As a leading IT services company in the

industry we founded more than 46 years ago,

EDS delivered on its commitments in 2007

and set new baselines for competitiveness

and operational excellence. We differentiated

our market presence with the best people,

innovative offerings and, most importantly,

an unwavering commitment to quality. We

also expanded our higher-margin services,

honed our capabilities in IT modernization and

leveraged the strength of our infrastructure

and applications capabilities to deliver client

solutions with long-term value.

Behind our successes are the commitment and

passion our employees bring to the job every

day. This performance is in turn supported by

a collective commitment to responsible gover-

nance and conducting business ethically and

with integrity.

We engaged in a number of programs in 2007

to foster employee development and expand

our company’s social awareness and contribu-

tions. We enhanced employee competencies

with regard to leadership, technology and

sales, as well as delivered programs to promote

ethical business practices. We implemented a

semi-annual performance evaluation process,

expanded employee network groups and added

several new work/life benefit programs, among

other initiatives.

We also pursued opportunities to create shared

value in the greater community. For example,

our Nobel Prize Series sponsorship enables us

to apply our technology expertise as we col-

laborate on various programs with the world’s

pre-eminent sponsor of academic achievement

and innovative thinking.

Our commitment to environmental sustain-

ability is another example. Information technol-

ogy’s most significant environmental impact

revolves around the use of energy. Generating

the electricity needed to run and cool data

centers, servers, personal computers and office

equipment creates carbon dioxide, one of the

leading greenhouse gases that affects climate

change. We recognize carbon reduction as a

business imperative. Our environmental sus-

tainability program addresses climate change

Globalization and sustainability trends are increasingly shaping the environment

in which the world’s most successful companies operate and compete. And behind

many of those companies, there’s EDS, the world’s business ally.

letter from Ronald A. Rittenmeyer

by providing ecologically friendly IT service

offerings and engaging employees in recycling

and conserving resources. Also important, this

program will improve our operational efficiency.

Among our other priorities this year, we

strengthened the diversity of our supply chain

and our supplier assessment process. We further

protected our clients’ privacy and security – and

their customers – with advanced encryption

and data loss-prevention technologies. We also

enhanced our connections to communities

and improved the quality and transparency of

our reporting.

Moving forward, we will continue to invest in the

growth of our company, operating as a respon-

sible steward in the 65 countries where we live

and work. We believe that corporate responsibil-

ity gives the fullest meaning to corporate suc-

cess, and we will continue to make that integral

to our culture and global operations.

Clients choose EDS because we are committed

to their success. We state it clearly in our brand

promise: “We deliver on our commitments so

you can deliver on yours.” We believe in, have

passion for and will execute this promise for our

clients and other stakeholders. This promise is

part of our powerful and proud history and de-

fines our character as a global enterprise.

It is my hope that you will find in this report a

window into EDS’ commitment to responsible

action and our progress on initiatives supporting

our clients, communities, employees and other

stakeholders. I feel positive about the progress

EDS has made and our commitment to sustain-

able business practices.

Even as we acknowledge our achievements,

we know there is more work to do. A sus-

tainable future is not only about being a

responsible leader in the industry. It’s also

about promoting corporate responsibility by

example in our increasingly interconnected,

global business ecosystem.

Sincerely,

Ronald A. Rittenmeyer Chairman, President and Chief Executive Officer

EDS and HP Proposed Merger

In May 2008, EDS entered into an agree-

ment with Hewlett-Packard Company

(HP) to be acquired by HP through the

merger of EDS into a wholly owned sub-

sidiary of HP. EDS stockholders approved

the merger in July 2008. As of the date

of this report’s publication, the merger

remains subject to various conditions,

including receipt of certain non-U.S. and

non-EU regulatory approvals and other

customary closing conditions, and is

expected to be completed during the

third quarter of 2008. In the meantime,

it is important to publish this report to

demonstrate our achievements in the

area of corporate responsibility and our

intentions going forward, either as EDS

or EDS, an HP company. EDS and HP

share a commitment to global citizen-

ship and integrity.

Global Reporting Initiative Contents Page (GRI) Index (3.12)*

Introduction 6

Reporting Parameters 6Report Profile 6 3.1, 3.2, 3.3, 3.4Report Scope and Boundary 7 3.5, 3.6, 3.8, 3.9, 3.10, 3.11Information Integrity 7 3.7, 3.13Feedback 7

Company Profile 8 2.1 – 2.10Who We Are 8EDS Operating Model 9Awards, Honors and Recognition 11

Strategy and Analysis 12Setting Priorities 12 1.22007 Progress and Priorities 13 1.2Stakeholder Engagement 14 4.14Looking Ahead 15 1.2Goals and Targets 15 1.2Opportunities 15 1.2Commitments to External Initiatives 15 4.12, 4.13

Client Focus 16Service Excellence 16 PR5Innovation and Thought Leadership 19Global Alliances: Delivering Business Agility 20 2.2Industry Analyst Relations 22

Economic Performance 24Financial Highlights 24 2.8, EC1Credit Ratings 25 2.8Segment Information 26 2.8Service Line Information 26 2.8Beneficial Ownership 27 2.8Coverage of Defined Benefit Plan Obligations 27 EC3

Indirect Economic Impacts 27 EC9

Environmental Sustainability 28 4.11, EN1 – EN30Governance 28Environmental Sustainability Program 28Partnerships and Stewardship 31Selected Accomplishments 31GRI Performance Indicator Information 32Environmentally Conscious IT Equipment Disposal 32Training and Awareness 33Monitoring and Follow-up 33

Global Reporting Initiative Contents Page (GRI) Index (3.12)*

Supply Chain Management 34 EC6, HR2Socially Responsible Business Strategy 34Global Supply Chain Transformation 34Supplier Diversity Program 35Supplier Excellence Dashboard 37Supplier Quality, Screening and Risk Management 37Mentoring Programs and Partnerships 37

Business Practices 38Corporate Governance 38 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.10Ethics and Compliance 42 4.8, 4.9, SO2, SO3, SO4, SO7, SO8, PR9Government Affairs and Public Policy 46 EC2, EC4, SO5, SO6Security, Privacy and Data Protection 48 HR8, PR8Marketing and the EDS Brand 52 PR6, PR7Labor Practices 54 LA4, LA5, LA7, HR4, HR5, HR6, HR7

Workforce Engagement 56Global Workforce Strategy 56Global Recruitment 57 EC7, LA11Executive Talent Management 58 EC7Learning and Development at EDS 59 LA10, LA11Performance Management 63 LA12Diversity and Inclusion 64 LA13Compensation and Benefits 68 EC5, LA3, LA8Workplace Health and Safety 70 LA6Employee Communications 72

Community Engagement 74 EC1, EC8A Culture of Giving 74Programs and Volunteerism 75Community Activities Across the Globe 78Awards and Recognition 80Sponsorships 80EDS Foundation 82

Appendix 1: Stakeholder Engagement 84 4.14

Appendix 2: Goals and Targets 86 1.2

Appendix 3: Opportunities 89 1.2

Appendix 4: Principles Endorsed 91 4.12

Appendix 5: Memberships 92 4.13

Appendix 6: Environmental Performance Indicators 95 4.11, EN1 – EN30

* EDS produced this report in response to stakeholder interests and certain elements of the GRI Sustainability Reporting Guidelines. The GRI Index on this table of contents cross-references portions of the report to those guidelines. All or portions of those guidelines may be covered by the referenced section of this report. In addition, 4.15, 4.16 and 4.17 are addressed throughout the report.

6

Globalization and sustainability trends continue to add new

dimensions to the business world. Corporations today are

expected to demonstrate positive values and deliver results in

ways that benefit their stakeholders, the global community and

the planet. EDS recognizes and embraces this responsibility.

EDS is committed to transparency in corporate responsibility

reporting. In recognition of this, we continue to be influenced

by the Global Reporting Initiative’s (GRI’s) G3 Sustainability

Reporting Guidelines in determining relevant content and per-

formance metrics to include. We will attempt to incorporate

more of these guidelines in future reporting. For more information about the GRI, visit

http://www.globalreporting.org.

introduction

reporting parameters

The EDS 2007 Corporate Responsibility Report

is a factual account of how we performed in a

number of critical areas, as well as our proactive

commitment to improving in all areas in 2008.

The report theme is “The Business Ally Behind

Our Clients, Communities and People: EDS Deliv-

ers on Its Commitment to Responsible Action.”

It reminds us of our accomplishments, as well

as the need to continually progress, aspire and

dedicate ourselves to earning and maintaining

our stakeholders’ respect.

The men and women of EDS are proud to share

the results of our commitment to corporate

responsibility and how we are addressing and

prioritizing the economic, social and environmen-

tal challenges and opportunities we face in our

global business operations.

We invite you to take a look at the many facets

involved in EDS delivering on our commitments to

the groups we value the most.

Report Profile

Reporting PeriodThis report focuses on EDS operations during the pe-

riod of January 1, 2007, through December 31, 2007.

Some information reported may have occurred either

before or after 2007. Such information is already in

the public domain and is referenced here for report

clarity and completeness.

Reporting CycleEDS reports its corporate responsibility results

annually. This is our fourth year to report our

progress. Our most recent previous reporting was

available exclusively online.

Our Corporate Responsibility Report can be viewed

at http://www.eds.com/about/corporate/.

CurrencyAll references to currency are in U.S. dollars

unless otherwise noted.

ContactGrady Searcy

Vice President, Corporate Responsibility

MS H3-5F-46

5400 Legacy Drive

Plano, Texas 75024

Phone: 1 972 797 9890

grady.searcy@eds.com

7

Report Scope and BoundaryEDS has operations in 65 countries, and our report-

ing addresses how corporate responsibility is an

important part of our business strategy. Our reporting

places a priority on the core economic, environmental

and social indicators that are most directly affected

by our business.

We continue to be influenced by proactive interactions

with our stakeholders and use their input to help guide

our corporate responsibility efforts. This report is

intended for stakeholders in the following groups that

have expectations and interests regarding the progress

we are making toward our sustainability goals:

EDS clients, potential clients, suppliers •and alliance partners

EDS employees•

Socially responsible investors, researchers •and analysts

Corporate responsibility professionals•

Governments•

Nongovernmental organizations•

Academic institutions•

The scope of our corporate responsibility reporting

spans EDS’ global operations, including our consoli-

dated subsidiaries, for comparability from year to year.

For more information about our consolidated financial

reporting on EDS and our controlled subsidiaries,

review the Principles of Consolidation statement on

page AR-31 of our 2007 Annual Report.

Numerous data measurement, collection and consoli-

dation techniques were used to compile our report.

Instances where information was not presented are

noted and explained.

There are no material restatements of information

provided in earlier reports or changes in reporting

scope, boundary or measurement methods applied in

this report.

Information IntegrityEDS management prepared, reviewed and verifies the

integrity of the information contained in this report.

We use a system of internal controls, including a

comprehensive verification process involving internal

subject-matter experts from multiple geographies,

functional areas and business units. As a result, we

believe this report is an accurate and balanced rep-

resentation of EDS operations relative to corporate

responsibility for the year ending December 31, 2007.

FeedbackWe invite you to share your feedback on EDS’ corpo-

rate responsibility reporting. The feedback we receive

from our stakeholders helps us to continually improve

the quality and relevance of our reporting. You can

send your inquiries, opinions and comments to us at

info@eds.com.

8

Com

pany

P

rofi

le

Who We AreAs of December 31, 2007, EDS and its subsidiar-

ies employed approximately 139,000 in the United

States and 65 other countries around the world.

Approximately 38 percent of our employees are

located in North America; 25 percent in Europe,

Middle East and Africa; 22 percent in Asia;

10 percent in Latin America; and 5 percent in

Australia and New Zealand.

For more information about EDS in specific coun-

tries, visit http://www.eds.com/about/locations/.

EDS is an independent, publicly held corporation.

Its common stock is listed on the New York Stock

Exchange (NYSE) and the London Stock Exchange.

The NYSE Ticker symbol is “EDS.” As of December

31, 2007, there were approximately 99,240 record

holders of common stock.

What We DoEDS provides the best solutions for clients to

maximize return on their IT investments. Our deep

industry knowledge and unique ecosystem of Agil-

ity Alliance partners and global suppliers enable us

to provide clients with innovative ideas that help

them improve productivity and security. We deliver

on our commitments, so clients can build strong re-

lationships with their customers, achieve profitable

growth and win in the marketplace.

How We Do ItOur portfolio is built around innovative offerings

in application maintenance and development,

business process outsourcing and infrastructure,

including desktop services, hosting, storage and

networking. Our services are delivered on the EDS

Agile Enterprise Platform, a flexible network-based

utility architecture. We use our next-generation

global delivery system and EDS Best Shore® strat-

egy to ensure high-quality, cost-competitive ser-

vices are provided from the optimal mix of onshore,

nearshore and offshore locations. This enables

our clients to respond quickly to changing market

dynamics and increase their competitiveness.

EDS is a leading global technology services company delivering business solu-

tions to its clients. EDS founded the IT outsourcing industry more than 46 years

ago. Today, we deliver a broad portfolio of IT and business process outsourcing

services to clients in the manufacturing, financial services, healthcare, com-

munications, energy, transportation, and consumer and retail industries and to

governments around the world.

companyprofile

9

Our Related Companies

ExcellerateHRO is a full-service human resources

outsourcing (HRO) company providing services to

more than 400 clients globally. ExcellerateHRO is

the jointly owned HRO business of EDS and Towers

Perrin, combining the technology and business

process expertise of EDS with Towers Perrin’s HR

domain expertise. This combination uniquely posi-

tions ExcellerateHRO to help clients optimize their

investment in HR processes and programs. http://

www.excelleratehro.com

EDS Operating ModelEDS is a services company, and we recognize the

importance of relationships as we work to become

our clients’ trusted business ally. Internal rela-

tionships are just as important, and in a series of

corporate realignments in 2007, EDS strengthened

our operating model to better support our clients.

