EDS in New Partnership with Towers Perrin

January 20, 2005

Cleary Gottlieb is representing Citigroup Global Markets as financial advisor to Electronic Data Systems (EDS) in connection with EDS’s creation, in partnership with Towers Perrin, of a new company to deliver a range of human resources outsourcing services to a variety of enterprises. EDS will own 85% of the new company and Towers Perrin will own 15%. Both companies contributed assets to the new entity and EDS will pay Towers Perrin approximately $420 million. The new company is expected to have annual revenues of approximately $600 million and serve more than 400 clients worldwide.

EDS provides business process solutions and services in key emerging areas including human resources, finance and accounting and supply management. Towers Perrin is a global professional services firm that helps organizations improve business performance through effective people, risk and financial management.