Good day and welcome to the Unisys third quarter 2008 results conference call. At this time I would like to turn the conference over to Mr. Jack McHale, Vice President of Investor Relations at Unisys Corporation; please go ahead sir.

Thank you, operator. Hello everyone and thank you for joining us this morning. About an hour ago Unisys released its third quarter 2008 financial results. With us this morning to discuss our results are Ed Coleman, our CEO; and Janet Haugen our CFO. Before we begin let me just cover a few items. First, today’s conference call and the Q-and-A session are being webcast by the Unisys investor website. Also, you can find on our investor website, the earnings release and the presentation slides that we will be using this morning to guide our discussion. These materials are available for viewing as well as downloading and printing. Third, today’s presentation, which is complementary to the earnings press release, includes some non-GAAP financial measures. Certain financial comparisons made in this call will be with and without the impact of retirement expense and restructuring charges. In the presentation we have provided a reconciliation of our reported results on a US GAAP basis compared with our results excluding the impact of restructuring charges and retirement expense. Finally, I’d like to remind you that all forward-looking statements, made in this conference call are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These factors are discussed more fully in the earnings release and in the company’s SEC filings. Copies of these SEC reports are available from the SEC and also from the Unisys investor website. Now, let me turn the call over to Ed.

Thank you, Jack. Hello, everyone. I’m delighted to be here and to be speaking with you for the first time today. I hope to meet many of you in person in the months ahead. I thought I’d start this morning by taking a few moments to give you some background about myself and why I joined Unisys. I’m extremely excited about taking on this role, and the opportunity to lead this Company. Unisys is one of the best known in enduring brand names in IT. The company has tremendous assets to build on; our people, our global network, our services and solutions, our technology and a 100 plus year history of innovations. I come to this job with a great deal of optimism. Despite the ups and downs that Unisys has gone through in the past and the current challenges facing the global economy, I see much unrealized value here. Working together, we can unleash this potential and make Unisys a leader again in targeted areas where we can lead, grow and command competitive profit margins. I’ve spent my entire 30 year career in the IT industry, first with IBM, then at Computer Sciences Corporation and later as CEO of CompuCom, President of the Computing Solutions Business of Arrow Electronics and most recently CEO at Gateway. I love this industry and I have a passion for services and solutions and by helping companies become market leaders by targeting unmet needs in the market and delivering on those needs better than anyone else. Most of all, I have a passion for leading IT companies through transformational change; by that I mean change that extends through every aspect of a company; from its strategy and business model, to its operations and go to market approach, to the person delivering a service or solution to a client. As just one example of this kind of change in a previous CEO role, we transformed the company from a commodity computer reseller with paper thin margins, to a value added provider of IT outsourcing services. Recognized as a leader by Gartner and highly regarded by other industry analysts and customers alike. It took some time for this to happen and involved significant strategic operational and cultural change, but it paid off. In my experience, corporate change programs work when they are simply structured, clearly organized, consistently communicated and executed from top to bottom with straightforward lines of accountability. It’s not a complicated formula but as with anything, the hard part is in the execution, but when you get it right, the benefits could be tremendous for shareholders, clients and employees. I’ve had only a few weeks on the job here and haven’t worked out the exact formula for Unisys, but this morning I would like to share with you my initial impressions and priorities. Before I do this, our CFO, Janet Haugen will review our third quarter 2008 results.

Thanks Ed and hello everyone. To start, please turn to slide one of the presentation for an overview of the quarter. This was a difficult and disappointing quarter for the company. We did not execute well against our priorities and our third quarter demand was impacted by the economic uncertainties in our key commercial markets, particularly financial services and by a slowdown in our federal business due to slower government spending. Clients responded to tight credit conditions and recession concerns by reducing IT spending. We saw the impact of that both in orders and revenue. Reduced revenue volume against fixed costs led to lower than expected margins in our services business and overall. There were some positives in the quarter. We saw growth in our non-US federal public sector business and we were able to close a number of key second half ClearPath deals in the third quarter. This resulted in growth in our ClearPath revenue and aided margins in our technology business in the quarter. In addition, by tightly managing working capital, we generated free cash flow in the quarter, a key focus for the company. We generated $114 million of operating cash flow and $36 million of free cash flow in the quarter. We expect market conditions to remain challenging in the fourth quarter and we will be reducing expenditures as we work through this environment. This morning I will provide more details on our third quarter 2008 financial results including cash flow. To begin, please turn to slide two for a summary of our third quarter 2008 results. At the top line, we reported revenue of $1.31 billion in the quarter, down 6% year-over-year. Currency had a two percentage point positive impact on our revenue in the quarter. Based on today’s rates, which reflect the recent currency…

Thanks, Janet. As these results indicate, we have a lot of work to do. While Unisys has many strengths to build on, the company clearly is not meeting its potential and needs greater focus on how we apply our resources. To turn this picture around, we need to move quickly and with a sense of urgency, but also in an informed way with purpose and a clear plan. As you know, this year the company has been reviewing options to drive shareholder value, that process continues. Building on the work and analysis has already been done. I’m taking a fresh look at all aspects of the company’s strategies, operations, portfolio and go to market approach. Since joining Unisys, I’ve talked with hundreds of employees, as well as clients and business partners. I plan to talk with many more in the weeks ahead. In my conversations over breakfast and lunch and in town hall meetings, I’m asking people for their ideas on what makes Unisys strong? What are the basic fundamental strengths of the company? What do we do better than anyone else in the world and what might be keeping us from doing that work in a way that meets client needs and generates growing profits? I’m still in the process of gathering information, but I want you to be aware of the principles that I think are key. The first is that successful companies build on their strengths; especially in a turnaround situation it’s critical that we build our foundation on what we’re good at, because those are the areas that clients value and where we can capture reputation, mind share and margin. The second principle is successful companies build on exceptional customer service. It’s my strong belief that the only true and lasting differentiator in IT services and…

(Operator Instructions) Our first question comes from Jason Kupferberg - UBS.

