EDS Adopts New Accounting Rule 
                                        
  Company provides comparative 2001 and 2002 earnings data; releases revised 
                    first and second quarter 2003 results 
 
    PLANO, Texas, Oct. -- EDS (NYSE: EDS) today said 
it has finalized its analysis of accounting rule EITF 00-21, has reviewed its 
interpretation with the SEC staff and is adopting the rule retroactively to 
Jan. 1, 2003.  The action will result in a one-time, non-cash $2.24 billion 
cumulative accounting adjustment.  An after-tax earnings impact of  
$1.42 billion, or $2.92 per share, is reflected in EDS' revised results for 
the first quarter of 2003. 
    To provide comparative data in advance of the Oct. 29 release of third 
quarter 2003 results, EDS also released adjusted historical revenue and 
earnings data (see attached).  As required under retroactive adoption of the 
accounting rule, EDS revised results for its first two quarters of 2003.  EDS 
also provided pro forma quarterly results for 2001 and 2002 to illustrate the 
impact that the new accounting rule would have had in prior years.   
 
    Editor's Note: EDS has posted a basic tutorial on the accounting rule and 
its impact on EDS' balance sheet, as of Jan. 1, 2003, on 
www.eds.com/accountingrule.  The accounting change is mandated for all 
companies that provide services with multiple deliverables under long-term 
contracts. 
 
    About EDS 
    EDS, the premier global outsourcing services company, delivers superior 
returns to clients through its cost-effective, high-value services model. EDS' 
core portfolio comprises information-technology and business process 
outsourcing services, as well as information-technology transformation 
services. EDS' two complementary, subsidiary businesses are A.T. Kearney, one 
of the world's leading high-value management consultancies, and PLM Solutions, 
a leader in product data management, collaboration and product design 
software. With 2002 revenue of $21.5 billion, EDS is ranked 80th on the 
Fortune 500. The company's stock is traded on the New York (NYSE: EDS) and 
London stock exchanges. Learn more at www.eds.com. 
    Note: Changes in EDS' accounting policy resulting from adoption of EITF 
00-21 (new GAAP) are reflected as of Jan. 1, 2003.  EITF-adjusted data for 
2001 and 2002 are provided for comparative purposes only. 
EDS Earnings Per Share Table (unaudited; fully diluted EPS basis) 
 
          EITF-Adjusted   EITF-Adjusted(1)   POC As-reported         POC(1) 
              (new GAAP)       (pro forma)       (prior GAAP)   (pro forma) 
    2003                            
    Q1           $(2.95)            $0.07             $(0.26)        $0.30  
    Q2            $0.18             $0.24              $0.28         $0.34  
 
        EITF-Adjusted(2)  EITF-Adjusted(3)   POC As-reported         POC(3) 
                               (pro forma)       (prior GAAP)   (pro forma) 
    2002                            
    Q1            $0.40             $0.39              $0.72         $0.70  
    Q2            $0.13             $0.12              $0.64         $0.63  
    Q3           $(0.22)           $(0.18)             $0.18         $0.21  
    Q4            $0.63             $0.39              $0.75         $0.51  
 
        EITF-Adjusted(2)  EITF-Adjusted(4)   POC As-reported         POC(4) 
                               (pro forma)   (prior GAAP)       (pro forma)  
    2001                            
    Q1            $0.89             $0.58              $0.93        $0.61  
    Q2            $0.44             $0.49              $0.62        $0.68  
    Q3            $0.10             $0.40              $0.44        $0.74  
    Q4            $0.49             $0.54              $0.82        $0.87  
    
    Footnote 1:  
    -- Q1'03 pro forma excludes loss from discontinued operations (1 cent per  
       share), a CEO severance charge (6 cents per share) and the cumulative  
       effect of a change in accounting for asset retirement obligations (3  
       cents per share).  Q1'03 EITF-adjusted pro forma also excludes the  
       negative impact of $1.4 billion ($2.92 per share) to account for the  
       one-time cumulative accounting adjustment ($2.2 billion pre-tax)  
       related to adoption of EITF 00-21.  In addition, Q1'03 POC pro forma  
       results exclude a pre-tax loss of $334 million, or $0.46 per share,  
       recognized on the NMCI contract. 
    -- Q2'03 pro forma excludes discontinued operations, asset write-downs  
       (5 cents per share) and executive severance (1 cent per share).  
    Footnote 2:  
    -- Amounts represent earnings per share for 2002 and 2001 as if EDS' new  
       accounting had been applied from inception of each contract. 
    Footnote 3:  
    -- Q1'02 pro forma excludes income from discontinued operations (2 cents  
       per share).  
    -- Q2'02 pro forma excludes income from discontinued operations (1 cent  
       per share).  
    -- Q3'02 pro forma excludes loss from discontinued operations (3 cents  
       per share), including a 5-cent per share asset impairment provision  
       associated with the disposition of EDS' subscription fulfillment  
       business.  
    -- Q4'02 pro forma excludes income from discontinued operations (23 cents  
       per share), including a gain on the EDS Consumer Network Services sale,  
       and a 1-cent per share restructuring credit.  
    Footnote 4:  
    -- Q1'01 pro forma excludes income from discontinued operations (1 cent  
       per share), a 37-cent per share gain from the cumulative effect of a  
       change in accounting for derivatives and a related gain on an  
       e-commerce investment, and 7 cents per share in amortization expense  
       related to goodwill and other intangible assets no longer amortized.   
    -- Q2'01 pro forma excludes income from discontinued operations (2 cents  
       per share) and 8 cents per share of amortization expense related to  
       goodwill and other intangible assets no longer amortized.   
    -- Q3'01 pro forma excludes income from discontinued operations (2 cents  
       per share), a charge of 25 cents per share for acquired in-process R&D  
       and other acquisition costs and 7 cents per share in amortization  
       expense related to goodwill and other intangible assets no longer  
       amortized. 
    -- Q4'01 pro forma excludes income from discontinued operations (1 cent  
       per share), 2 cents per share in restructuring credits, and 8 cents per  
       share in amortization expense related to goodwill and other intangible  
       assets no longer amortized. 
 
    EDS Revenue Table ($ in billions), Unaudited 
 
                                       EITF-Adjusted   POC As-reported 
                                           (new GAAP)      (prior GAAP) 
    2003                                                      
    Q1                                        $5.255         $5.368  
    Q2                                        $5.302         $5.522  
 
                                     EITF-Adjusted(5)  POC As-reported 
                                                           (prior GAAP) 
    2002                                                      
    Q1                                        $4.913         $5.266  
    Q2                                        $5.010         $5.395  
    Q3                                        $4.957         $5.334  
    Q4                                        $5.396         $5.507  
 
                                     EITF-Adjusted(5)  POC As-reported 
                                                           (prior GAAP) 
    2001                                                      
    Q1                                        $4.816         $4.893  
    Q2                                        $4.750         $4.992  
    Q3                                        $5.089         $5.455  
    Q4                                        $5.389         $5.801  
 
    Footnote 5:  
    -- Amounts represent revenue for 2002 and 2001 as if EDS' new accounting  
       had been applied from inception of each contract. 
 
     CONTACT: 
     Sean Healy - EDS 
     212-610-8173 
     shealy@eds.com 
 
SOURCE  Electronic Data Systems 
    -0-                             10/27/2003 
    /CONTACT:  Sean Healy of EDS, +1-212-610-8173, or shealy@eds.com/ 
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    /FCMN Contact: shealy@eds.com/ 
    /Web site:  http://www.eds.com / 
    (EDS) 
 




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