Corporate leadership sets the strategy and

standards and provides tools for empowering re-

gional teams. The regional teams manage service

quality and improve client satisfaction. Capability

organizations such as application services and

global ITO services provide strategic direction

across leveraged frameworks and platforms.

EDS Global Operating Regions

Wendover, a wholly owned subsidiary of EDS, sup-

ports a wide spectrum of consumer lending products

for EDS in the United States with the full continuum

of services, including administration, servicing

and collections. Established on February 14, 1986,

Wendover offers complete credit services support

to help lending institutions thrive in a competitive

marketplace. http://www.wendover.com

Services are delivered to clients around the world

via regional hubs that enable the use of common

tools, processes and standards that make it faster

and easier for clients to do business with us. The

sales organization and EDS’ account executives

drive growth.

EDS account executives also provide clients with a

single point of authority and accountability for all

EDS services. They are supported by the company’s

full resources – which include delivery expertise,

sales knowledge, industry expertise and business

support – to help clients transform their businesses

and ensure EDS’ operational excellence.

10

Com

pany

P

rofi

le

MphasiS Limited operates as an independent EDS

company. Based in Bangalore, India, MphasiS pro-

vides applications, business process outsourcing

and information technology outsourcing services

through a combination of technology know-how,

domain and process expertise with a firm focus on

service excellence and client business performance

improvement. Its professional workforce in India and

around the world serve global clients in multiple in-

dustries, including financial services, transportation,

technology, manufacturing, telecommunications and

healthcare. MphasiS delivers client value and qual-

ity services at a competitive cost within EDS’ Best

Shore® strategy. http://www.mphasis.com

Based in Portland, Oregon, Saber Government Solu-

tions has deep customer relationships with state

and local government entities across the United

States, providing software and services that under-

pin essential functions such as voter registration,

election management, public retirement programs,

human services, public health services, motor

vehicles, unemployment insurance, and forms and

document processing. Saber Government Solutions

is one of the world’s fastest-growing providers of

software products and services that enable state

and local governments to better serve citizens.

http://www.sabercorp.com

Significant ChangesThe following significant changes in size, structure,

ownership and operations occurred in 2007:

We opened a global service center in Wuhan, China, •and consolidated five delivery sites into one at our

new Brazil headquarters near São Paulo. We ended

2007 with 41,000 employees in high-quality, lower-

cost Best Shore® delivery locations, including India,

China, Brazil, Argentina, Hungary and Malaysia.

We completed the acquisition of Saber Government •Solutions, a leading provider of software and

services to U.S. state and local governments. The

acquisition provides us with leverageable platforms

for state and local government agencies on a global

basis.

We completed the merger of Electronic Data •Systems (India) Private Limited, our wholly owned

Indian subsidiary, into MphasiS, an EDS company.

We acquired RelQ Software Private Limited, a •software testing company based in Bangalore,

India. The acquisition of RelQ enhances our global

applications testing, validation and verification, and

quality assurance services.

EDS and Chinese officials at the November 8 ribbon-cutting

ceremony for the Wuhan, China, global service center.

11

Awards, Honors and Recognition

EDS was named the top company in the 2007 VARBusiness 500 ranking of IT

solution providers.

EDS was ranked No. 1 on the “Top 50 Best Managed Global Outsourcing Vendors”

list compiled by the Brown-Wilson Group for The Black Book of Outsourcing from

Wiley Publishers.

EDS was included in the 2007 Dow Jones Sustainability World Index and North

America Index. These global indexes track the financial performance of the leading

sustainability-driven companies worldwide.

EDS was included in the 2007 KLD Domini 400 Social Index (DS400), a benchmark

for U.S. equity portfolios that selects companies based on their environmental,

social and governance performance.

EDS was selected by the U.S. Department of Defense to receive the Inaugural

Prime Subcontracting Award for excellence with Service-Disabled, Veteran-Owned

Small Businesses.

EDS Australia was awarded the “2007 Frost & Sullivan Market Leadership Award

for Enterprise Outsourcing in the Banking and Financial Services Industry.” EDS

Australia was awarded the “2007 IDC Award for Best Practices in Infrastructure

Outsourcing.”

For the third year, CRM Magazine, one of the foremost customer relationship

management publications, named EDS a leader in the Outsourcing Services

category for its 2007 Service Awards.

EDS was recognized with a 2007 InfoWorld 100 Award for its work with the U.S.

Department of Agriculture’s Animal and Plant Health Inspection Service. The EDS-

developed Phytosanitary Certificate Issuance and Tracking system was named one

of the best IT projects of the year.

EDS received three out of 10 Best Outsourcing Thought Leadership Awards, presented

by the Outsourcing Institute, for its January 2007, Issue 4 (“Rethinking the Path to

Innovation”) of synnovation, the EDS Agility Alliance publication.

synnovation also won the Custom Publishing Council’s Gold Pearl Award for best overall

editorial for publications with a circulation less than 50,000.

Gartner’s MarketScope for Data Center Outsourcing, North America report, gave EDS a

“strong positive” rating.

For the fourth consecutive year, eds.com achieved the No. 1 ranking for online customer

service among high-technology and computer firms in the Customer Respect Group’s

second quarter 2007 “Online Customer Respect Study.”

EDS was ranked #4 in Worldwide Application Management (IDC, January 2007).

EDS was honored at the 2007 Microsoft worldwide Partner Program Awards, winning

Partner of the Year for Advanced Infrastructure Solutions, Systems Management.

For the second year in a row, EDS ranked first on Fortune magazine’s IT Services

industry listing, part of the magazine’s annual list of the 500 largest U.S. companies.

For more information about EDS awards and recognition,

visit http://www.eds.com/about/awards.

12

Str

ate

gy

an

d A

naly

sis

Setting PrioritiesCorporate responsibility and sustainability are

increasingly embedded in how we do business.

As a global enterprise, we are concerned with

many environmental, social and economic issues.

We prioritize them by considering our business

strategy and by assessing their importance to our

various stakeholders.

Our prioritization of corporate responsibility is-

sues takes into account the following factors:

Our enterprise business goals•

Business opportunities inspired by social and •environmental stewardship (for example, eco-

friendly client service offerings)

Consideration of the strength and extent of •client and other stakeholder views

Opportunities to strengthen employee •engagement, client trust and our brand identity

Risk mitigation regarding our operations •and reputation

The global technology services market is more competitive than ever before.

Likewise, sustainability trends are continuously changing the environment in

which we operate. We are embracing these changes on our continuing journey

toward sustainable market leadership.

In working with and serving the needs of our many stakeholders, EDS focuses

on the longer-term impact on our realm of influence. We pursue opportunities

to create shared value where intersections exist between social and environ-

mental priorities and our business goals.

It is EDS’ ongoing commitment to make acting responsibly a key component in

all our relationships, plans, strategies and programs and to work toward deliver-

ing results that leave a more lasting, positive mark.

strategy and analysis

Governance MechanismsCorporate responsibility is a comprehensive set

of centrally led, regionally managed policies and

programs aligned to our business principles and

woven into the fabric of EDS, central in operations

and decision-making processes. In areas such as

environmental sustainability, diversity and phi-

lanthropy, executive councils provide oversight,

strategic support and guidance in identifying risks

and opportunities and setting policies, priorities

and direction on major initiatives.

13

2007 Progress and PrioritiesFor EDS, 2007 was a year of solid growth and execution against our plan to regain market leadership in the

IT services industry we invented more than 46 years ago. We set new baselines for competitiveness and

operational excellence and made significant progress in these areas, among others:

Expanded our higher-margin services – •We increased our applications development,

systems integration and consulting services in

2007 and formed an SAP Consulting practice

and a global testing practice. We also positioned

EDS for increased success in government and

the application services market.

Improved our cost structure –• We added

capacity in India, China, Hungary and Argentina,

increasing our Best Shore® headcount by

28 percent to 41,000 employees. We reduced

our general and administrative expenses by

5 percent. Overall productivity drove year-over-

year margin improvement.

Drove operational excellence –• Our focus on

quality yielded significant dividends. Severe

outages fell by 74 percent year over year. Our

enterprisewide deployment of Lean Six Sigma

drove quality and client service, saving millions

and contributing to higher client ratings for

service excellence and innovation.

Developed our talent, fortified our leadership –•

Our employees completed nearly 3 million hours

of training to further develop their technology

skills, business acumen and ability to serve

clients. We strengthened our leadership and

sales development programs.

Grew our core business and continued to win in •the marketplace – We realized profitable growth

with $22.1 billion in revenue, signed $19.5 billion

in contracts globally across several industries,

improved our operating margin and generated

nearly $900 million in free cash flow – marking

a five-year upward trend.

Intensified our environmental action – • We took

significant steps to understand our greenhouse

gas and resources impact and began to lessen

those impacts. We established environmental

governance, initiated work to develop the next

generation of data centers and implemented

processes and plans to better understand our

carbon footprint and to develop a strategy to

reduce it.

This progress enables EDS to enter 2008 driving client and shareholder value through differentiation,

operational excellence and execution against four business principles: profitable growth, operational

excellence, financial discipline and personal responsibility.

Profitable Growth Operational Excellence

Expand and improve •Best Shore® delivery

Defend the base and grow the •applications business

Eliminate unnecessary and •duplicate spending

Focus on value – “competitive” •does not mean “low price”

Relentlessly pursue quality •and customer satisfaction

Deliver what you promise •

Operate consistently on a global basis •

Strive for zero outages/defects •

Bring clients innovative solutions •

Constantly improve our work •efficiency and effectiveness

Financial Discipline Personal Responsibility

Focus on free cash flow, margin and •revenue

Reduce costs every day •

Exceed financial expectations •

Ensure positive return-on-investment •(ROI)

Foster teamwork and cooperation •

Bring passion to your job every day •

Own and be accountable for your •decisions and results

Continuously improve your skills •

Our Business Principles

14

Str

ate

gy

an

d A

naly

sis

EconomicPerformanceand MarketPresence

Diversity andInclusion

ServiceExcellence and

Client Innovation

WorkforceEngagement

SupplierDiversity and

Inclusion

IT Security,Privacy and

Data Protection

EnvironmentalSustainability

CorporateGovernanceEthics and

Compliance

CommunityEngagement and

Philanthropy

Supply ChainManagement

AlliancePartnerships

WorkplaceHealth and

Safety

Environmental

Economic Social

EmployeeDevelopmentand Benefits

Stakeholder EngagementEDS continues to be influenced by proactive interactions with our stakeholders and uses their input to

help guide our corporate responsibility efforts. Appendix 1: Stakeholder Engagement contains a list of our

main stakeholder groups and describes how we engage with each. Additional engagement perspectives are

included throughout this report.

Corporate Responsibility PrioritiesCorporate responsibility at EDS covers a wide range of issues. Our key priorities, which complement EDS’

business strategy, include the following:

Responsible governance and conducting •business ethically and with integrity

An environmental sustainability program that •serves the long-term interests of our clients,

engages our employees and reduces the

environmental impact of our operations

IT security, privacy and data protection for •EDS and our clients

A commitment to provide the highest-quality •goods and services through a supplier

community that is representative of the

clients and communities we serve

Workforce development, engagement •and inclusion

A focus on community engagement through •education and bridging the digital divide

These priorities are reflected in our report and in our goals and targets for 2008.

EDS Business Strategy

15

Looking AheadMoving forward, we will continue to invest in improv-

ing our cost competitiveness, expanding our sales

capabilities, growing our applications services

business and improving our service quality, client

satisfaction and client innovation. We expect that

the successful execution of these initiatives in 2008

will position us for improved financial performance,

respect from clients, optimistic reviews from indus-

try analysts and continued success at winning new

business in 2009.

Electricity consumption is at the core of our busi-

ness and is a major component of our environmental

impact. We will take aggressive measures to increase

the energy efficiency of our operations. As part of

our environmental strategy, we plan to increase the

efficiency of our data centers and operations to im-

prove our business, reduce our costs and help

our environment.

Our position as a business ally in the marketplace

enables us to promote responsible action and sus-

tainable solutions for our own operations, our clients

and the communities in which we operate. EDS will

be guided by our business principles and continue to

innovate in ways that benefit local ecosystems and

the global economy. That’s good for business, people

and our planet.

Goals and TargetsThe goals listed in Appendix 2: Goals and Targets

reflect our commitment to quality and to continually

improving sustainable business practices and perfor-

mance in priority areas where we can have a positive

impact. We will evaluate our performance and report

our progress toward these goals next year.

OpportunitiesEDS has made progress in the area of corporate

responsibility, but we also recognize the need to do

more. The opportunities listed in Appendix 3: Oppor-

tunities reflect areas where we intend to increase our

efforts and report our progress in the future.

Commitments to External InitiativesEDS has a tradition of commitment to and engage-

ment in external initiatives.

Principles EndorsedAppendix 4: Principles Endorsed contains examples

of externally developed economic, environmental

and social charters, principles, or other initiatives to

which EDS subscribes or endorses.

MembershipsAppendix 5: Memberships contains examples of mem-

berships in associations or national/international

advocacy organizations in which EDS has positions in

governance bodies, participates in projects or com-

mittees, provides substantive funding beyond routine

membership dues or views membership as strategic.

16

Clien

t Fo

cus

Service Excellence

In the complex world of IT services, addressing key business functions such as client loyalty, customer

relationship management and process reengineering is an especially tough challenge. EDS has stepped up

to this challenge in a way that distinguishes us from competitors through our Service Excellence program

and client focus.

