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EDS closes acquisition of Loudcloud`s managed hosting business

Licensing agreement and Opsware software deployment commences

Johannesburg, 20 Aug 2002

EDS has announced the closing of its acquisition of Loudcloud`s managed hosting business, setting the stage for deployment of a technology designed to drive significant savings through automation of the EDS global data centre infrastructure.

The transaction, announced on 17 June and completed nearly two weeks ahead of schedule, brings to EDS Loudcloud`s marquee list of 50 enterprise Web hosting clients. With the closing, EDS will begin deploying Opsware*, Loudcloud`s cutting-edge IT automation software, across its worldwide data centre network.

"We are pleased to have completed this transaction ahead of schedule. This further strengthens EDS` leadership position and commitment to the Web hosting market," said Jeff Kelly, president of EDS Hosting Services.

"EDS` worldwide delivery capabilities combined with the Opsware technology presents a unique value proposition that is second to none. By fully leveraging Opsware throughout our global data centre network, we expect to build on our existing capability to deliver computing services on-demand while continuing to provide the highest levels of data integrity and security."

Licensing agreement

EDS also announced on 17 June a three-year licensing agreement for Opsware automation software. The agreement provides the foundation for widespread automation of service delivery and applications management -- first within EDS` managed Web hosting business, and over time throughout the company`s global data centre infrastructure. This infrastructure consists of more than 50 000 servers in 15 major data centres and 140 client-owned and regional data centres worldwide. EDS expects the deployment of Opsware to reduce cost and improve efficiencies in the data centre environment by automating the complete lifecycle of managing business applications and the underlying infrastructure.

"The early completion of the acquisition is a testament to both parties` focus on the success of the partnership, and EDS` commitment to leadership in Web hosting," said Opsware President and CEO Ben Horowitz. "We are excited about the opportunity ahead for Opsware as we focus on delivering our automation software to enable IT organisations to reduce costs and dramatically improve their quality of operations."

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EDS

EDS, the leading global services company, provides strategy, implementation, business transformation and operational solutions for clients managing the business and technology complexities of the digital economy. EDS brings together the world`s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers` trust and continuously seek improvement. EDS, with its management consulting subsidiary, AT Kearney, serves the world`s leading companies and governments in 60 countries. EDS reported revenues of $21.5 billion in 2001. The company`s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.

Loudcloud Inc

Loudcloud, soon to be rebranded Opsware Inc, is the leading provider of IT automation software, offering a complete solution for enterprises, government agencies and service providers looking to reduce costs and increase IT efficiencies. The Opsware System automates the complete IT lifecycle including provisioning, deploying, changing, scaling, securing, recovering, consolidating, auditing and reallocating servers and business applications. The Opsware System uniquely combines process automation with built in operations knowledge on over 200 technologies. Opsware was the foundation of Loudcloud`s software-powered managed services business and has been proven to lower costs, accelerate change and increase service quality. For more information on Opsware Inc, please visit our Web site at www.opswareinc.com.