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EDS and GM North America Renew Three-Year IT Services Contract

23 December 1999

EDS and GM North America Renew Three-Year IT Services Contract

     Agreement between the two companies continues one of the largest IT
                   outsourcing agreements in North America

    TROY, Mich., Dec. 22 -- EDS announced today the
renewal of a three-year agreement with General Motors North America (GMNA) to
provide IT systems and services for operations in the United States, Canada
and Mexico, including Saturn.  The agreement, which is one of the largest IT
outsourcing arrangements in North America, is effective January 1, 2000,
through December 31, 2002.  It includes the entire portfolio of Master Service
Agreement (MSA) services that EDS currently provides to all GMNA operations,
representing a large portion of GMNA's total IT budget.
    "Through this joint effort, we will build on our relationship with GM --
one built on trust, and measured by performance that sets a new standard for
customer service," stated Doug Hoover, EDS corporate vice president.  "In
these agreements, both GM and EDS have mutual incentives for streamlining and
simplifying business processes that will help both companies reach their
common business objectives.  EDS also will seek opportunities to provide GM
with new business solutions to keep pace in the Digital Economy."
    The three-year renewal of the Sector Service Agreement calls for EDS to
continue providing engineering, manufacturing, sales, service and marketing
and business services IT.  The contract renewal falls within the scope of the
10-year MSA, which was signed in 1996.  Benefits of the agreement include:
    *  Service quality -- EDS will continue to deliver services as defined by
a rigorous, market-based metrics process.
    *  Ease of doing business -- EDS will use a Web-based system to streamline
business processes and implement a consistent and standardized approach to
managing service agreements.
    *  Restructured service delivery model -- EDS is teaming with GM IS&S to
improve GMNA business processes and EDS service delivery models in order to
reduce IT structural costs in the competitive IT marketplace.
    *  Skills and processes -- EDS is committed to continuing the
implementation of improvements to its service delivery processes and the
upgrading of its technical skills through industry certifications.

    EDS, a leader in the global information technology services industry for
more than 35 years, delivers management consulting, electronic business
solutions, and systems and technology expertise to improve the performance of
more than 9,000 business and government clients in about 50 countries.  EDS
reported revenues of $16.9 billion in 1998.  The company's stock is traded on
the New York Stock Exchange and the London Stock Exchange.  Visit
EDS via the Internet at http://www.eds.com