Our Service Excellence program has created new frontiers of learning in enterprise transformation and

performance management practices. By opening the door to our clients for candid, collaborative dialogue,

we’re far ahead of the curve in measuring and assessing clients’ needs, desires and possibilities.

For more information about EDS’ Service Excellence program, visit http://www.eds.com/services/excellence/.

Service Excellence DashboardThe Service Excellence Dashboard is the cen-

terpiece of the program. We use a Web-enabled,

real-time information system to ensure we know

the quality of service we deliver to our clients at

all times. The dashboard is the cornerstone of

reporting, feedback and action throughout the

company. It is accessible to all EDS employees,

as needed, as well as EDS’ senior and executive

leaders responsible for driving change.

Client DashboardThe Client Dashboard enables any client to monitor

the current delivery and performance EDS is pro-

viding that client. From their desktops, our clients

use a private customized view of the dashboard to

monitor EDS performance and offer their perspec-

tives. Clients can provide real-time, unfiltered

feedback to ensure EDS is focused on continuous

improvement activities for them.

As our clients’ business ally, we are committed to delivering results. This com-

mitment is reflected in our focus on initiatives such as our Service Excellence

program, the value-adding alliances we form with other industry leaders and

our focus on thought leadership. We promote the strengths that differentiate us

in the marketplace through relationships with industry analysts who influence

the market and a variety of other efforts.

clientfocus

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2007 Performance

Voice of the Client

Client focus begins with honest communication.

Through our Voice of the Client (VoC) program and

Client Feedback Facilitation Workshops, real-time

information flows from our clients to EDS account

teams to EDS’ executives for immediate visibility

and action. Our program requires action plans to

be developed and executed based on the feedback

we receive. This supports our goal of continuous

improvement in the services and solutions we

deliver to clients.

In 2007, more than 98 percent of EDS’

client organizations – including more than

2,000 client leaders – provided direct,

unfiltered feedback through the VoC pro-

gram. EDS’ client loyalty segmentation

helps to predict financial performance

and gauge how clients perceive EDS’

performance overall and in five related

categories – referenceability, renew-

ability, value, competitive advantage and

quality. Client responses determine the

Service Excellence Loyalty Segment: Top

Box, Promising, Neutral or In Jeopardy.

The loyalty segment is re-established

each time we receive new feedback from an

EDS client.

The 2007 results showed a 50 percent increase in

“Top-Box” clients. In fact, the loyalty segments for

more than 82 percent of these client organizations

were either “Top-Box” or “Promising.” Addition-

ally, 92.5 percent of the clients rated EDS’ overall

performance as “Good” or “Excellent.”

Also in 2007, for the first time, innovation was rec-

ognized as a key competitive differentiator among

clients who were either interviewed or surveyed

in 2006 and 2007. EDS’ focus on added client in-

novation was acknowledged by many clients and

resulted in a significant increase in the number of

clients rating EDS “Excellent” in innovation.

For more information about EDS’ Voice of the

Client program, visit http://www.eds.com/services/

excellence/listening.aspx.

Client Surveys

Clients provide EDS direct feedback via client sur-

veys. These online surveys, initiated by the client

or EDS, eliminate red tape, enabling our clients to

submit real-time performance evaluations directly

to responsible EDS parties. Clients are encouraged

to submit at least one survey per year. Surveys

are available in 13 languages and include a set of

20 standard questions. Clients may also choose to

complete a paper survey in one of 19 languages.

Client Interviews

Client interviews are face-to-face discussions

between an independent representative from the

Service Excellence team and two to five client

representatives, including CEOs and other key

decision-makers. The interview includes open-ended

questions about EDS’ performance, deliverables

and service quality, as well as areas for improve-

ment, expectations and future objectives.

In 2007, EDS targeted nearly 160 client organiza-

tions for individual face-to-face VoC interviews

globally with its top clients. Based on feedback

received in the client interviews and surveys,

our clients recognize the strong EDS and client

relationships, account leader capabilities, delivery

operations, talented resources and

technical expertise.

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EDS leaders present the Oklahoma Healthcare Authority

the 2007 Service Excellence Cup. This award recognizes

EDS clients and their respective EDS support teams who

most clearly demonstrate excellence in creating and

maintaining mutually valuable relationships. From left:

Jeff Heller, EDS vice chairman; Karen Nimocks, Scott

Mack and Ron Hanley, EDS account leaders;

and Ron Rittenmeyer, EDS chairman, president and CEO.

Organizational ResponsibilityThe Service Excellence program responsibility is aligned within EDS’ Quality Management organization, which is

part of the Service Delivery Operations organization. The Service Excellence organization defines the program’s

tools, guidelines, standards and operational best practices. In collaboration with EDS’ Regional Teams and leaders,

we are able to deploy the program to all areas of EDS and to our clients.

Quality Management at EDSIn addition to the core Service Excellence program, other key components of EDS’ Quality Management focus in-

clude the following:

RecognitionEDS’ steadfast commitment to quality and its winning approach to service delivery are the cornerstone of Service

Excellence and have proved to be differentiators in the industry. In 2007, EDS at large was recognized and honored

for its delivery and client satisfaction by multiple stakeholder groups, including Forrester Research, Gartner and

VARBusiness. In addition, clients and EDS organizations are also recognized to raise awareness of what it means to

deliver excellence to our clients.

Global Management Systems enable disciplined design and execution of standard processes that incorporate •industry best practices for reliable and innovative global service delivery. EDS follows an integrated quality

management blueprint that enables consistent delivery of services and compliance with international

standards for quality, security, privacy and service management for clients across the globe.

EDS maintains third-party certification of its Quality Management System and has a long history of compliance:

ISO9001 for Quality Management −since 1992; ISO20001 for IT Service

Management since 2005

BS7799 – precursor to ISO27001 Data −Security since 2003

ISO14000 for Environmental Management −since 1998

SA8000 – precursor to ISO26000 for −Social Responsibility since 2007

Additionally, EDS helps formulate industry quality standards for service providers through service on the

Global Information Technology Senior Management Forum Management Board, as Contributing Member

of the Carnegie Mellon University IT Services Qualification Center for the development of the eSourcing

eSCM-SP model, as member of the ISO 20000 Panel, as member of the IT Services Qualification Center

advisory board and as a Capability Maturity Model Integration® early adopter and SIE Partner for CMMI

training and appraisal services.

Lean Six Sigma is one of EDS’ continuous improvement programs that apply process improvement tools •and techniques to bring quality to everything we do.

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Innovation and Thought Leadership

Innovation requires a commitment to fundamental research, a culture that encourages risk-taking and a free flow of

ideas. EDS has a long heritage of encouraging collaboration among the world’s best and brightest technology and

business experts. Today, with our alliance partners, we put the combined weight of an estimated $20 billion in an-

nual research and development toward bringing innovative new products and services to the market and our clients.

For more information about technology innovation at EDS, visit http://www.eds.com/services/innovation.

EDS Fellows ProgramThe title of EDS Fellow is a distinguished designation

given to EDS employees who are leading industry and

subject-matter experts. These thought leaders are top

performers with the proven ability to convert their

outstanding knowledge into business solutions for EDS

and its clients. They encourage creativity and innova-

tion, identify sponsors for new ideas, enhance the

company’s external image, and promote companywide

networking for innovation and thought leadership.

In 2007, EDS Fellows worldwide had more than 200

external presentations, speaking engagements,

publications and media/press interviews. The EDS

Fellows also developed EDS’ strategy for applications

modernization, establishing a pilot applications mod-

ernization class being reused globally. In addition, the

EDS Fellows spent more than 5,000 hours working

on client engagements. This included developing and

deploying innovation solutions, acting as client tech-

nology officers for multiple clients across numerous

industries, and supporting the Innovative

JumpStart Program.

EDS Fellows’ leadership reports to the

Technology Governance Board. Individual

EDS Fellows hold various leadership roles

throughout the company, including chief

risk officer, chief technologist, enterprise

client technology officer and corporate

and industry strategist.

For more information about the EDS Fel-

lows, visit http://www.eds.com/services/

innovation/fellows.aspx.

EDS Distinguished Engineering ProgramOur global Distinguished Engineering

Program (DEP) is designed to recognize and reward

current EDS employees who demonstrate the ability

to consistently apply technical expertise and create

reusable best-practice products in EDS IT or industry-

specific areas while engineering and building end-to-

end client solutions.

The EDS Fellows and DEP University ConnectionsThe EDS Fellows and Distinguished SEs maintain active

connections with 64 universities around the world.

These relationships range from board-level activities

to defining curriculums that develop the skills of the

workforce of the future through student internships

and mentoring.

EDS’ Next Big Thing BlogEDS’ Next Big Thing Blog is written by the EDS Fellows

and discusses the future of technology. The blog is a

vehicle for some of our leading technology experts to

candidly discuss trends, attitudes and the impact of

technology on our lives. In 2007, the blog averaged

20,000 hits per month.

For more information about the Next Big Thing Blog,

visit http://www.eds.com/sites/cs/blogs/eds_next_big_

thing_blog/default.aspx.

PatentsEDS has more than 500 awarded and pending patents

available for use in its solutions for clients. In 2007, 26

patents were filed by the EDS Fellows; 18 patents

were issued.

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EDS Agility AllianceThe EDS Agility Alliance mission is to create a seamlessly integrated platform that delivers robust, relevant and

value-driven technology services to clients around the globe. At the core of the alliance is the deep collaborative

engineering that occurs between EDS and its partners.

Global Alliances: Delivering Business Agility

Many companies today suffer from a disconnect between the speed of business and the speed of IT. Enterprises

want to drive growth and fuel competitive advantage while containing costs and increasing operating efficiencies.

It takes business agility – which, in turn, relies on a supporting IT infrastructure that flexibly adapts to changing

business priorities.

The foundation of EDS’ next-generation service delivery

strategy is a flexible, network-centric utility architec-

ture platform that helps clients respond quickly to

changing dynamics and increase their competitiveness.

We call it the EDS Agile Enterprise Platform. With this

platform, we provide fully managed services that op-

timize applications and infrastructure. As a result, our

clients can optimize processes, turn fixed IT costs into

variable costs and reinvest those dollars to grow the

business and drive further innovation.

To design, build and manage the Agile Enterprise Plat-

form, we created a unique ecosystem of partners. The

EDS Agility Alliance combines market-leading infra-

structure, application and business process providers

chartered with driving industry innovation and cost

leadership. At the core of this alliance is the deep col-

laborative engineering that occurs between EDS and

its partners.

For more information about EDS global alliances,

visit http://www.eds.com/services/alliances/.

The partners included in the EDS Agility Alliance rep-

resent broad-based companies recognized globally for

their quality, products and value to clients. Collectively,

EDS and its EDS Agility Alliance partners collaborate

to design, build and run a market-leading services

platform and develop technology-based services that

deliver tangible results to our clients.

EDS Agility Alliance Development Centers and In-

novation Centers provide an environment for deeper

understanding of and collaboration with our partners.

These centers also offer clients access to EDS, partner

community and industry thought leaders who are fo-

cused on extracting real business value from emerging

technologies.

For more information about the EDS Agility Alliance

and our partners, visit http://www.eds.com/services/

alliances/agility/.

Top Gun ProgramEDS Top Gun is a total immersion program designed to provide an intensive three-month technical opportunity to

nominated EDS senior-level architects. The program is designed to ensure EDS architects around the globe have

deep, hands-on experience with our partners’ technologies and products today and a clear vision of the road map

for tomorrow. The program is an investment by EDS and its alliance partners to strengthen those alliances by pro-

viding an in-depth, focused program for participants.

Top Gun graduates represent Australia, Brazil, Canada, several European countries, New Zealand and the Americas.

The majority of Top Guns work in applications delivery and production engineering.

21

2007 SuccessesThe EDS Agility Alliance continues to produce significant business results for EDS, our partners and our clients:

EDS Agility Alliance partners had an impact on $10.3 billion of EDS revenue.

Alliance partners had an impact on 533 winning pursuits – including 68 with new customers.

More than 1,200 EDS and alliance partner employees collaborated at two EDS Agility Alliance Development Centers

to enable joint expansion of the EDS Agile Enterprise Platform.

EDS Agility Alliance partners contribute to more than 40 percent of EDS’ portfolio of standard offerings.

Collectively, the partners in the EDS Agility Alliance spend nearly $20 billion annually in research and development

to bring innovative new products and services to the market and our clients.

In 2007, the partners embedded more than 260 full-time resources dedicated to EDS’ product development, sales,

marketing and operations globally.

Together, EDS and the EDS Agility Alliance partners conducted more than 13,000 training days for EDS employees

on the latest technologies and advancements.

EDS works continuously to earn as many available partner certifications as possible. To date, EDS has been

awarded more than 36,000 certifications from our partners, including Cisco, EMC, Oracle, Microsoft, SAP and Sun

Microsystems.

EDS was named 2007 Microsoft Partner of the Year for Advanced Infrastructure Solutions,

Systems Management.

synnovation MagazineIn January 2006, EDS and its EDS Agility Alliance partners began publishing a professional thought leadership jour-

nal, synnovation. The publication captures and presents original intellectual capital, collaborative insights and fresh

perspectives on the trends and issues that affect enterprises and shape the outlook of their industries.

In the past two years, synnovation has been recognized with eight awards for

design excellence and forward-thinking content, including these awards in 2007:

Custom Publishing Council Pearl Award – Gold Award, Best Overall Editorial•

The Outsourcing Institute Best Outsourcing Thought Leadership Awards•

Best in Show, Outsourcing Thought Leadership 2007 −

Procurement Winner, Outsourcing Thought Leadership 2007−

HR Winner, Outsourcing Thought Leadership 2007 −

IT Runner-Up, Outsourcing Thought Leadership 2007−

For more information about synnovation, visit http://www.eds.com/services/

alliances/agility/synnovation/.

