Good day and welcome to the Unisys first quarter 2009 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, good morning everyone and thank you for joining us. About an hour ago Unisys released its first quarter 2009 financial results. With us this morning to discuss our results are Ed Coleman, our CEO; and our Chief Financial Officer Janet Haugen. Before we begin I want to cover just a few housekeeping details. First today’s conference call and the Q-and-A session are being webcast by the Unisys investor website. Second 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 for downloading and printing. Finally, I would 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 the 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.

Thanks Jack. Hello everybody, thank you for joining us this morning. As we begin our call today please turn to Slide 1 of the presentation for the highlights of the first quarter. We made progress in the quarter, in the challenging economic environment, in driving our turnaround program at Unisys and are encouraged by the progress we made in reducing expenses and improving cash from operations. We put out a strong message internally about the importance of reducing expenses in driving cash as we work through this economic period, and our people rose to the challenge. Operating expenses declined 24% year over year. Some of that improvement came from currency but the bulk of this improvement was driven by the actions we have been taking and continue to take to simplify the organization and reduce SG&A. Progress on expenses in this quarter helped us offset some of the pressure on our gross margins due to lower revenue. In fact we were able to slightly improve operating margins in our services business over the year ago quarter. We also did a good job managing working capital and driving cash. We generated $39 million of operating cash flow compared with the cash usage of $49 million a year ago. That is an $88 million improvement and it came on what is seasonally a weak cash quarter for us. Another highlight was our US federal government business with great revenue and orders in the quarter, and hopefully you have seen some of the orders we have announced in this business in recent months. Turning to Slide 2, unfortunately we are not able to fully leverage our expense improvement and bring it to the bottom line because of lower volume at the top line. The demand environment remains highly uncertain. While our US Federal…

Thanks Ed, and hello everyone. As Ed discussed the tough economic environment in the first quarter along with the impact of currency impacted our top line. We significantly reduced SG&A expenses, improved working capital management, and drove improvement in the cash requirements of our business model. Our cash flow from operations improved significantly year-over-year in the quarter. This morning I will take you through our financial results for the quarter and the key drivers behind the expense reduction and the improved cash performance in the quarter. I will also update you on a revised outlook for cash funding to our US pension plan in 2010. To start please turn to Slide 7 for an overview of order trends in the quarter. As Ed mentioned, we continue to see organizations pulling back on discretionary spending in this uncertain economy and deferring decisions on IT projects. We saw order declines in the US and all international regions with the exception of Latin America where orders grew. We closed the quarter with $5.7 billion in services in backlog which was down 6% from the services backlog at December 31, 2008. Moving to Slide 8, which summarizes our financial results in the first quarter. At the top line we reported revenue of $1.1 billion, a decline of 15% year over year. Foreign currency exchange had a 10 point negative impact on revenue this quarter. This is the highest we have seen in many years. On accounts in currency basis revenue was down 5%. Based on today’s rate we anticipate a 9 to 10 percentage point negative impact on revenue in the second quarter of 2009. As you can see in our results, our gross margin was impacted in the quarter by lower revenue and the negative impact of foreign currency fluctuations. More than half…

Thank you very much, Janet. At this time we would like to open the lines up for your questions and operator if you could do so, I would appreciate it.

Thank you, (Operator instructions). Your first question is coming from Jason Kupferberg - UBS. Jason Kupferberg – UBS: I wanted to ask a question about the top line efforts and I can certainly appreciate how the approach to cost and the execution there is differing from the some of the Company’s past efforts but we can talk a little bit about the part of the turn around program that is more top line oriented and it seems like the whole notion of tightening the strategic focus in narrowing the focus on a smaller number of service lines and use more offshore labor something that Unisys has talked about for quite a while and wanted to get a sense of what aspects of that strategy might be different this time around that might make you guys feel like there is a better chance of success in that regard despite the macro environment.

Thank you very much, Jason. I think it comes down to what we are calling out as the four fold key growth opportunities for us as we defined them around data center transformation, security, end-user outsourcing and application modernization. What is going on inside the Company is allocating more of our resources and focusing resources across the Company on those four areas. While we are organized by business units from technology to integration, to outsourcing in our federal unit, what we are doing is pooling together representatives from all of those business units around these four initiatives and building a strong platform of capability and offerings that we believe will be differentiated in the marketplace across all four of those. I cannot speak really to the history of the Company in the sense of what has been done in the past but I can tell you that I am really gratified to see how strongly the geographies and the business units were all rallying around these four opportunity areas. We have also taken each one of our business unit leaders and assigned them one of these four to be the lead person to drive this. Data center transformation which Marcello who runs the technology business has the lead on that but he is working with representatives from all the business units. Anthony Doye has the lead from our outsourcing business for end-user outsourcing. Dominick Cavuoto has the lead for application modernization from our GI business and Ted Davies has the lead for security but these are truly cross business unit teams doing some exciting work. You are beginning to see some of it announced with our converged remote infrastructure management offering that was announced a couple of months ago. We got some very interesting work going on in cloud particularly in secure cloud. Application modernization, we think, is a real opportunity for us particularly within our clear path install-base and on the security side we continue to make real stride for physical and logical security come together, not only in the business world but also in key government agencies around the world. So I am excited about what we are doing but again it is tough demand environment to be doing this in. We have got to differentiate ourselves in the marketplace with the set of rich offerings that people believe are leading edge. They are providing real value. I think we are making good progress here Jason.

