575.0
        Accumulated other comprehensive loss  (567.5)   (570.4)

       Stockholders' equity                  2,087.6   1,953.3
                                      
        Total                               $5,806.3  $5,889.7

 
                          UNISYS CORPORATION
                    CONSOLIDATED STATEMENT OF CASH FLOWS
                             (Millions)

                                            Three Months Ended
                                                 March 31
                                           
                                              2000      1999
                                            
      Cash flows from operating activities
      Net Income                             $106.5     $109.9
      Add (deduct) items to reconcile net
       income to net cash (used for)
       provided by operating activities:
      Depreciation                             37.8       35.2
      Amortization:
       Marketable software                     29.2       25.2
       Goodwill                                 2.4        6.8
       (Increase) in deferred income
         taxes, net                            (2.9)     (20.3)
      Decrease in receivables, net             72.7       67.6
      (Increase) decrease in inventories       (4.4)      15.2
      (Decrease) in accounts payable
       and other accrued liabilities         (246.1)    (159.6)
      Increase in estimated income taxes        6.4       15.7
       (Decrease) in other liabilities          (.2)      (4.4)
      (Increase) in other assets              (46.5)     (38.6)
      Other                                     2.2       (3.6)
                                                    
      Net cash (used for) provided by
       operating activities                   (42.9)      49.1

      Cash flows from investing activities
       Proceeds from investments              135.7      456.4
       Purchases of investments              (128.5)    (451.1)
       Proceeds from sales of properties        7.8        6.5
       Investment in marketable software      (34.3)     (26.8)
       Capital additions of properties        (38.2)     (35.6)
       Purchases of businesses                 (3.8)      (2.5)
                                                    
      Net cash used for investing activities  (61.3)     (53.1)
                                                     
      Cash flows from financing activities
       Redemption of preferred stock                    (168.3)
       Proceeds from issuance of 
        long-term debt                                      .7
       Payments of long-term debt              (2.9)       (.1)
       Net proceeds from short-term 
        borrowings                             25.2        6.9
       Dividends paid on preferred shares                (28.2)
       Proceeds from employee stock plans      17.0       14.2
                                                    
      Net cash provided by (used for)
       financing activities                    39.3     (174.8)
                                                    
      Effect of exchange rate changes on cash
       and cash equivalents                    (1.7)      (4.7)
                                                  
       (Decrease) in cash and cash 
         equivalents                          (66.6)    (183.5)
      Cash and cash equivalents, beginning 
        of period                             464.0      616.4
      Cash and cash equivalents, 
       end of period                         $397.4     $432.9