EDS and our Agility Alliance partners share a

commitment to improving the communities in

which we work. In this photo, volunteers from

EDS and EDS Agility Alliance partners EMC and

Oracle help construct a home for Habitat for

Humanity in Dallas, Texas, during EDS’ Global

Volunteer Day initiative.

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Our Target AudienceEDS targets a core set of industry analyst firms, known as

the Tier One firms, which are most influential in the mar-

ketplace. These firms include Forrester, Gartner, IDC and

Ovum. We also target a set of Tier Two analyst firms with

influence in particular market niches. These firms include

AMR Research, Datamonitor, PAC and Yankee Group.

Engaging Our Analyst AudiencesThe corporate IAR team maintains an Annual Industry

Analyst Engagement Plan that details our planned inter-

actions with the Tier One and Tier Two analyst firms and

with the high-priority analysts within those firms.

EDS holds several events targeted at the general industry

analyst community to provide regular updates related to

our strategic direction and to enable analysts to meet

with members of the EDS senior leadership team. These

events are known as EDS Industry Analyst Summits. We

also sponsor events held by industry analyst firms to

directly reach analysts and EDS clients/prospects who

attend the events. Gartner and Forrester hold the most

influential events.

Additional information and support for the industry

analyst community is located on our Web site at

http://www.eds.com/news/analyst/.

Industry Analyst Relations

EDS Industry Analyst Relations (IAR) is an outbound market-influencing function of the corporation. Industry ana-

lysts are important to EDS, because our clients and prospects look to analysts for IT services sourcing advice, includ-

ing recommending preferred service providers.

It is in EDS’ best interest to ensure industry analysts have complete and accurate information about our capabili-

ties, the value we provide to clients and our progress in the marketplace. Industry Analyst Relations’ scope is global,

crosses each of the key eight vertical industries EDS targets and spans the spectrum of our services portfolio. A

corporate team sets EDS’ IAR direction and manages the relationships with key analyst firms.

The corporate team engages EDS’ regional, vertical industry and portfolio marketing teams to ensure our messages

are regularly and effectively communicated to the analyst community. Corporate IAR is led by the global director

of Industry Analyst Relations. This position reports to the vice president of third-party intermediaries and the IAR

team, who report to EDS’ chief sales officer.

MonitoringIndustry Analyst Relations consistently monitors the

effectiveness of its program using a variety of metrics,

including these:

Report mentions – the number of times EDS and •our leading IT services competitors are mentioned

in key analyst research

Report tonality – the tone in which EDS and •competitors are mentioned in key analyst

research (positive, negative or neutral)

EDS’ performance in important analyst rankings – •generally Gartner Magic Quadrants, Forrester

WAVEs and Ovum Navigators, which are analyst

firms’ published competitive assessments of

vendor services

2007 Performance

Key Metrics

Report mentions and tonality – EDS is the mention •leader at Forrester, one of the leading end-user-

focused analyst firms. EDS placed first in report

tonality, and as such was the most positively

referenced IT services firm by analysts tracking

the IT services market. EDS has held industry

tonality leadership for the past three years.

IAR program perception – EDS’ Industry Analyst •Relations Program maintained its IT services

leadership in 2007 in terms of effectiveness as

rated by the analyst community.

23

EDS Industry Analyst Summits

Global Summit (February), attended by 48 •analysts, featured client case studies, including Blue Cross Blue Shield Massachusetts and Merscorp.

Australia/New Zealand Summit (August), •attended by 23 analysts, featured a client case study on the Coles Group.

EMEA Summit (November), attended by 35 •analysts, included client case studies on Vodafone, la Caixa and Lufthansa.

EDS Leadership Designations by Industry Analysts

EDS leadership ratings – issued by Tier One industry analyst firms – reflect EDS’ market leadership.

EDS was recognized for its leadership in several areas in 2007:

Western Europe Data Center Outsourcing Magic Quadrant Gartner

North America Data Center Outsourcing MarketScope Gartner

European Remote Infrastructure Management WAVE Forrester

Global IT Infrastructure Outsourcing WAVE Forrester

Storage Services Magic Quadrant Gartner

Discrete Applications Outsourcing WAVE Forrester

North America Desktop Outsourcing Magic Quadrant Gartner

North America Help Desk Outsourcing Magic Quadrant Gartner

Western Europe Help Desk Outsourcing Magic Quadrant Gartner

Additional EDS awards and honors are listed at http://www.eds.com/about/awards/.

EDS-Sponsored Industry Analyst Events

Gartner U.S. Outsourcing Summit (March)•

Forrester IT Forum (May) •

Gartner EMEA Outsourcing Summit (April)•

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EDS strengthened its position as the business ally behind our clients’ success in

2007, and that was reflected in our economic performance. As we intensified our

focus on operational excellence, quality and customer satisfaction, we realized

profitable growth, grew our business, improved our operating margin and achieved

industry recognition.

The year 2007 was one of growth in numerous areas – market share, Best Shore®

presence, our capabilities and operational excellence. All of these factors contrib-

uted to improved financial performance, better operating margins, free cash flow

and growing respect from all our stakeholders.

For a complete summary of EDS’ financial performance in 2007, view the EDS 2007

Annual Report at http://www.eds.com/investor/annual. Specific sections of rel-

evance to corporate responsibility stakeholders are reproduced below, along with

information about EDS’ indirect economic impacts.

As of and for the Years Ended December 31,

2007(1) 2006(1) 2005(1) 2004(2) 2003(2)

Operating resultsRevenues $ 22,134 $ 21,268 $ 19,757 $ 19,863 $ 19,758

Cost of revenues 18,936 18,579 17,422 18,224 18,261

Selling, general and administrative 1,910 1,858 1,819 1,571 1,577

Other operating (income) expense 156 15 (26) 170 175

Other income (expense)(3) (43) (60) (103) (272) (262)

Provision (benefit) for income taxes 360 257 153 (103) (205)

Income (loss) from continuing operations 729 499 286 (271) (312)

Income (loss) from discontinued operations (13) (29) (136) 429 46

Cumulative effect on prior years of changes in

accounting principles, net of income taxes – – –

– (1,432)

Net income (loss) $ 716 $ 470 $ 150 $ 158 $ (1,698)

Financial Highlights(in millions, except per-share amounts)

economicperformance

25

We adopted a new method of accounting for share-based payments as of January 1, 2005. This change (1)

in accounting resulted in the recognition of pre-tax compensation expense of $33 million ($25 million net

of tax), $123 million ($83 million net of tax) and $160 million ($110 million net of tax) for the years ended

December 31, 2007, 2006 and 2005, respectively.

Operating results for each of the years in the two year period ended December 31, 2004, have been (2)

restated to conform to the current presentation to reflect certain activities as discontinued operations

during 2005.

Other income (expense) includes net investment gains (losses) in the pre-tax amounts of $0 million, $17 (3)

million, $(41) million, $6 million, and $6 million for the years ended December 31, 2007, 2006, 2005,

2004, and 2003, respectively.

Credit RatingsThe following table summarizes our senior long-term debt credit ratings by Moody’s Investor Services, Inc.

(Moody’s), Standard & Poor’s Rating Services (S&P) and Fitch Ratings (Fitch) as of March 20, 2008.

Moody’s S&P Fitch

Senior long-term debt Baa3 BBB– BBB

Outlook Stable Stable Stable

You can also view current EDS credit ratings by Moody’s Investor Services, Inc. (Moody’s), Standard & Poor’s

Rating Services (S&P) and Fitch Ratings (Fitch) at http://www.eds.com/investor/creditratings/.

As of and for the Years Ended December 31,

2007(1) 2006(1) 2005(1) 2004(2) 2003(2)

Per share dataBasic earnings per share of common stock:

Income (loss) from continuing operations $ 1.42 $ 0.96 $ 0.55 $ (0.54) $ (0.65)

Net income (loss) 1.40 0.91 0.29 0.32 (3.55)

Diluted earnings per share of common stock:

Income (loss) from continuing operations 1.37 0.94 0.54 (0.54) (0.65)

Net income (loss) 1.35 0.89 0.28 0.32 (3.55)

Cash dividends per share of common stock 0.20 0.20 0.20 0.40 0.60

Financial position Total assets $ 19,224 $ 17,954 $ 17,087 $ 17,744 $ 18,616

Long-term debt, less current portion 3,209 2,965 2,939 3,168 4,148

Shareholders’ equity 9,691 7,896 7,512 7,440 7,022

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Revenues Operating Income (Loss) Total Assets

2007

Americas $ 10,403 $ 1,584 $ 4,720

EMEA 6,433 1,002 3,364

Asia Pacific 1,800 188 1,026

U.S. Government 2,576 528 1,749

Other 5 (1,027) 1,628

Total Outsourcing 21,217 2,275 12,487

All other 917 (1,143) 6,737

Total $ 22,134 $ 1,132 $ 19,224

2006

Americas $ 10,584 $ 1,673 $ 4,776

EMEA 6,470 930 3,355

Asia Pacific 1,490 163 1,019

U.S. Government 2,520 409 1,125

Other 3 (1,053) 1,516

Total Outsourcing 21,067 2,122 11,791

All other 201 (1,306) 6,163

Total $ 21,268 $ 816 $ 17,954

2005

Americas $ 10,156 $ 1,579 $ 4,730

EMEA 5,956 800 3,570

Asia Pacific 1,384 90 535

U.S. Government 2,093 98 1,178

Other 1 (946) 1,419

Total Outsourcing 19,590 1,621 11,432

All other 167 (1,079) 5,655

Total $ 19,757 542 $ 17,087

Segment InformationEDS uses operating income (loss) to measure segment profit or loss. Segment information for non-U.S. operations

is measured using fixed currency exchange rates in all periods presented. The following table summarizes certain

financial information by reportable segment as of and for the years ended December 31, 2007, 2006 and 2005 (in

millions). The “all other” category primarily comprises corporate expenses, including stock-based compensation,

and also includes differences between fixed and actual exchange rates.

For more information on segments, view Note 12: Segment Information in the EDS 2007 Annual Report.

Service Line InformationThe following table summarizes EDS’ revenues by service line for the years ended December 31, 2007, 2006 and

2005 (in millions). Revenues of non-U.S. operations are measured using fixed currency exchange rates in all periods

presented. Differences between fixed and actual exchange rates are included in the “all other” category.

2007 2006 2005

Infrastructure services $ 11,496 $ 12,060 $ 11,133

Applications services 6,439 5,972 5,638

Business process outsourcing services 3,147 3,017 2,855

All other 1,052 219 131

Total $ 22,134 $ 21,268 $ 19,757

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Beneficial OwnershipA list of beneficial owners of more than 5 percent of the outstanding Common Stock of EDS as of December 31,

2007, based on a review of filings with the U.S. Securities and Exchange Commission, as well as information about

beneficial ownership reporting compliance, is set forth in the Stock Ownership of Management and Certain Benefi-

cial Owners section of our 2008 Proxy Statement.

Coverage of Defined Benefit Plan ObligationsEDS has several qualified and nonqualified pension plans covering substantially all of its employees. In the United

States, the two primary broad-based retirement plans are the EDS Retirement Plan, a noncontributory, tax-quali-

fied, defined benefit pension plan, and the EDS 401(k) Plan, a contributory, tax-qualified, defined contribution plan.

All full-time or part-time EDS employees automatically participate in the EDS Retirement Plan and are eligible to

contribute to the EDS 401(k) Plan. EDS maintains additional defined benefit and defined contribution plans outside

the United States, as well as nonqualified plans in several jurisdictions.

As required by U.S. law, the assets of the EDS Retire-

ment Plan and the EDS 401(k) Plan are held in trust

for the benefit of plan participants. These trusts are

controlled by independent trustees, and the assets of

the trusts cannot be tapped by EDS or its creditors for

any purpose other than to pay plan benefits.

The EDS Retirement Plan is a cash balance plan that

uses a benefit formula based on years of service, age

and earnings. Employees are allocated the current

value of their retirement benefit in a hypothetical ac-

count. Monthly credits based on age, years of service,

compensation and interest are added to the account.

Upon retirement, the value of the account balance is

converted to an annuity. EDS allows employees to elect

to direct up to 33 percent of their monthly credits to

the EDS 401(k) Plan.

Per EDS’ 2007 Annual Report, the aggregate value of

EDS’ defined benefit plan liabilities was $10.1 billion, and

the aggregate value of the assets set aside for funded,

qualified plans was $9.6 billion. These valuations are as

of October 31, 2007.

EDS’ U.S. funding policy is to contribute amounts that

fall within the range of deductible contributions for U.S.

federal income tax purposes.

For more information about EDS retirement plans, view

Note 13: Retirement Plans in the EDS 2007 Annual Report.

Indirect Economic ImpactsIn addition to the direct economic impacts, EDS operations also have indirect economic impacts on local commu-

nities and regional economies where EDS has hubs of operation. Some examples of indirect EDS impacts include

the following:

Community involvement often focuses on the •greater adoption or distribution of information

technology.

We contribute to economic development in new •and existing Best Shore® locations, including

locations with high poverty.

Partnerships with local academic institutions •enhance skills and knowledge among the

professional community.

There is incremental job creation in the local •supply chain.

EDS had approximately 41,000 employees in Best

Shore® locations as of December 31, 2007. In these

locations, EDS creates jobs, generates tax revenue

for local jurisdictions and makes investments in local

infrastructures. EDS has Best Shore® locations in

India, China, Brazil, Argentina, Hungary and Malaysia.