Okay and can you talk a little bit about how customers are reacting to your current financial situation and you mentioned, I think in the press release that outsourcing orders were down significantly year over year in the quarter. Any sense of how much of that is more Unisys specific versus general market conditions because it would be, I guess not illogical to think that some customers might be a little gun shy about entering into a large long term outsourcing deal with a vendor who is under some degree of financial pressure relative to some of their competitors.

Jason, I think compared you are characterizing it correctly for transaction oriented business or shorter term projects. I think the impact that we are seeing is really the broader economic impact but for longer term, multi year outsourcing engagements there is the economic impact but there is definitely a concern on the part of the customers about the balance sheet and that is why I have said it, Janet has said it as well but this is something that we understand, that we are attacking with a sense of urgency with a multi- pronged approach to it but we need to give the customers comfort that not only will they great service and we are going to continue to provide the service that we have a terrific reputation for that they can count on us to be a long term partner.

Last question on the cash flow, obviously you have made some cut backs in CapEx and where the notable working capital improvement sin the quarter. You were barely free cash flow negative in the quarter which by seasonal standards is a pretty good accomplishment. I mean if we should reread into that as we think about the balance of the year that Unisys is in a good position to generate positive free cash flow for the full year.

Jason it is Janet and we have said al along that moving our business model to the point of generating free cash flow is part of the goal in addressing the customer concerns that you articulated in your earlier comment but also what we believe the operating model should look like. We are very pleased with the first quarter performance. We think that is very strong step towards reaching the goal of getting to free cash flow positive and as we said that remains a goal for us for 2009.

One just quick housekeeping item, any pension income in the quarter?

Yes, it is a minor amount. It is about $4 million.

Your next question from [ Sindar Adarjan] – Deutsche Bank [Sindar Adarjan] - Deutsche Bank: Just to follow up on the pension question. What was it last year the same quarter, was it in expense or a credit? I know you discontinued contributions on your stock from a stock perspective on the employee 401K plan. Could you give a year over year comp on how the pension impacted your PNL in the first quarter?

Pension expense or the retirement related expense for the three months ended 2009, in total was $2.9 million. Last year that number was 11.5, I am sorry they are both income. $2.9 maybe clear and that compares to $11.5 million in 2008 first quarter. [Sindar Adarjan] - Deutsche Bank: Was there any restructuring expense that you charged this quarter or any color or anything in the first release? Was there any charge taken for any of the restructuring actually?

From a restructuring standpoint, the actions that we are continuing work, we are looking towards making sure that they have the type of actions that self fund within the quarter. We have not called that a restructuring charge, a major program that is not how we are reducing the cost base right now. We are doing this through self funded primarily with a three month or less return. [Sindar Adarjan] - Deutsche Bank: On the targeted savings of more than $300 million, how much would you say was realized pout of the first quarter on an annualized basis

We have a little bit of seasonality in our business right now and so we remain cognizant in giving you a sense of where we are of that $300 million and how much we expect to realize in 2009. It is the most important measure for us particularly on some of our seasonal businesses like the technology business. Our teams around the world are executing to get it done as quickly as possible so we have made significant move forward against those goals in the first quarter. We have actions continuing to remain in the second and the third quarter. [Sindar Adarjan] - Deutsche Bank: But the first quarter does reflect savings realized against it.

Absolutely! [Sindar Adarjan] - Deutsche Bank: Just moving ion the balance sheet issues. Number one you decided to cash collateralize your credit facility, I mean, these LCs that you had under your credit facility. Does it pretty much mean that you will not be renewing that credit facility or this is just an interim step?

As we said in our 10K filing in the beginning of March, based upon the current credit environment, we do not expect to renew that revolving credit facility at this time. The credit markets are very different than the markets that we entered into or that existed at the time we entered into that agreement. So as part of that agreement as that unwinds in May, we did need to cash collateralized Letters of Credits that have been issued against us and we did $61 million of that in the first quarter [Sindar Adarjan] – Deutsche Bank: Then on your 2010 maturity, you did not talk about pursuing a couple of alternatives. Any timeline you have set for yourselves in terms of when this would be completed?

All I will mention is what we said in the press release. We expect to announce something shortly.

Your next question is coming from Joseph Vafi – Jeffries & Company Joseph Vafi – Jeffries & Company: Janet I know you said your OpEx was down 24% driven by so many actions in FX, could you break that down between those 2 categories of reductions.

