ACS, HRO, Human, Resources, Outsourcing

ACS says end-to-end HRO "key pillar" of growth

ACS Lays Out Growth Strategy; Concludes Inaugural Analyst Meeting With Sights on 2010

DALLAS, May 10 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. (NYSE: ACS) is building on its strengths and aligning its operations to focus on reaching $10 billion in revenue by 2010, company executives told attendees of the company's inaugural industry analyst and advisor meeting earlier this week.

ACS President and CEO Lynn Blodgett and members of his leadership team told about 50 industry analysts and advisors that the company will continue focusing on its expertise in business processes, information technology, and applied technology, and building on its deep client relationships to contribute to its 2010 goal.

"A company does not become a $10 billion dollar company in the same way it became a $5 billion company," said Blodgett. "ACS has a tremendous legacy of growth but we are now moving into the next phase of our expansion. We are aligning our management team, our strategy, and our business model to continue our growth."

He noted that ACS advanced 47 places on the latest FORTUNE 500 list, ranking at #424. The latest ranking is based on the company's fiscal year 2006 revenues of $5.3 billion, a 23% increase over the previous year. ACS is the only FORTUNE 500 Company in the IT Services industry category to improve its ranking. The latest ranking also noted that ACS led the information technology services companies among key financial performance metrics, including:

• Profit as a percentage of revenue (#1)
• Profit as percentage of assets (#1)
• Profit as a percentage of stockholders equity (#1)
• Earnings per share annual growth rate (1996-2006) of 22% (#1)
• Total return to investors (1996 - 2006) annual rate of 13% (#2)
• Overall profit ranking at #3

"I am proud of our ACS team for achieving the #1 ranking in so many key financial metrics," said Blodgett. "This kind of performance does not happen without an engaged and motivated workforce providing world-class service to our clients."

Key pillars of ACS' growth include its traditionally strong transactional business process outsourcing expertise; information technology outsourcing; its end-to-end human resource outsourcing capability; its global customer care capabilities; and finance and accounting outsourcing services. The company will also continue its focus on markets where it has experienced growth, including government sector capabilities -- at the federal, state and local levels; healthcare; transportation; and financial services.

"Seeing such an open and candid management team communicate their market strategy was refreshing," said David Tapper, Director of Outsourcing Utility and Offshore Services for IDC. "For companies to succeed in the services marketplace, it is imperative that they try to continuously evolve. We will be tracking ACS' progress with their newly stated strategy."

Analysts heard how ACS continues to carve out its role as its clients' "operations partner" providing industry expertise and capabilities, technology independence, a dedicated delivery model and a global presence as the company's key attributes.

"A key driver to our growth has been our acquisition strategy because it has introduced us to new and complementary markets, provided new technology to our suite of offerings and added new leaders to our leadership team," said Blodgett. "This approach provides us with the right mix between internal expansion and acquisitions to achieve our growth objectives."

"It is clearly evident that ACS' history and success is built on customer intimacy and this is a cornerstone of their strategy," said Doug Brown, president of Brown-Wilson Group and co-author of the Black Book of Outsourcing. "The message that ACS' executive team shared at this event illustrates their market leadership in a complex, competitive industry."

ACS, a global FORTUNE 500 company with 58,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." ACS makes technology work. Visit ACS on the Internet at http://www.acs-inc.com.

The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

SOURCE Affiliated Computer Services, Inc.

CONTACT:
Investor Relations
Jon Puckett
Vice President, Investor Relations
+1-214-841-8281
jon.puckett@acs-inc.com
or
Media
Kevin Lightfoot
Vice President, Corporate Communications
+1-214-841-8191
kevin.lightfoot@acs-inc.com
both of Affiliated Computer Services, Inc.
Web site: http://www.acs-inc.com
(ACS) 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Affiliated Computer Services' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

Source: Affiliated Computer Services, Inc.