EDS And MCI WorldCom Complete EDS Acquisition Of MCI Systemhouse

IT Services Powerhouse to Provide Advanced E-Commerce and
Business Solutions to Global Client Base; MCI WorldCom Intensifies
Focus on Core Communications Services

PLANO, Texas and JACKSON, Mississippi, April 22, 1999 - EDS and
MCI WorldCom today announced that they have completed a transaction
that transfers ownership of MCI Systemhouse, the global information
technology services company, from MCI WorldCom to EDS for $1.65 billion
in cash.

EDS' acquisition of Systemhouse from MCI WorldCom, originally
announced on February 11, is the first of four elements of a global
agreement to be completed between the two companies. The agreement
includes two 10-year outsourcing contracts and a marketing relationship
to explore opportunities in electronic business and networking
solutions. The remaining three parts of the agreement are expected to
be finalized by the end of second quarter, 1999.

The acquisition strengthens EDS' capabilities in applications
development and systems integration, and ranks the company as one of
the leading IT services providers in Canada. Going forward, Systemhouse
will play an important role in EDS' strategy to solidify its
position as the leading provider of global e-business applications. The
acquisition makes EDS a compelling choice for large enterprises seeking
a one-stop service provider to design, implement, operate and integrate
Internet-based solutions within their core business strategies.

"Clearly, EDS and Systemhouse are stronger together than they
were apart," said Dick Brown, EDS chairman and CEO. "It is
gratifying to me and a tribute to the people involved that this
acquisition was accomplished in record time. We are now moving forward
aggressively to ensure that our complementary offerings, particularly
in light of the EDS-MCI WorldCom relationship, will provide our
customers with end-to-end solutions, our shareholders with increased
value and our employees with rewarding technology challenges and
expanded career possibilities."

John Sidgmore, MCI WorldCom vice-chairman, said, "The speed
with which we have completed the first step of these transactions with
EDS is indicative of the compatibility between our two companies. MCI
WorldCom and EDS are the industry leaders in networking and systems
integration. Together, we will offer customers solutions that will
revolutionize the way business does business."

Approximately 9,000 MCI Systemhouse IT employees, primarily located
in Canada, the US and the UK, now make the transfer to EDS.

In Canada, where Systemhouse originated, the combined business will
be known as EDS Systemhouse in recognition of the equity that
Systemhouse has within the computer services industry there. Led by EDS
Canada President and CEO Sheelagh Whittaker, EDS Systemhouse will be a
powerhouse in the Canadian IT services industry. In the United States
and the UK, MCI Systemhouse's operations will be consolidated
within EDS to best realize the full potential of synergies between the
two companies.

In addition to the transfer of Systemhouse, under the global
agreement MCI WorldCom will outsource major portions of its IT services
to EDS, with projected revenues to EDS of $5-$7 billion over the life
of the 10-year contract

EDS will outsource the bulk of its global communications network to
MCI WorldCom, which will provide voice and data communications
management services to EDS and many of its customers for approximately
$6-$8.5 billion over the next 10 years. Additional employees will
transfer between companies at the close of these outsourcing
arrangements.

EDS and MCI WorldCom also will explore the marketing of networking
solutions to their worldwide client bases of large commercial and
government organizations intent on seizing new opportunities in
electronic business and global communications.

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

MCI WorldCom is a global communications company with revenue of more
than $30 billion and established operations in over 65 countries
encompassing the Americas, Europe and the Asia-Pacific regions. MCI
WorldCom is a premier provider of facilities-based and fully integrated
local, long distance, international and Internet services. MCI
WorldCom's global networks, including its state-of-the-art
pan-European networks and transoceanic cable systems, provide
end-to-end high-capacity connectivity to more than 40,000 buildings
worldwide. For more information on MCI WorldCom, visit the World Wide
Web at http://www.wcom.com.

NOTE: For further information about EDS Canada and the impact of the
acquisition in the Canadian IT market, please contact Nicole Loreto at
613-787-5436.