Sure, the OpEx was down 24 percentage points, currency was about 8 percentage points of that so 15% of the reduction in SG&A is coming from the actions that we have been working on. Joseph Vafi – Jeffries & Company: That is great to see that but I guess the next question is obviously as you are reducing costs you are having to make some trade-offs between potentially some service provisions and maybe layers of other service. I wonder if you could talk a little bit more qualitatively about how you are approaching that process and what it means for customer service and just your ability to deliver the services for the customers.

Thanks for the question Jo. On the SG&A side it is really not a customer service impact. Predominantly what has been driving our reductions is twofold. First I would say it is unwinding the matrix management structure that the Company has historically had and we talked about this a bit in the past but the Company historically has had management by business unit, management by geography, management by industry and then a series of strategic program offices and change management offices. In addition to that which I think has created a lot of excess overhead for the Company. So we have been clear they were Company by business unit. We have disbanded the strategic program offices and the change management offices. Geographic management is typically now dual roled as also one of the business unit leaders in that geography. It is really from a geographic stand points for the landlord management and support management role as opposed to trigger it as a line management, same thing with the industry. So unwinding the matrix has generated a lot of reductions in higher level management as well as in the supporting staff they have surrounded those management team. And then in other case it has taken really taken the view of what is necessary versus what is desirable from a staff standpoint around all those staff areas that do not have direct contact and support requirements with customers. That is where we have aimed the reduction activity on the SG&A front. On the total cost side there have been cost reductions associated with declining volumes and that is really about just managing the productivity of the service delivery people relative to the revenue opportunity. Joseph Vafi – Jeffries & Company: Okay that is helpful and I guess ion that last point on the cost relative to the service provision capability which is basically in the gross line. Do you feel that that right now is optimized and more of the cost is still coming out of the SG&A line or is there any other efficiency improvements in the cost to services.

I think there are definitely other efficiency improvement opportunities in the cost of the service side. I mentioned a couple of them in my comments, one moving more to remote infrastructure management capabilities opposed to onsite technical support. So moving to more remote and self service technology, they are good for both cost efficiencies and for customer satisfaction. The other is on the labor management side where again we are continuing to drive towards higher use of lower cost labor pool. As I mentioned over the last six months, our low cost labor has an increase as percentage of our population from 15% of the population to 18% and we want to keep driving that.

Your next question is coming from John D. Moore - KDP Investment Advisors, Inc.

Hi I just have two questions; the first is on technology environment. We are dealing with deferrals here. Do you have any sense for how long that might be where customers are saying they… how long they can hold their breath on server buying in particular?

Let me take that one if I may. The biggest impact that we have had in the technology business in the quarter which is typically a fairly weak quarter for us to be begin with has been in Japan. The business in Japan has just been very soft. Obviously you have seen that their economy is having some very rough gust as well. I am reluctant to predict when those customers are going to feel confident enough to execute on new purchases.

Just a housekeeping one on the proposed debt plans here. In terms of the security collateral, if you go down that route. What might that be and how does that pair up with the receivable facility that is outstanding right now.

John, since we have not announced the transaction, I do not want to speculate as to what the transaction may look like. We did say that we intend to look for alternative or involve security and that we will expect to announce shortly. You just have to stay tuned for that but I do not want to speculate on the potential collateral package right now.

Your next question is coming from [Sunny Seccombe] - JP Morgan [Sunny Seccombe] - JP Morgan: Regarding the balance sheet, how much capital base do you need to be well positioned going forward and how much secure debt do you can issue in this environment.

Unfortunately it is the same answer as the previous caller. We have announced that we are considering two alternatives. We expect to issue something on that shortly. It is a function of the market conditions at the time with regard to the amount of demand that exist, the type of transaction. You just have to stay tuned. We expect to issue something shortly. [Sunny Seccombe] - JP Morgan: Could equity issuance be part of any capital risks

I would refer you to the comments that we have made in the press release, talking about secured offering or an exchange. [Sunny Seccombe] - JP Morgan: Could you remind me how much minimum cash do you need on the balance sheet to operate the Company?

What we have said is that we are currently running with more cash than what we need to run the Company globally. That we are working on improving the efficiency of our operating models. We have reduced the cash requirements on that but we have not commented on what the minimum amount of cash is needed to run the business.

Your next question is coming from Mark Kauffmann – [Lazard Capital] Mark Kauffmann – [Lazard Capital]: My question pertains to COD income and that might be raised if you were to do some type of a tender for lease out. I guess specifically, have you explored the opportunity for some of your foreign subsidiaries to actually bake the purchases and tender offers for the US debt. I understand underneath the stimulus package if that would be allowed as well.

Given the fact that we have said that we are considering two alternatives and expect to issue something shortly, I do not want to comment on other potential alternative at this time.

We have no further questions at this time. I would like to turn it back over to our presenters for any additional or closing remarks.

Great! Let me just thank everyone for attending the call. I appreciate your participation very much and we would also just like to take the opportunity to thank all the Unisys employees, they are listening in as well for their hard work and their efforts and let us keep going. Thank you and good bye.