Through initial and ongoing training programs, EDS

provides employees opportunities to enhance their

skills and knowledge in the technology outsourcing

business and to deliver quality service.

For more information on indirect economic impacts of

EDS operation, see the Community Engagement sec-

tion of this report.

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EDS recognizes that a healthy environment is the basis for a sustainable global economy

and essential for the well-being of our people, our business and our clients’ success. The

key challenge is to enable global business, counteract human demands on the environ-

ment and still safeguard vital ecosystems. It’s a balancing act that requires efficient

processes and practices within eco-responsible solutions, with results that add business

value, lower IT costs and significantly reduce the enterprise

carbon footprint.

environmental sustainability

GovernanceEDS created a Global Environmental Governance

Council whose goal is to establish a compre-

hensive environmental sustainability program

with executive oversight. The council’s role is

to provide our teams with strategic support and

guidance in setting policies, priorities and direc-

tion on major environmental initiatives. A subset

of this council, the Global Environmental Core Team,

represents global functional leaders and regional repre-

sentatives who oversee implementation of global initiatives.

Regional teams are responsible for directing and managing operations in their areas. EDS’ Global Environmental

Sustainability manager works to ensure we are using our people, capabilities and innovative thinking to implement

business solutions that address climate change and other environmental issues for ourselves and our clients.

Environmental Sustainability ProgramAt EDS, “being green” isn’t an obligation — it’s an opportunity to be part of a solution addressing growing public

concern for our environment. EDS’ environmental sustainability program engages our clients, our operations and

our employees.

Governance Council – Sets Strategy and Priority

Sustainability Manager – Provides Program Management

Core Team – Aligns and Oversees Global Initiatives

Work Streams – Facilities, Supply Chain, Employees, Capabilities, Baselines, etc.

Regional Implementation Teams – Directs, Manages, Operates and Reports

Functional LeadersRegional Leaders

AsiaPacific Canada EMEA Latin

America U.S.

Our ClientsEDS is committed to providing our clients with ser-

vices and solutions that maximize and protect valuable

economic and ecological resources — and yield a more

sustainable bottom line. We recommend that clients

reduce their direct and indirect carbon footprint and

move to an environmentally friendly IT infrastructure

that runs optimized business processes. EDS combines

optimization, automation, standardization and virtual-

ization with environmental procurement and disposal

strategies that add business value and lower IT costs.

For more information, refer to GRI EN6 in Appendix 6:

Environmental Performance Indicators or visit

http://www.eds.com/about/corporate/environment/

capabilities.aspx.

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Our OperationsAn effective environmental framework includes a focus on our own operations. EDS is assessing our global energy

usage, adopting sound environmental practices within our facilities and business operations, engaging our employees,

partnering with others and transforming our supply chain to reduce our carbon footprint and leverage improvements

for clients.

Reducing our energy consumption not only reduces our carbon emissions but also reduces our operating costs.

Efficiency improves our internal operations and enables us to provide more value to our clients while reducing our

environmental impact. Efficiency is good for our business and good for our environment.

Baselining Our Environmental Impact

EDS is taking the following actions to baseline our envi-

ronmental impact globally:

In Australia and New Zealand, EDS has baselined •energy usage, calculated carbon emissions and

established a goal to reduce emissions by 25 percent

through 2010. Actions include a videoconferencing

investment targeting a 20-30 percent reduction in

employees’ domestic air travel and a carbon offset

program pilot for employees.

In the UK, EDS partnered with The Carbon Trust to •survey energy usage in a sample of facilities and

data centers. EDS also partnered with Enviros to

conduct an environmental study of all UK facilities

and operations and recommend an ongoing carbon

management program.

Globally, EDS is conducting a study to define a •worldwide baseline for emissions, resource usage and

waste, with recommended targets and metrics for

ongoing improvements.

EDS’ world headquarters facility in Plano, Texas,

uses innovative solutions to reduce its environ-

mental impact:

A waste-reduction program resulted in •more than 140 metric tons of paper, plastic

and aluminum materials recycled from our

facilities at world headquarters. In addition,

more than 181 metric tons of landscape debris

(grass clippings, leaves, tree limbs, etc.)

were either reused as mulch on campus or

composted for reuse by the city of Plano. Due

to the recycle programs currently in place,

only 414 metric tons of solid waste were sent

to local landfills and 40,000 gallons of waste

liquid to treatment facilities.

A state-of-the-art lighting system pilot •that incorporates dimmable, addressable

lighting interface (DALI), electronic ballasts

and sophisticated scheduling software was

initiated. The system leverages natural

lighting via multiple atriums using daylight

harvesting strategies and provides efficient,

uniform lighting to enhance employee

productivity and lower costs.

A complex drainage system on the property •reclaims any excess irrigation and rainwater

and diverts it back to a chain of lakes. In

2007, it is estimated that EDS’ headquarters

facility reclaimed almost 10 percent of

the total irrigation and rainwater used on

property – more than 23 million gallons.

A landscaping program encourages using •native plants that require less water and

fewer pesticides.

Our Facilities

EDS is taking the following actions to reduce the environ-

mental impact of our facilities around the world:

Expanding recycling programs globally and engaging •employee participation in EDS-owned and leased facilities

Implementing energy-efficient designs and upgrades •to our facilities, including lighting and HVAC systems

and controls

Adopting environmentally sound building standards for •new and renovated facilities

Consolidating facilities, where practical, to reduce our •overall real estate footprint

Pursuing opportunities to purchase a higher percentage •of our electricity needs from eco-friendly generation

sources (wind, solar, water, biomass, etc.)

Seeking innovative ways to reduce water use and •augment municipal water supplies with other sources

for irrigation

Renewing ISO 14001 environmental certification at •designated facilities

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Our Data Centers

Data centers’ increasing energy demands are rapidly

increasing the IT sector’s carbon footprint. At the

same time, carbon regulation and energy scarcity

are making energy ever more expensive. Meanwhile,

environmentally conscious clients are demanding

greener services from their suppliers, including IT

service providers. Our environmental strategy will

respond to these market drivers and position EDS as

a world leader in environmentally sound IT solutions.

Our approach is founded on building the world’s most

efficient data centers, deploying new technologies

and eco-friendly services, and exploring new busi-

ness models that reward energy efficiency.

On the IT side, purchasing the most energy-efficient

servers for virtualization and reducing server counts are reducing energy consumption. For example, the EDS devel-

opment labs have virtualized servers at a 25 to 1 ratio. This helped EDS labs reduce power consumption and cooling

by more than 80 percent.

Our EmployeesEDS encourages employees to continually improve their personal environmental performance at work, at home

and in their communities by suggesting actions they can take to reduce their environmental impact. Here are some

ways we engage employees:

Review environmental sustainability information •on the EDS intranet

Participate in local recycling programs•

Implement energy-efficient computing habits, •including power management

Calculate a personal carbon footprint•

Participate in carbon offset programs, either •internally or externally

Reduce environmental footprint at work, at •home and while driving

Negotiate corporate discounts (where available) •and encourage the use of public transportation

Engage in the community•

In addition, EDS encourages employees to submit eco-friendly ideas that can benefit EDS and clients through its

global Innovative Ideas Program. Ideas are evaluated by functional and regional representatives for further devel-

opment and implementation.

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Partnerships and StewardshipEDS and its Agility Alliance partners are working to optimize the performance and minimize the environmental

impact of technology on EDS operations, as well as those of its clients. EDS and our alliance partners are actively

involved in industry groups such as Climate Savers Computing Initiative and The Green Grid, among others. Through

EDS’ involvement in these groups, we seek opportunities to improve overall computing platform and data center

power efficiencies internally and across the industry. In addition, we believe that operating efficiencies produced by

EDS-developed internal best-practice standards, processes and optimized facility designs will streamline our costs

and reduce the environmental impact of our operations.

Selected AccomplishmentsThe table below summarizes selected accomplishments in 2007:

Accomplishments

Client Engagement �

Identified eco-friendly service offerings and Alliance Partners’ value propositions•Shared our position on environmental sustainability with numerous EDS clients•Engaged a UK government client on EDS environmental initiatives•Launched EDS’ eco-friendly value proposition and service offerings in Australia and New Zealand (A&NZ)•

Marketing and Communications �

Developed the EDS Environmental Framework•Completed Environmental Initiatives research project with Gartner Custom Research (GCR) to help drive •environmental sustainability in the marketplaceLaunched environmental sustainability content on • www.eds.comDelivered environmental sustainability viewpoints at the MIS Green Roundtable and the American Chamber •of Commerce luncheon in AustraliaParticipated on the Environmental Sustainability panel at VM World 2007•Participated in Earth Hour in A&NZ•Conducted a “Green IT” workshop in Sydney, Australia, with the EDS Agility Alliance partners•

Facilities �

Centralized and reduced EDS’ managed output device footprint in A&NZ, which resulted in reduced energy •and paper useRaised awareness of enhanced recycling programs•Introduced energy-efficient design features in facilities and data centers•Initiated a dimmable addressable lighting interface (DALI) pilot•Renewed ISO 14001 environmental certification at the Lloyds/TSB account in the St Aiden’s Building, •Peterlee in the UK

Employee Engagement �

Implemented a program under which A&NZ employees could offset their personal emissions through •contribution to an Offset Credit Fund. Contributions were matched by EDS.Deployed videoconferencing across all 10 major sites in A&NZ to reduce air travel and associated indirect •carbon emissionsDeployed EDS Innovative Ideas Program to capture environmental suggestions from employees•Published environmental sustainability content on EDS’ intranet to educate employees•Offered corporate discounts to encourage the use of public transportation•Offered electronic pay stubs as an alternative to printing and mailing•

Data Center Operations �

Began an efficiency assessment of an EDS data center•Conducted power and utilization studies•Initiated a server virtualization program in A&NZ to reduce the number of EDS servers•

Power Management �

Incorporating eco-friendly power management settings into desktop and laptop image builds; pushing •proper settings to managed computers in 2008Progressing toward CSCI and ENERGY STAR commitments related to desktop, laptop and server purchases •through 2011

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GRI Performance Indicator InformationRefer to Appendix 6: Environmental Performance Indicators for information related to the GRI

environmental aspects of energy; water; biodiversity; emissions, effluents and waste; products and

services; compliance; transport and environmental protection expenditures.

Environmentally Conscious IT Equipment DisposalEDS is not a manufacturer, user or carrier of potentially hazardous materials on any significant

scale; however, EDS is dedicated to environmentally conscious IT equipment disposal.

Our IT Equipment Disposal ActivitiesWe use sustainable practices for our clients and also within our own operations. We use the follow-

ing methods to address recycling or disposing of IT equipment:

Redeployment• of operating leases –

Extending the useful life of equipment

by transferring it to other organizations

within EDS

Remarketing/repurposing• – Selling

equipment to employees, customers or

secondary-market buyers

Employee gift• – Awarding equipment to

EDS or client personnel

Donation• – Donating assets to nonprofit,

nonprivate organizations in the local

communities in which we operate

Disposal• – Arranging for an e-waste

recycling company to remove and

ecologically process EDS’ obsolete or

nonworking equipment. This includes

recycling metals and plastics for remanufacturing in support of a zero landfill policy. In the

United States, all equipment is processed within the United States.

For OurselvesWithin EDS’ U.S. operations in 2007, 389,586

EDS-owned IT assets were processed, resulting in a

total of 4,419 metric tons of e-waste. Of this total,

86 percent (338,296 assets) were subsequently

sold/repurposed, less than 1 percent (1,244 assets)

were reused as employee gifts and donations, and

13 percent (50,046 assets) were disposed/eco-

logically recycled. A focus on centralized business

processes has enabled EDS to improve our report-

ing over prior years.

EDS utilizes operating leases for certain types of

equipment. This IT equipment is returned by EDS to

leasing companies for processing by the lessor and

is excluded from our reporting.

For Our ClientsWe also provide disposal services to assist our

clients in effectively managing retirement of

their IT assets. In 2007, we processed more

than 123,000 IT assets on behalf of our clients

globally, resulting in a total of 1,395 metric tons

of e-waste. Of this total, 12 percent were rede-

ployed, 9 percent were sold/repurposed and 79

percent were disposed/ecologically recycled.

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Complete Disposal ComplianceCompanies must comply with a wide range of environmental and security regulations to properly dispose

of IT assets and sanitize confidential data on hard drives. EDS helps our clients with the following local,

federal, international and regional regulations, which can present risks associated with electronic scrap

disposal:

United States

Health Insurance Portability and •Accountability Act (HIPAA) of 1996

Gramm-Leach-Bliley Act (GLBA)•

Resource Conservation and Recovery Act •(Superfund)

Sarbanes-Oxley•

European Union

Waste Electrical and Electronics Equipment •Directive (WEEE)

Restriction of Hazardous Substances (RoHS) •directives and waste management (duty of

care) regulations

Canada

Royal Canadian Mounted Police (RCMP) •Technical Security Standard for Information

Technology (TSSIT)

Canadian Environmental Protection Act •(CEPA) – as dictated by various levels of

Canadian government

Personal Information Protection and •Electronic Documents Act (PIPEDA) and

related provincial statutes regarding data

protection and control

Mexico

Federal Ministry for Environmental •

Protection (PROFEPA)

We use contracted disposal suppliers who follow all federal, state and local Environmental Protection

Agency (EPA) guidelines within the United States. These suppliers must provide a certificate of disposal

that complies with U.S. EPA guidelines for disposed IT assets. In other regions of the world, EDS adheres to

appropriate local standards and regulations for IT asset disposal.

EDS is aggressively pursuing recycling regulations – ISO 9001, ISO 14001 and ISO 17799.

