Indiana Awards EDS New $209 Million Medicaid Contract

    Agreement Extends 16-Year Relationship with Hoosier State

    INDIANAPOLIS, Jan. 7 /CNW/ -- EDS, Indiana's Medicaid partner since 1991,
has been awarded a $209.9 million, six-and-a-half-year contract to upgrade and
continue to maintain the state's Medicaid Management Information System.
    The new contract will leverage EDS' leading-edge interChange Health
System, which serves as an industry model and is in operation or being
implemented in more than a dozen states, including Kansas, Oklahoma,
Pennsylvania and Kentucky. Among the upgrades are a Web-based tool that will
enable health care providers to electronically enroll in the Medicaid program
as well as a number of internal processes.
    EDS will continue as fiscal agent to the state and its 27,000 health care
providers, who care for more than 800,000 recipients and comprise the nation's
17th-largest Medicaid program.
    The agreement includes a seven-month phase to design, develop, test and
implement the additional features followed by a six-year management term.
    The contract, which was signed in late December, extends a 16-year
relationship between EDS and Indiana.
    The EDS solution will provide Indiana with enhanced transparency as it
implements Gov. Mitch Daniels' package of Medicaid reforms such as the Healthy
Indiana Plan, which provides health coverage to previously uninsured Indiana
residents, and the movement of aged, blind and disabled residents to a care
management model. It also will continue claims processing coverage for other
Indiana health programs.
    "At the conclusion of the procurement process, it was evident that EDS
was able to bring great value and experience to the taxpayers of Indiana,"
said Mitch Roob, Family and Social Services Administration Secretary. "The
technology and insight that EDS has to offer will be a tremendous asset as we
continue to make great strides in new, innovative programs, such as the
Healthy Indiana Plan."
    "As Indiana's technology partner for more than a decade and a half, EDS
understands the Healthy Indiana Plan and the state's goal to cover its
uninsured residents," said Sean Kenny, vice president, EDS Global Health Care.
"Our continued relationship will provide stability not only for the current
Medicaid program, but also for future reforms."
    "Long relationships are reflections of earned trust and understanding of
cultures and goals," said Barbara Anderson, vice president, EDS U.S.
Government Health Care. "Over the years, Indiana and EDS together have
delivered program efficiencies to enable reforms and help push forward vital
new programs to improve health outcomes for Hoosiers."
    EDS is the nation's largest provider of Medicaid and Medicare process
management services, administering more than $100 billion in benefits a year.
EDS processes about 1 billion Medicaid claims annually, more than any other
company, and provides fiscal agent services/Medicaid information technology
support for 21 states. Through its global healthcare services and solutions,
EDS touches more than 200 million patient lives each day.
    About EDS
    EDS (NYSE:   EDS) is a leading global technology services company
delivering business solutions to its clients. EDS founded the information
technology outsourcing industry 45 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. Learn more at
    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-K.  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.

     Bill Ritz - EDS

For further information:

For further information: Bill Ritz of EDS, +1-703-742-1307, Web Site:

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