Subject: [NEXTEL-1] Nextel Broadens Services Agreement With EDS With Approximately $100 Million Contract Amendment

From: [email-masked]
Date: Tue, 04 May 2004 03:59:24 -0400

Nextel Broadens Services Agreement With EDS With Approximately $100
Million Contract  Amendment
Monday May 3, 4:01 pm ET

Nextel Growth, Collaboration and Two Years of Excellent
Service Delivery Triggers Additional Business

PLANO, Texas, May 3 /PRNewswire/ -- EDS (NYSE: EDS - News) today
announced it reached an agreement with Nextel Communications Inc.
(Nasdaq: NXTL - News) to amend its current five-year master services
agreement, signed in late 2001, to cover additional applications
development and hosting services, which increases the overall value of
the agreement by approximately $100 million. This contract amendment was
triggered by Nextel's growth and underscored by two years of EDS'
excellent service delivery.

Under the agreement, signed earlier
in the first quarter of 2004, EDS will
provide application development
services, building on the existing
team in place at Nextel. EDS will also
provide server and storage
hardware on Nextel's behalf to
support the company's growth.

"During the past two years, EDS
successfully migrated our data
processing function to EDS facilities,
increased our systems availability
and maintained delivery levels
higher than we've ever seen
before," said Dick LeFave, senior
vice president and chief information
officer for Nextel. "These successes
have helped us manage our impressive growth and achieve significant
cost- savings."

Highlights from the past two years include the successful migration of
Nextel's hundreds of live production servers and their critical business
applications from a Nextel facility in Georgia to EDS' Service
Management Center in North Carolina, and the creation of Nextel's
disaster recovery center. EDS also played a vital role in Nextel's
internal initiative to redefine and streamline its internal processes by
integrating and leveraging technology.

"EDS' scalable resources -- human and infrastructure -- are very
effectively supporting Nextel as it grows," said Stuart Chinnery,
enterprise client executive, Communications Industry for EDS. "The
EDS/Nextel team works closely together to help Nextel take full
advantage of its growth and succeed in a complex and competitive
business landscape."

Under the original five-year outsourcing agreement, EDS has provided
Nextel with comprehensive IT services from the desktop to the back
office including managing its corporate data center, certain database
administration functions, disaster recovery, helpdesk, desktop services
and other technical functions.
EDS in the Communications Industry

EDS, a leader in serving the communications sector, brings together
best- in-class technologies and partners to deliver superior return on
investment to clients through high value transformational services. EDS
assists communications clients in becoming agile by transforming their
infrastructure and business processes to optimize existing assets;
control cost; and produce new revenue streams.

EDS has robust industry expertise, insight, solutions, technology acumen
and outsourcing capabilities and currently serves half of the Fortune
500 communications companies globally. Approximately 7.5 percent of EDS'
2003 revenue, or $1.6 billion, was derived from services provided to the
Communications industry and represented EDS' largest industry segment in
the US market.

About EDS

EDS provides a broad portfolio of business and technology solutions to
help its clients worldwide improve their business performance. EDS' core
portfolio comprises information-technology, applications and business
process services, as well as information-technology transformation
services. EDS' A.T. Kearney subsidiary is one of the world's leading
high-value management consultancies. With 2003 revenue of $21.5 billion,
EDS is ranked 87th on the Fortune 500. The company's stock is traded on
the New York and London stock exchanges. Learn more at www.eds.com .

The statements in this news release that are not historical statements,
including statements regarding the amount of new contract values and the
products and services expected to be offered Nextel thereunder and the
benefits expected to be derived by Nextel therefrom, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to numerous risks and uncertainties, many of
which are beyond the control of either EDS or NEXTEL, which could cause
actual results to differ materially from such statements. For
information concerning these risks and uncertainties, see EDS' and
Nextel's most recent Form 10-K, each filed with the SEC. EDS and NEXTEL
each disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

CONTACTS:
Terry Balluck - EDS
972 797 8751
[email-masked]

Aimee Metrick - Nextel
703-433-4795

 http://biz.yahoo.com/prnews/040503/dam067_1.html
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