Training and AwarenessEDS launched a leadership awareness campaign that included

visiting companies that have built sustainable facilities. We

also held environment-specific discussions with key and

influential clients, government organizations, investors and

employees to assess the current state of environmental

sustainability, and identify challenges and opportunities. As

a result, EDS is realigning its business model to address cli-

mate change, the use of natural resources and the potential

economic impact of environmental sustainability.

Monitoring and Follow-upTo launch the initiative for a global environmental study,

EDS needs an environmental information infrastructure to

systematically gather, monitor, measure, report and manage

this function. As a result, EDS is evaluating market-available

tool sets and internal capabilities to create the information-

gathering and repository tools necessary to achieve improve-

ment and report against industry standards.

EDS is working on a comprehensive environmental sustainability strategy that drives good and fundamen-

tal changes within the boundaries of EDS operations and in the greater marketplace. This forward-looking

strategy will address the needs of a sustainable global economy, the well-being of our people, our business

and our clients’ success.

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Socially Responsible Business StrategyEDS actively promotes a socially responsible global supply chain. We work with multicultural business

organizations on local, national and global levels to identify new, historically underrepresented business

entities for supplier relationships, and we have a proven track record in environmental responsibility.

Through our commitment to forming strong relationships, EDS is attracting a highly qualified and diverse

community of suppliers that is representative of the clients and communities we serve. It’s a sound busi-

ness strategy that enables us to provide our clients the highest-quality goods and services.

“At EDS, we have built and are continuing to build an impressive assembly of high-quality and diverse suppliers, ranging from our ‘best of breed’ Agility Alliance partners to our ‘prime’ suppliers for contract labor and our preferred suppliers for other expenditures. Through this process, we have reduced our third-party costs dramatically while also improving the quality of service to our clients. This is a win-win for EDS and our clients.”

– Frank Boyer, EDS vice president and chief supply officer

Global Supply Chain TransformationEDS’ Supply Chain Management group reports

to executive leadership and manages the flow of

goods, funds and information through EDS’ supply

chain. This includes managing supplier relation-

ships, the processes EDS follows to procure goods

and services, and how EDS tracks and disposes of

assets. The Supply Chain Management team is fo-

cused on delivering value to EDS and its clients by

leveraging contracts with preferred suppliers and

by using a robust, competitive bidding process.

At EDS, supply chain transformation is about im-

plementing strategic, enterprisewide procurement

processes and policies. These same operational

improvements also result in establishing a busi-

ness environment and technology infrastructure

that enable greater corporate social responsibility.

Another way EDS serves as a business ally is through its strong relationships

with best-in-class suppliers whose skills and capabilities match or complement

ours. The ultimate goal is to reduce costs, increase efficiency and achieve envi-

ronmental sustainability as we meet our clients’ and EDS’ needs.

supply chainmanagement

In 2007, EDS implemented a new Global Supply

Chain Policy designed to attain enterprisewide,

best-in-class performance in supply chain opera-

tions. Our strategy to centralize, standardize and

better control procurement processes is also

enabling EDS to increase its ability to measure

and improve corporate responsibility.

The deployment of internal productivity tools

and applications, such as EDS’ eCatalog, is en-

abling EDS to make greater strides in advancing

corporate efficiency. eCatalog is used not only

to streamline the processes involved in obtain-

ing cost estimates and supplier quotations, but

also to more efficiently process the resale of

computer hardware.

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Supplier Diversity ProgramEDS works with numerous multicultural business organizations on local, national and global levels to actively

identify business entities for vendor relationships that help us enhance our service offerings and better serve

our clients. These partnerships also enable EDS to exert a positive economic impact in significant areas of opera-

tion, stimulating local economic development.

To further increase EDS’ exposure to local and diverse businesses, we publish information for suppliers at

http://www.eds.com/about/suppliers/ about how to engage EDS, as well as information about our commitment

to supplier diversity at http://www.eds.com/about/suppliers/diversity.aspx.

AwardsEDS has received numerous accolades for creating new opportunities for suppliers, promoting supplier diversity,

and for mentoring minority- and women-owned businesses and small business enterprises. Following are some

of the organizations that have recognized EDS’ achievements in this area:

U.S. Department of Defense•

Minority Business Development Agency, U.S. •Department of Commerce

National Minority Supplier Diversity Conference•

Women’s Business Enterprise National Council•

Canadian Aboriginal and Minority Supplier Council•

Women’s Business Council – Southwest•

Minority Business Development Council – Dallas/•Fort Worth, Texas

United StatesIn the United States, EDS sets annual goals and

objectives targeted at increasing the amount of

business we do with diverse suppliers and the op-

portunities for diverse companies to do business

with EDS. As a result of these efforts, EDS’ total

qualified U.S. procurement spending with minority-

owned and women-owned businesses was 9.2

percent in 2007, up from approximately 8.3 percent

in 2006. We used these firms to provide technical

software development, contract labor, computer

hardware, software, telecommunications equipment

and administrative services.

EDS’ total U.S. procurement spending with small

business enterprises was 12.0 percent in 2007,

up from 10.9 percent in 2006. These enterprises

include 8(a) certified businesses, Small Business

Administration (SBA) small disadvantaged busi-

nesses, veteran-owned businesses, service-disabled

veteran-owned businesses, historical black colleges/

universities (or minority institutions), and SBA his-

torically underutilized businesses. As a result, EDS’

total qualified procurement spending in the United

States with suppliers classified as diverse, disadvan-

taged or underutilized was 21.2 percent in 2007, up

from 19.2 percent in 2006.

Our commitment to achieving a best-in-class

Supplier Diversity Program is exemplified by the

reporting processes EDS implemented to enable

easy identification and tracking of our minority-

owned, woman-owned and small business enterprise

(MWSBE) spend.

EDS uses national associations and councils, state

and federal government agencies, and local cham-

bers of commerce to gain access to MWSBEs. We

also participate in supplier diversity trade shows in

support of the various MWSBE organizations.

EDS is also active within various committees,

including certification, mentoring and professional

development organizations such as the National

Minority Supplier Development Council and the

Women’s Business Enterprise National Council.

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Pinnacle Technical Resources, Inc. is a minor-

ity-owned supplier that provides EDS with

IT outsourcing services in various regions of

the world. Through its drive and motivation,

Pinnacle became one of two minority-owned,

women-led businesses awarded commercial

labor procurement contracts with EDS in early

2007. Pinnacle and Vision IT, another minority-

owned company, will implement EDS’ Prime

Supplier Program solution, which provides

recruiters sophisticated Web-based resources

to build a dedicated talent pool.

EDS worked with Pinnacle, the New England

Minority Development Council, the Connecticut

Minority Development Council and the Con-

necticut Women’s Business Council to sponsor

a supplier diversity event in November 2007

for New England-area MWSBEs eligible for sub-

contracting opportunities with EDS. More than

60 participants attended the event, which EDS

co-hosted with two clients.

At the local level of EDS’ corporate headquar-

ters location, approximately 30 North Texas

MWSBEs received subcontracts from Pinnacle.

All of the firms are members of the Dallas/

Fort Worth Minority Business Council and the

Women’s Business Council – Southwest. The

firms were able to realize these subcontracting

opportunities through a June 2007 program

sponsored by Pinnacle and the Dallas/Fort

Worth Minority Business Council held at EDS.

South AfricaEDS South Africa is a signatory of a Black Economic

Empowerment agreement to assist in transforming

the South African economy after the restrictions of

Apartheid were removed. EDS South Africa bases its

procurement policy on the following principles:

A Black Economic Empowerment (BEE) strategy, •cross-representation, evaluation criteria, a

business code of ethics and competitive pricing

Wherever possible, EDS’ policy is to •procure goods and services from previously

disadvantaged suppliers to enable meaningful

participation in mainstream South African

economy. These suppliers are defined as black

owned, black empowered, black influenced and

engendered.

CanadaTo advance supplier diversity in Canada, EDS is

guided by an “Aboriginal supplier” definition. This

includes defining joint venture arrangements to

ensure compliance and the integrity of the EDS Ab-

original procurement policy. EDS communicates its

procurement opportunities to relevant stakeholders

and Aboriginal business support entities through es-

tablished channels and pursues solutions to improve

awareness of economic opportunities.

EDS recognizes there are numerous qualified and

strong Aboriginal businesses in Canada and will

establish, as appropriate, “Aboriginal teaming”

strategies to be used in pursuing new business op-

portunities. In 2007, approximately $1.04 million in

spend was with Aboriginal and minority-owned orga-

nizations, up from $0.47 million in 2006. (Straight

Aboriginal spend for 2007 was approximately

$0.9 million.)

Pinnacle and Vision IT contribute to supplier diversity program growth

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Supplier Excellence DashboardThe EDS Supplier Excellence Dashboard is an

online tool that extends our industry-leading

emphasis on client service to our suppliers. The

dashboard highlights EDS’ innovation in, and

commitment to, measuring performance and

maintaining client satisfaction by tracking suppli-

ers’ progress in meeting benchmarks to correct

any deficiencies identified. It also empowers key

suppliers to take preventive actions to address

issues that may affect service performance to

EDS clients.

Supplier Quality, Screening and Risk Management

EDS screens and monitors the general perfor-

mance of a core list of suppliers through EDS’

Supplier Excellence Dashboard in the following

delivery areas: cost of product, global presence

and responsiveness to client issues.

EDS has a formalized Supplier Quality, Environ-

mental and Social Accountability Assessment

program in Europe to review supplier standards in

areas including environmental sustainability, social

responsibility, human rights and quality as part of

our risk-management due diligence efforts. The

program strengthens our ability to have a positive

impact on the wider business community. Plans are

under way to extend this program worldwide.

In some emerging markets where we have a

significant operating presence, EDS engages local

governmental agencies to influence policies on

human rights, labor or other social concerns. In

addition, EDS is embarking on a program to reduce

the number of suppliers and contracting agencies

as a part of our overall risk-management and cost-

leadership initiatives.

Mentoring Programs and PartnershipsThrough our mentoring programs and partnerships,

EDS helps minority-owned, women-owned and small

businesses sharpen their business skills; enhance

delivery, quality and service; and compete more ef-

fectively in the marketplace.

EDS is a partner in external mentoring programs,

including the following at the U. S. national level:

Federal Small Business Program•

U.S. Department of Defense Mentor-Protégé •Program

U.S. Department of Treasury Mentor-Protégé •Program

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Corporate Governance

EDS has clearly defined structures for guiding and monitoring how we conduct our business to ensure EDS’

executives, directors and managers act in the best interest of the organization, its employees and share-

holders. These structures help the leaders responsible for steering the future of our organization decide

how company assets are used.

For detailed information regarding corporate governance at EDS, visit www.eds.com/investor/governance.

Board Responsibilities The EDS Board of Directors is elected by and ac-

countable to the shareholders and is responsible

for the strategic direction, oversight and control of

EDS. In carrying out its responsibilities, the board

will exercise sound, informed and independent

business judgment. The board’s responsibilities

include decision-making and oversight.

Director IndependenceAn independent director is one who is free from

any relationship that would interfere with his or

her exercise of independent business judgment.

A director is not independent if he or she fails to

satisfy the standards for independence of the New

York Stock Exchange or applicable law. All non-

management directors are independent.

Directors who serve on EDS’ Audit Committee

also must meet the additional independence

standards of the New York Stock Exchange and

the SEC applicable to Audit Committee members.

Among other things, such directors will receive

no compensation from the corporation other than

director’s fees and will not be affiliates of the cor-

poration or its subsidiaries.

Nomination and Selection of DirectorsThe board as a whole will be responsible for

nominating individuals for election to the board

by the shareholders and for filling vacancies on

the board that may occur between annual share-

holder meetings. The Governance Committee

will be responsible for identifying, screening and

recommending candidates to the entire board. Due

consideration will be given to the board’s overall

balance of diversity of perspectives, backgrounds

and experiences.

For more information about the director nomina-

tion process at EDS, visit http://www.eds.com/

investor/governance/nominations.aspx.

Conducting business responsibly requires clear and well-defined structures

and policies for corporate governance, ethics and compliance. Security, privacy

and data protection are also critically important within EDS and for our clients.

Solid policies and practices are in place to ensure we meet the needs of our

clients and EDS.

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Election of DirectorsAll directors of EDS are elected for a one-year term at

each annual shareholders’ meeting. In 2007, the board

approved amendments to the company’s bylaws and

Corporate Governance Guidelines to require that in

an uncontested election of directors, a nominee must

receive more votes for than against his or her election

to be elected to the board.

The board expects a director to tender his or her

resignation if he or she fails to receive the required

number of votes. The guidelines provide that the

board shall nominate as director only candidates

who agree to tender, prior to nomination, irrevocable

resignations that will be effective upon (1) the failure

to receive the required vote and (2) the board’s ac-

ceptance of such resignation.

For additional information regarding the implemen-

tation of this “majority vote” requirement for the

election of directors, see the information under the

heading “Implementation of Majority Voting for Direc-

tors” at http://www.eds.com/investor/governance/

guidelines.aspx.

Process for Evaluating Board PerformanceThe board annually conducts or causes to be conduct-

ed a performance evaluation to determine whether the

board and its committees are functioning effectively.

This evaluation will take place under a formal process

approved by the Governance Committee. Additionally,

all directors are free to make suggestions to improve

the board’s effectiveness at any time and are encour-

aged to do so.

Each of the corporation’s standing committees is also

evaluated annually with respect to its performance

in accordance with a formal process approved by the

Governance Committee.

After these evaluations have been completed and

summarized, a summary of the full board and each

committee evaluation is provided to the Governance

Committee. The Governance Committee reviews the

full board evaluation results, reports results and

makes recommendations regarding any suggested

improvements to the full board. Each standing com-

mittee reviews the results of its respective committee

evaluation and reports the results and any suggested

improvements to the full board.

