There's no sugarcoating these results. They are the by-product of a difficult market and our own decisions,

We are deeply disappointed our lowered guidance for third-quarter earnings precipitated such a dramatic drop in EDS' stock price,

EDS continued to perform well in a very challenging economic environment, ... Our robust contract signings over the past two years have kept revenues growing well ahead of industry rates.

Both companies share a strong focus on digitization. We will continue to support Xerox's operations, and join them in developing relevant solutions for our clients and customers,

Our revenue grew 7 percent on an organic basis this quarter, ... We are confident EDS' revenue performance will improve in the second half of the year and beyond.

Aligning with MCI WorldCom and its global telecommunications capabilities will enhance EDS' ability to serve our customers as they move into the digital world of electronic business, ... This relationship assures that both EDS and those we serve are positioned to capitalize on the cresting wave of global data and voice network services.