EDS, Altria sign multi-year IT services agreement

Issued by EDS South Africa
Johannesburg, 17 Jul 2003

EDS has announced an innovative information technology (IT) agreement to support Altria Corporate Services, Inc in its creation of a new company to handle a range of IT services for Altria Group, Inc and its family of companies. Financial terms were not disclosed.

Under the five-year contract, EDS and the new company - Technology Enterprise Computing Works, LLC (TECWorks), an Altria Corporate Services subsidiary - will provide a range of IT services to a number of Altria affiliates in the Americas. The new subsidiary`s objective is to realise a substantial reduction in Altria`s IT spending in the Americas.

The approach will leverage EDS`s, and its consulting subsidiary AT Kearney`s, combined expertise and intellectual capital to improve the delivery of Altria`s IT services, lower overall IT costs, and bring innovation in the use of IT over the life of the contract.

Altria will manage TECWorks, working closely with EDS and AT Kearney to improve in-house skills and leverage best practices. The objective is to significantly improve IT shared services, keeping the equipment and people on Altria premises, while leveraging EDS`s world-class skills in IT operations and AT Kearney`s skills in business innovation.

"Technology can deliver competitive advantage in the consumer packaged goods industry," said Scott W Klein, president of EDS`s Consumer Industries and Retail business. "EDS and AT Kearney`s experience in the consumer marketplace will allow us to leverage our industry knowledge and IT leadership to make TECWorks a creative, efficient, cost-effective means of delivering a wide array of IT to its affiliated consumer packaged goods companies in the Americas. Our goal is to help these companies become the leading users of technology in their industries."

EDS will use its extensive network of alliance and business partners to meet TECWorks` shared services business goals. With the signing of this contract, EDS expands its global leadership in deploying technology for consumer industries and retail industries. Of the top 25 global retailers, 18 are EDS clients and of the top 25 global consumer companies, 18 are EDS clients.

More than 4 000 EDS employees provide solutions for consumer industries and retail clients worldwide.

EDS

EDS, the world`s largest independent information technology 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 2002. 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.

Altria Group, Inc

Altria Group, Inc is the parent company of Kraft Foods Inc, Philip Morris Capital Corporation, Philip Morris International Inc and Philip Morris USA Inc. In addition, Altria Group, Inc has a 36% economic interest in SABMiller plc, the world`s second-largest brewer. The brand portfolio of Altria Group`s consumer packaged goods companies includes such well-known names as Kraft, Jello, Post, Marlboro, Maxwell House, Nabisco, Oreo, Oscar Mayer, Parliament, Philadelphia and Virginia Slims.

Altria Group recorded 2002 net revenues of approximately $80 billion. For more information about Altria Group and its family of companies, please visit the company`s Web site at www.altria.com.

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