Board CommitteesThe board has three standing committees to assist it in

discharging its responsibilities: the Audit Committee,

the Compensation and Benefits Committee, and the

Governance Committee. Each committee is composed

entirely of independent directors, has a written charter

that complies with the requirements of the New York

Stock Exchange, and reports regularly to the board on

committee meetings and other committee activities.

EDS’ Financial Integrity Policy sets forth procedures

for the confidential, anonymous submission by com-

pany employees of concerns regarding questionable

accounting or auditing matters. Nonemployees may

submit concerns regarding these matters as provided

in the policy for Director Communications.

For additional information regarding EDS board com-

mittees, visit http://www.eds.com/investor/

governance/committee.aspx.

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Ronald A. Rittenmeyer

Chairman of the Board, President and Chief Executive Officer

Ellen M. Hancock

Former Chairman and Chief Executive Officer of Exodus Communications, Inc.

Jeffrey M. Heller

Vice Chairman

Ray L. Hunt

Chairman of the Board and Chief Executive Officer of Hunt Oil Company

W. Roy Dunbar

President and Chief Executive Officer of Network Solutions

Edward A. Kangas

Former Chairman and Chief Executive Officer of Deloitte Touche Tohmatsu

Martin C. Faga

Former President and Chief Executive Officer of The MITRE Corporation

James K. Sims

Chairman of GEN3 Partners, Inc.

S. Malcolm Gillis

Professor of Economics and former President of Rice University

R. David Yost

President and Chief Executive Officer of AmerisourceBergen Corporation

Ray J. Groves

Former Chairman and Chief Executive Officer of Ernst & Young LLP

Ernesto Zedillo

Director of Yale Center for the Study of Globalization and former President of Mexico

EDS Board of DirectorsRonald A. Rittenmeyer was appointed to the EDS Board of Directors in July 2007. He was appointed chief executive

officer of EDS effective September 1, 2007, and chairman effective December 31, 2007.

Ten of the 12 members of the EDS Board are nonmanagement independent directors. EDS Board members are

listed below. To read their biographies, visit http://www.eds.com/about/board/.

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Ronald A. Rittenmeyer

Chairman of the Board, President and Chief Executive Officer

Storrow M. Gordon

Executive Vice President, General Counsel and Secretary

Jeffrey M. Heller

Vice Chairman

Jeffrey D. Kelly

Executive Vice President, Americas

Charles S. Feld

Senior Executive Vice President, Applications Services

Michael R. Koehler

Executive Vice President, Global ITO Services

Tina M. Sivinski

Senior Executive Vice President and Chief Administrative Officer

William G. Thomas

Executive Vice President, Europe, Middle East & Africa

Michael B. Coomer

Executive Vice President, Asia Pacific, Global Financial Services & Products

Ronald P. Vargo

Executive Vice President and Chief Financial Officer

Joseph F. Eazor

Executive Vice President, Corporate Strategy and Business Development

EDS Executive LeadershipThe business expertise and industry insight of EDS’ leaders drive our performance. EDS executive leaders

are listed below. To read their biographies, visit http://www.eds.com/about/biographies/.

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EDS Code of Business ConductThe Code was first adopted over a decade ago and is a

guide to our corporate standards, reflecting the values

we expect of the directors, officers and employees of

the entire EDS family of companies.

All employees globally (except where prohibited by

law) are required to certify annually that “they are

aware of the Code, have access to it, and have read and

understand it,” and that they “are aware of how to seek

guidance and report violations.”

All senior leaders globally must also certify annu-

ally to the following: “Except for matters I know have

been previously reported pursuant to the EDS Code of

Business Conduct, I do not know of or suspect any EDS

employee (or person acting on EDS’ behalf) of violating

any law or regulation or of violating any section of the

EDS Code of Business Conduct.”

Subject-matter experts from relevant EDS organiza-

tions globally conduct an annual review of the Code

with input from Legal Affairs and other leaders and

employees who possess pertinent regional knowledge.

Country addendums attached to the Code take into

account certain variations in local laws and customs.

As a result of this review, updates are made to the

Code to reflect new legal requirements, emerging best

practices or new organizational or business risks.

EDS’ Audit Committee reviews the Code annually. The

Ethics and Compliance Officer also provides an annual

update to the Audit Committee on program activities,

results from the past year and plans for the

coming year.

The EDS Code meets the standards for a “code of eth-

ics” applicable to our officers for purposes of appli-

cable U.S. Securities and Exchange Commission (SEC)

rules and satisfies the requirements of the New York

Stock Exchange for a code of business conduct.

The EDS Code of Business Conduct can be downloaded

from www.eds.com/investor/governance/code.aspx.

Ethics and Compliance

EDS is committed to conducting business ethically and with integrity and promotes ethical leadership, ownership

and accountability. Our ethics and compliance program applies globally to all employees, directors and subsidiaries.

The program covers compliance with domestic and international laws that significantly affect our business dealings.

The EDS Office of Ethics and Compliance administers

EDS’ business conduct and compliance programs

by managing issues, including allegations of viola-

tions of the law or company policy. Through training

programs, workshops, effective communications and

policy clarification, employees are provided with the

information, knowledge and skills necessary to make

ethical decisions.

The Office of Ethics and Compliance strives to proac-

tively address areas of risk and implement necessary

corrective actions to prevent violations. Risk assess-

ments are conducted periodically to identify areas

that need additional focus. Corporate Audit reviews

various components of the program to help ensure

proper implementation. The Office also conducts and

participates in various surveys to determine over-

all employee awareness of the corporate standards

contained in the EDS Code of Business Conduct and

awareness of company ethics.

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Corporate PoliciesEDS’ Corporate Policies address many of the laws

and regulations that govern our business and assist

employees in determining the best course of conduct

in a given situation. Every employee is responsible for

learning the details of our Corporate Policies and for

raising any concerns and questions to an EDS leader.

Leaders have an additional obligation to lead by

example, using their own behavior as a model for all

employees and for creating a culture that

promotes compliance.

Compliance Reporting and TrackingCompliance is the responsibility of all employees

under the Code of Business Conduct, and all have a

duty to report known or suspected violations of law

or policy. Employees have access to a number of dif-

ferent methods to report concerns, starting with their

leader or leader’s leader. If preferred, they can exer-

cise the Open Door, which enables them to talk to any

leader in the company about any work-related issue

without fear of retribution. Work-related issues can

also be raised with Human Resources, Legal Affairs, or

the Office of Ethics and Compliance.

The Ethics Helpline is available for confidential report-

ing or advice 24 hours a day, every day. The Helpline

is staffed by a third-party vendor, and language trans-

lation services are available. Employees can also use

the Ethics Inquiry electronic message function on the

Ethics and Compliance intranet Web site.

An internal confidential database tracks contacts

with the Office of Ethics and Compliance. Reports

involving allegations of wrongdoing are appropriately

investigated. Matters referred for investigation are

followed until closed, and appropriate corrective

action – up to and including termination – is taken.

As evidenced by the company’s U.S. Securities Laws

filings, when deemed appropriate, EDS has self-

reported compliance matters to the appropriate

government enforcement authorities.

CorruptionEDS’ approach to corruption combines the principles

of three corporate policies: Prohibition of Corrupt

Payments, Conducting Business with Government

Entities and Financial Integrity. Many countries’

laws, including the U.S. Foreign Corrupt Practices

Act (FCPA), and EDS’ policy prohibit EDS employees

from directly or indirectly giving or offering anything

of value to government officials or officials of public

international organizations to gain business or favor-

able government action. The FCPA also requires EDS

to maintain accurate records and internal controls.

These policies apply to all officers, directors, execu-

tives, leaders, employees, contract laborers, and

any agents and representatives of EDS, while acting

on behalf of EDS or any of its directly or indirectly

majority-owned or controlled subsidiaries.

Anti-Competitive BehaviorEDS competes vigorously and fairly in conducting

business matters, and we always observe the letter

and spirit of the anti-trust laws of the United States

and similar laws of other countries in which we do

business. EDS did not have any actions for anti-

competitive behavior or anti-trust and monopoly

practices brought against it in 2007.

ComplianceCompliance with all laws is a common thread

throughout EDS’ Code of Business Conduct and

Corporate Policies. We conduct business in a manner

consistent with EDS’ guiding set of values, principles

and high ethical standards, irrespective of local

culture and customs. Regardless of the minimums

established by local law and custom, EDS will always

seek the higher ethical ground when it comes to

global issues such as bribery, environmental protec-

tion and human rights.

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Compliance Area General Functional Owner(s)

Global security and privacy Chief Security and Privacy Office (CSPO)

Export/import laws, boycotts, embargoes Office of Export Compliance

Anti-harassment and discrimination Legal Affairs

Document retention and management Finance/Legal Affairs

Anti-trust/Fair competition Legal Affairs

Intellectual property protection Legal Affairs/CSPO

Conflicts of interest Office of Ethics and Compliance

Health and safety Legal Affairs/CSPO

Insider trading Legal Affairs

Corrupt payments, FCPA Legal Affairs/Global Supply Chain Management

Labor and employment Legal Affairs

Business regulatory compliance Relevant business and support units with additional support from Legal Affairs

Patriot Act/Anti-money laundering Legal Affairs

Accounting, financial reporting and disclosure Finance/Legal Affairs

Whistleblower acts Legal Affairs

Corporate governance Legal Affairs

Table: EDS’ compliance areas and the general functional owner(s) of each area.

EDS Executive Committee members included •ethics and compliance comments in a combined

total of 27 open forum meetings where content

was available to the general employee population.

The Office of Ethics and Compliance helped other •EDS leaders incorporate ethics and compliance

comments into other open forum meetings, such

as town halls and global Web broadcasts, where

content was available to significant numbers of

employees.

The Office of Ethics and Compliance delivered 81 •communications covering 12 separate ethics and

compliance topics to target audiences via various

internal media channels.

Global training distributed to employees included •four interactive streaming video vignettes on

the following topics: Foreign Corrupt Practices

Act, sales compliance, conflicts of interest and

ethical choices. These two- to three-minute video

clips were offered in English audio and subtitled

in five additional languages, and are now also

communicated to all EDS employees globally in

these same five languages.

EDS executives delivered three ethics video •messages with the purpose of raising employee

awareness of expected ethical behaviors and

compliance with the law. These video messages

are now offered in English audio, and subtitled and

communicated globally in five additional languages.

2007 ResultsThe EDS Office of Ethics and Compliance achieved the following milestones in 2007.

Employee Code Certification

Of the 65 countries in which EDS does business, only seven countries remained exempt from the annual Code certi-

fication in 2007 because of local laws. EDS did the work necessary to enable employees in four additional countries

to participate in the annual Code certification. Previously, issues with local laws in these countries made participa-

tion problematic.

Leader Code Certification

All senior leaders completed the annual leader certification.

Ethics Awareness and Training

To help employees make good business decisions, the Office of Ethics and Compliance offered training and com-

munications throughout the year on a variety of topics in the EDS Code of Business Conduct. The training and

communications further increase awareness of every employee’s obligation to follow the Code and corporate

policies and comply with applicable laws.

45

Instructor-led and Web-conference training •on seven ethics and compliance topics was

delivered to target audiences in 72 separate

sessions.

Workplace harassment training was distributed •to approximately 70,000 leaders and

employees in Canada, Hong Kong, Malaysia,

the Philippines, Singapore, South Africa, the

UK and the United States. This was the first

time this workplace harassment training was

distributed and required for employees outside

the United States.

Security and Privacy Awareness Training was •distributed to approximately 120,000 EDS

employees globally.

Financial Responsibilities of Managers and •Manager Surrogates training was distributed to

approximately 13,000 managers and manager

surrogates globally.

Newly hired employees were required to •complete Combating Bribery, Export Control,

Security Awareness and Workplace Harassment

training within 90 days of their start date as

part of the EDS Onboarding Process.

Risk Assessments and Audits

In conjunction with the Office of Ethics and Compliance, EDS Corporate Audit performed an audit to assess

the adequacy and effectiveness of the EDS Export Compliance Program. The scope of the audit encom-

passed the following program areas:

Compliance for corporate-required training is tracked through a dashboard at the corporate, organiza-

tion, team and individual level and also by region and country. Managers are responsible for encouraging

their team members to complete ethics and compliance training and applying the lessons in their daily

work activities.

Export Compliance Recordkeeping – Reviewed •procedures and export documents retained to

support compliance with export regulations and

corporate policy record-retention guidelines

Governance Structure – Reviewed the overall •export compliance program, including

corporate policy and procedures, personnel

roles and responsibilities, level of experience

and knowledge, communication of export

requirements, and maintenance of an export

compliance intranet Web site

Training Program – Reviewed export training •programs, documentation and records, including

detailed records of employee participation

Export License and Screening Process – •Reviewed procedures used for identifying

licensing requirements and for screening against

relevant government lists; included a review of

procedures for screening foreign nationals for

export licensing issues

Audit System – Reviewed the internal •assessment process for business unit export

compliance programs

Procedures for Handling Suspected Violations – •Reviewed the process for reporting and handling

suspected violations

Best Shore• ® – Reviewed the processes for

migrating work offshore; included testing

approval transactions by export compliance

coordinators in the Work Migration tool

The audit concluded the Export Compliance Program is adequate in design and operation.

Surveys

In conjunction with the Office of Ethics and Compliance, EDS Corporate Audit performed a Code of Conduct

awareness survey to determine employees’ level of understanding. The survey was distributed to ap-

proximately 7,000 employees globally, and results indicated an overall good awareness of the corporate

standards in the Code.