I wanted to ask you a question to start off or maybe a two-part question, actually. The first one is, can you give us a rough idea of how long you think it may take for you to put a concrete plan in place, understanding that you’ve only been on the job for a few weeks now and kind of a follow-up to that, based on what you know about the three year restructuring program that Unisys is finishing up now, what are some of the things that you might look to do differently?

Well thanks Jason, great question. For the first part of it, I would plan that by the end of this year, I ought to be able to be much more explicit about the path forward and the actions that we’re going to take, both tactically and strategically, but I don’t want to leave the impression that we’re not doing anything until we make some announcement as to the way forward. There are lots of things that we can be doing and are doing right now that begin to affect the expense structure, as well as focusing on where we play stronger in the marketplace and where are areas that perhaps we should not be playing. The second part of your question I think kind of ties back to that, that in terms of restructuring programs and strategic programs and the like, I really don’t see this as an event or a project. This is really about how we manage the business on a day-to-day basis and are we being as cost effective as we can be every week and every month? Are we improving the cost of our service delivery? Are we taking expense out wherever we can and turn this from a program mentality into a way of doing business mentality and that’s much more in line with my philosophy, because this has to be a part of the daily management of the business.

Okay and should we expect to see some new restructuring charges as part of some of the actions that you are already taking or is it too soon for that?

Jason, it’s Janet, good morning. The actions that we are taking right now as we said in the comments are focused in the SG&A area. The first area we’re going after is with discretionary spend, it’s not employee related and so those areas are things that do not have restructuring expense related with them. We are continuing to try to make these actions pay for themselves in the short-term time period, so as of right now we have no plans for a large restructuring charge. These are things we’re going to in this early stage manage through the operations and the costs.

Okay and then just a couple questions on the quarter itself. What happened in federal, if you can give us some more specifics there, because pretty much all the peer play federal IT vendors are reporting strong bookings. It’s obviously the end of the Federal Government’s fiscal year in September when they tend to have some kind of spending flush. I guess you guys maybe didn’t participate as much as in the past or were there specific agencies or programs within US Federal that fell short of expectations?

Jason, on our federal business, our federal business is up orders wise about 15% year-to-date, but in the third quarter we were flat in orders and you’re right, we normally see a push or a close out of the end of the fiscal year and we did not see that across our agencies this year. It may be the mix. We are predominantly in Homeland Security, civilian agencies and then defense is the smallest component of our federal business. It may be the mix of business that causes that difference. While we do have order increase year-to-date, we did have flat orders this quarter in a quarter that you usually see a little bit more close out, we didn’t participate in that this quarter and our revenue was down as we said on the call.

And just a last question on the outsourcing business, I know you covered this a little bit, but it was down year-over-year for the first time in over two years. Maybe some of this was currency, but people tend to think of outsourcing as kind of being fairly steady throughout different economic cycles. Was this just a function of lower volumes on your BPO contracts?

Thanks Jason for that clarification. As I said in my comments, our ITO business was essentially flat in the quarter. So when you look at the two portions of outsourcing, BPO and ITO, ITO was flat in the quarter. We do have a nice pipeline of opportunities in that ITO space and so we still feel good about the growth prospects for that business, although it was flat this quarter. The decline in the outsourcing business is really attributable to the BPO and it is predominantly financial services driven, causing that decline.

Your next question comes from Eric Boyer - Wachovia.

I was just wondering if you could update us on the timing of the TSA award.

We do not have an indication of timing right now. We are still waiting for that to come from the agency.

The RFP has not been let yet. Eric Boyer – Wachovia: Okay and just on I guess your outsourcing business and the orders; I can understand why they would be down in the economic softness we’re seeing now. I was just wondering, has the win rate changed at all on that business?

Eric, it’s not a question of win rate, it’s a question of timing. If you look at outsourcing orders that we had in this quarter, if we did not see the impact of the financial credit crisis, three of our large orders that we were anticipating working and closing with a high probability for the quarter, all delayed as a result of decisions or institutional issues. So we think the prospects are good for us in the pipeline for outsourcing. We think the environment we saw in the third quarter is more event-driven; particularly in these three large ones that we were working on and we expect to continue to gain momentum as we close the order pipeline going forward. So it’s not a decline in the win rate, other than the fact that we did see in particular three large deals that we had anticipated to close this quarter, be delayed as a result of issue in their own institutions.

Okay and could you just comment then on that pipeline. You were talking about, the strength there; is it mostly existing customers, kind of the mix between new and existing customers?

In the outsourcing business across all the portfolios, that’s where we see a higher percentage of new customers compared to the rest of our portfolio and that profile continues. It’s a mix of new and existing customers, but more weighted to new customers than any other area of our portfolio.

And that does conclude the question-and-answer session. For any additional or closing remarks I’ll turn the conference back over to our presenters.

Thank you very much for joining our call today and look forward to speaking with you next quarter and all the best to you. Thank you.