NEC and Unisys to Collaborate Worldwide

NEC and Unisys to Collaborate in Technology Research and Development, Manufacturing and Solutions Delivery Worldwide.

Global partnership aims at better innovation at less cost through common server platform, shared software development, support services and solution integration

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.1) and Unisys Corporation (NYSE: UIS) have announced that they have signed a Memorandum of Understanding to negotiate a partnership to collaborate in technology research and development, manufacturing and solutions delivery. This alliance would cover a number of areas of joint development and solution delivery activities focusing on server technology, software, integrated solutions and support services.

“This alliance will significantly contribute to NEC's global business. Going forward, we expect high-end Intel-based servers, the most important in the market, to be even further enhanced, boosting global shipments. Optimal advancement of server software will be enabled by the mutual provision of both companies' software in the mission critical business field. Furthermore, the complementary strengths of both companies in solutions and services markets and applications will be of great advantage to NEC's global strategy,” said Akinobu Kanasugi, President of NEC. “Unisys world-class consulting and support services will also benefit our customers.”

“In this age of increasingly globalised business, companies that are continents apart can discover that they’re ideally positioned to mesh their complementary strengths and vision; so it is with NEC and us,” said Joseph McGrath, President and CEO of Unisys. “Together, we can provide an enriched combination of technology, consulting expertise and global presence that is designed to generate increased innovation with lower R&D costs, stronger offerings for our customers, and access to new market opportunities for both companies. This is among a number of new ventures for Unisys that build on our more aggressive partnering model to provide value and unlock opportunities around the globe.”

Technology Alignment

NEC and Unisys plan to collaborate to design and develop a common high-end Intel-based server platform to provide customers of each company with increasingly powerful, scalable and cost-effective servers. The first of these next-generation common platforms is planned for release in 2007. The new servers are to be manufactured by NEC on behalf of both companies. Unisys will continue to supply its customers with ClearPath mainframes with the benefit, over time, of joint R&D by both companies and manufacturing provided by NEC.

The two companies plan to supply to each other their current Windows and Linux-based middleware products, such as NEC’s “VALUMOware” and Unisys Sentinel software. They also plan to jointly develop new middleware aimed at maximising application and systems management efficiency.

“Industry data shows that Unisys already has the largest share of the fast growing high-end Intel-based Windows server market,” said Fred Dillman, chief technology officer of Unisys. “Unisys and NEC are positioned to deliver the benefits of the Intel technology roadmap for future chip developments, to drive the growth of standardized data centre servers – bringing lower costs, greater flexibility and higher performance to our customers.”

Solutions Alignment

Together, NEC and Unisys plan to extend the customer value and effective geographic scope of their solutions business. Initial areas for the planned collaboration include:

- Security Products and Solutions. Unisys and NEC both have a strong background in providing their respective offerings in the security market for some of the most demanding industries and government organisations. The companies are planning several new and expanded initiatives that combine NEC’s sophisticated biometric devices – such as fingerprint, palm print, and facial recognition systems – with Unisys domain expertise in developing security solutions for financial services, airline transportation, federal government international border control and other industry segments.

- Telecommunications Solutions. The companies have agreed to explore opportunities for network-based services for the telecommunications industry in order to leverage their respective core competencies. The parties may also collaborate to deliver an end-to-end solution for the emerging IP Multimedia Subsystem (IMS) sector that will help global carriers deliver new services through convergence between existing fixed and mobile networks.

- 3D Visible Enterprise Solutions. Under the terms of the partnership, NEC will explore the use of Unisys 3D Visible Enterprise (3D-VE) methodology to improve the delivery of services to its clients. 3D-VE is Unisys foundational approach to marrying domain expertise with technical scenario modeling tools to provide customers with a rich, three-dimensional representation of the costs and impacts of IT decisions at all levels of their business organisation.

- Worldwide Opportunities. NEC and Unisys plan to collaborate to advance their intersecting interests in areas such as in consulting, systems integration, outsourcing, and leading-edge solutions as they engage a broad spectrum of customers in countries such as the United States and China, as well as other growth markets.

Support Alignment

- Maintenance and Support. Under the proposed arrangements, Unisys would become the preferred partner to provide technology support and maintenance services, such as break-fix support, to NEC’s customers in markets outside Japan. Additional areas for exploration include how NEC can leverage Unisys global footprint in other service areas.

While non-binding, the Memorandum of Understanding contemplates the negotiation of binding agreements that would give effect to the areas of collaboration mentioned in this release.

ENDS

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

About Unisys Asia Pacific
Unisys Asia Pacific helps clients eliminate business and IT complexity providing specialised services delivered by trusted consultants. Drawing on a history of industry innovation and expertise, Unisys Asia Pacific delivers services and solutions through subsidiaries in Australia, New Zealand, China, Hong Kong, Korea, Malaysia, The Philippines, Singapore, Taiwan and Thailand and through distributors or resellers in other countries in the region. For more information, visit www.unisys.co.nz

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

About NEC
NEC is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,855 billion yen (approx. $45 billion) in the fiscal year ended March 2005. For additional information, please visit the NEC home page at: http://www.nec.com.

Forward-Looking Statements
Any statements 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 statements of the company’s plans, strategies or objectives 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. In particular, statements in this release regarding the anticipated benefits of the arrangement between the parties assume that the company and NEC will execute definitive agreements as contemplated by the memorandum of understanding. In addition, the anticipated benefits are dependent upon the ability of the companies to timely and effectively implement their planned actions and upon the level of demand for each company’s products and services. The companies’ ability to achieve the anticipated benefits is also subject to general economic and business conditions, aggressive competition and potential cost escalations. A discussion of additional 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.

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