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Government Affairs and Public Policy

EDS Global Government Affairs (GGA) addresses the issues that affect EDS and our business with public and

private-sector clients. GGA’s objective is to minimize legislative, regulatory or policy roadblocks that prevent

EDS from doing business. A GGA priority is to provide EDS business units with timely information about poten-

tial governmental actions – good or bad – to protect current business and improve our position to pursue new

business opportunities. We align ourselves with policy makers and influencers to ensure EDS works within an

optimal business climate.

Public Policy Engagement and CommitmentEDS Global Government Affairs addresses issues of public policy across the globe. In the United States, the GGA

Washington and State Government teams represent EDS to Congress, the administration, the governors and state

legislative leaders on a wide variety of issues. These include tax, appropriations for government programs, health-

care, government procurement rules, privacy and security regulations, trade and the effects of globalization.

Monitoring and Follow-upThe Office of Ethics and Compliance solicits stakeholder feedback and is responsive to suggestions

for improvement. For example, the following actions were taken in 2007:

Other Activities

Other Office of Ethics and Compliance activities included these:

Enhanced our data security incident •response process

Enhanced our anti-corruption due diligence process •for contractors (more than 800 contractors were

reviewed through this process in 2007)

Expanded our due diligence process to include •periodic follow-up checks of existing suppliers

against applicable government-denied parties lists

Established a Best Shore• ® export compliance

review process and hired a dedicated Export

Compliance coordinator to oversee this process

Reviewed all titles in EDS’ Document Retention •Schedule to ensure they align with current

requirements, reducing the number of record titles

by almost 20 percent

Employees requested that training and •communications be translated into additional

languages, and this has been incorporated as

a standard in our program.

Non-U.S. employees requested a less U.S.-•centric approach to training. New training

materials appropriate for global distribution

are being implemented.

Employees and other stakeholders suggested •improvements to the anti-corruption Contractor

Compliance Process, and these have been

implemented.

Stakeholders and clients requested additional •assurance that sensitive data entrusted to EDS

be protected. Data security breach prevention

and response measures have been implemented

and will continue to be expanded and improved.

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In the United States, the EDS Political Action

Committee (PAC) is a bipartisan committee that

makes contribu-

tions to federal,

state and local

candidates for elective office from both parties. It

is funded entirely by voluntary contributions from

eligible EDS employees. These contributions, in

return, help EDS provide employees with a stron-

ger voice on government issues that affect our

company, employees and industry.

In the 2007/2008 elections’ cycle, the EDS PAC

contributed $233,950 to bipartisan campaigns of

U.S. federal and state candidates who share our

policy views. The company does not make political

contributions outside the United States.

EDS employees and stockholders who want to

learn more about or participate in the EDS PAC

can visit http://www.epacweb.com/edspac.

At the EU level, the EDS GGA team engages with

bodies such as the American Chamber of Com-

merce EU, the Transatlantic Policy Network and

the European American Business Council on issues

ranging from the Lisbon Agenda to the digital

economy and trade. When appropriate, the GGA

team engages in specific pursuits or issues in

member states, providing strategic overview and

insights to support local implementation of public

affairs programs and technology.

In the UK, EDS is a member of numerous industry

and political organizations that help communicate

EDS views and those of the wider IT sector to the

UK government, Parliament and civil service. EDS

is proactively engaged with all of these bodies and

has representatives on a number of their policy-mak-

ing and communications forums.

In addition, EDS sponsors a number of events that

facilitate dialogue on key issues. The most prominent

of these is the Guardian Public Services Summit,

which EDS first sponsored in 2006. The high-profile

summit is a two-day event that brings together key

politicians, civil servants and other influential deci-

sion-makers to discuss the future of public services.

In 2007, speakers included government ministers,

permanent secretaries (the most senior civil ser-

vants), leaders from key areas of the public sector

– such as the National Health Service – and senior

leaders from industry.

Industry Engagement – Coalitions and MembershipsEDS’ numerous memberships within our product and

regional markets provide a forum for us to build a

strong global network of businesses, experts and pro-

fessionals to help influence public policy so EDS can

better perform in the business community.

Financial Assistance From GovernmentsEDS receives limited financial assistance from a

small number of government entities in countries

where we do business. Any financial assistance

received is subject to applicable laws, regulations

and disclosures. Following are some examples of

assistance we have received in locations where EDS

has or is planning significant operating presence:

Research and development tax credits•

Training grants for local resident employees•

Tax credits for employee training, real estate •investments and infrastructure improvements

Exemptions from property and/or sales taxes•

Governments of countries in which EDS conducts a

significant amount of business do not represent a

major shareholder presence in EDS.

Political Engagement – EDS Political Action Committee

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Climate ChangeLegislative and regulatory activity in response

to climate change has financial implications for

EDS that center on the direct cost of electricity

and water to provide services to our clients. The

IT business requires data centers and equipment

(such as computers, routers and servers) that

consume large amounts of electricity and generate

vast amounts of heat. These heating and cooling

requirements, as well as the mandates for alterna-

tive sources of energy, translate into a cost factor

that is subject to government interventions.

EDS participates in various forums to under-

stand the global regulatory risk associated with

current and/or expected government policy on

climate change. We joined an effort initiated by

the Business Roundtable called Climate RESOLVE

(Responsible Environmental Steps, Opportunities

to Lead by Voluntary Efforts). Topics covered in-

cluded strategies to price carbon in projects; how

to develop goals and metrics; keys to successful

energy-efficiency improvement in commercial

buildings; new products, technology and services

to improve energy efficiency; and keys to success-

ful industrial energy efficiency management.

EDS is also part of the industry-led coalition

Climate Savers Computing Initiative (CSCI). We

participated in recent meetings with the U.S.

Environmental Protection Agency (EPA), collabo-

rating with the Agency in supporting the ENERGY

STAR program. CSCI will hold additional meetings

with the EPA on technical alignment, branding and

power management.

As governments debate

proposed energy policy,

EDS expects to be

part of the discussion

through public policy

organizations, various

industry organizations and as

an individual company. Areas

of focus for EDS include what

effect additional energy taxes

will have; availability of energy

sources, because EDS must

have redundant power sources

to protect client data and operations; and how to

make information systems and data centers com-

ply with enacted policies.

From a UK perspective, EDS has implemented

the high-impact elements from a Carbon Trust

study into EDS’ environmental impact undertaken

in 2007. In addition, EDS has engaged a Carbon

Trust-endorsed consultancy to develop a program

of carbon reduction and environmental initiatives

that EDS plans to implement in 2008 and 2009.

Organizational ResponsibilityEDS Global Government Affairs reports directly to

the chairman. The organization has representatives

in all major regions where EDS conducts business.

Security, Privacy and Data Protection

SecuritySecurity is a proactive defense against anything that threatens a business’ stability, growth or performance.

EDS takes an integrated approach that leverages the best technologies, processes and tools to enable our

clients to do business in a secure and compliant environment while protecting the privacy of their employ-

ees, customers and partners. This approach encompasses every aspect of our work – systems, networks,

applications and business processes – leaving our clients free to focus on their core business and serve

their customers without interruption or worry.

49

Security PersonnelEDS has more than 2,500 employees and contractors

worldwide dedicated to providing a complete range of

physical and logical security services. Because of many

of our clients’ critical security requirements, EDS Se-

curity Operations Centers are manned 24/7 so we can

immediately respond to real or potential threats.

Privacy and Data ProtectionEDS is committed to complying with applicable pri-

vacy and data protection laws and to respecting high

standards in handling its own and its clients’ personal

information. We do this through compliance with the

EDS Global Privacy and Data Protection Policy and EDS

client contracts. This policy underpins the basic oper-

ating rules and procedures applicable to EDS’ handling

of personal information. These rules and procedures

consist of specific guidelines applied at the corporate

and individual EDS employee level in all uses of per-

sonal information – even in countries that do not yet

have comprehensive privacy or data protection laws.

To contractually obligate all EDS entities worldwide to

provide the same high level of care and security to EDS

and client personal information, EDS established the

EDS Intercompany Agreement in 1998. Because all EDS

legal entities are signatories to this agreement, our

clients can be assured we are taking the appropriate

steps to protect their personal information and comply

with all relevant global privacy regulations.

The EDS Privacy intranet Web site contains materi-

als outlining these policies and procedures. For more

information, view the EDS Privacy and Data Protection

Statement on the EDS Web site at http://www.eds.

com/site/privacy.aspx and the EDS Code of Business

Conduct at http://www.eds.com/investor/governance/

code.aspx.

EDS has several layers of physical security where war-

ranted, including armed and unarmed guards at some

facilities. All EDS guard force members are trained in

accordance with applicable security, health, human

rights and protection standards based on location,

function and government regulations.

2007 Highlights

Information Protection Week 2007

Each year, the Chief Security & Privacy Office (CSPO) conducts an internal campaign to maintain and increase

employees’ awareness of information protection guidelines and what employees can do to safeguard information in

their care. The theme of the 2007 awareness campaign was “Information Protection: Our Success Depends On It!”

The campaign included a week-long series of events

called IP Week, during which members of CSPO and

local law enforcement officials were available in most

major EDS facilities worldwide to promote privacy

and security awareness. The campaign provided

training, guest speakers, posters and other sup-

porting collateral to reinforce the message among

employees worldwide.

Eighty-nine EDS IP Week coordinators promoted

information protection to their teams at 72 different

sites in 10 countries. Each coordinator was respon-

sible for hosting his or her site’s IP Week activi-

ties, which ranged from ongoing communication,

information booths, contests and prizes, as well as

awareness campaigns.

EDS focused employees on three actions throughout

this campaign: identifying the information in their

care, protecting the information they handle and

reporting any losses immediately.

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Incident Reporting Tool

The Incident Reporting Tool is a single, integrated

tool designed for EDS employees to report security,

privacy or crisis situations online. During 2007, EDS

enhanced the Incident Reporting Tool to ensure each

incident is directed to the appropriate organization

for handling. Other enhancements include additional

form fields for the submitter and emergency contact

information for certain incidents being reported.

Data Loss Prevention

EDS has a lengthy track record of protecting our own

and our clients’ sensitive information with a range of

security capabilities. In 2007, EDS deployed the Vontu

data loss prevention solution in the United States

and will expand to other geographic regions in 2008.

The solution analyzes content of e-mail, Web mail,

file transfers and other Web traffic from EDS to non-

EDS addresses over the public Internet. The solution

searches for unencrypted Social Security numbers,

credit card numbers, financial account numbers, EDS

network IDs with passwords, and EDS proprietary

information. This program is part of a proactive and

ongoing effort to reduce risk and protect EDS and

client personal and sensitive information.

Encryption

EDS implemented the Pointsec secure content lap-

top/desktop encryption solution designed to protect

EDS and client data stored on EDS laptops and desk-

tops, as well as external media devices such as USB

thumb drive, DVD, CD or external disk drive. Deploy-

ment began in 2007 with laptop and desktop hard

disk encryption and is continuing to be upgraded

globally in 2008 with capabilities to encrypt external

media devices.

Organizational ResponsibilityThe Chief Security & Privacy Office (CSPO) is structured functionally to include the following groups: Privacy

Office, Information Security Office, Executive Support and Crisis Management, Business Support, Investigations,

and Global Operations. CSPO is responsible for enterprisewide IT and physical security, privacy, crisis manage-

ment and business continuity coordination, executive protection, and the health and welfare of EDS employees.

Consolidating and uniting these functions into a single organization improves accountability, coordination and

response time. CSPO works in concert with several organizations across the company to help ensure delivery

of quality service to EDS clients and internally. These organizations also work together to ensure security and

privacy awareness is part of the EDS culture.

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Training and AwarenessAll employees can access the EDS Security and Privacy intranet site. It provides guidelines, internal and

external collateral, and other reference materials EDS employees might need. Although there is no dedicated

help desk, the CSPO team is available to respond to security- and privacy-related questions.

Monitoring and Follow-upAs appropriate, EDS self-reports breaches of client

privacy and losses of client data to the appropriate

government enforcement authorities and fully coop-

erates with investigations. EDS manages sensitive

information for more than 5,000 clients and does

not publicly discuss possible breaches of client data.

There were no complaints filed against EDS for loss of

employee personal data.

The EDS Computer Incident Response Team (CIRT)

provides a timely and orderly response to information

security incidents. A security incident occurs when-

ever information is compromised, when there is a risk

for compromise of information, when recurring or

In addition, the CSPO offers employees worldwide a

number of training and education initiatives through-

out the year:

Privacy and Data Protection Training• provides

information to increase employee awareness of

privacy and data protection requirements that

must be understood and followed.

Security and Privacy Awareness Training•

is an annual requirement for all employees.

It is intended to raise awareness of common

information security and privacy issues

employees face every day and describes the

EDS policies and procedures for safeguarding

information against loss, misuse or

unauthorized disclosure. During 2007, EDS

deployed its mandatory annual security and

privacy awareness training program (available

in six languages).

In the • Life Safety Basics course, employees

become better prepared to respond to a variety

of emergency situations in the workplace.

successful attempts to obtain unauthorized access

to a system are detected or where system misuse

is suspected. The types of incidents covered by the

CIRT involve the maintenance and logical security

for system and network components.

The CIRT helps EDS recognize, resist and recover

from attacks on its own IT infrastructure and those

of its clients. The team’s goals are to control and

minimize damage, preserve evidence, provide quick

and efficient recovery, prevent similar events in

the future, and gain insight into current and future

threats against the organization.

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2007 PerformanceEDS is in full compliance with the ICC International Code of Advertising Practice, detailing that “all advertising

should be legal, decent, honest and truthful.” In 2007, our advertising focused on EDS’ market position of deliver-

ing technology services to achieve business results and was demonstrated through client-approved case studies.

In showcasing specific client results, the advertising ensured that claims were always validated, included appro-

priate legal lines to protect the use of the EDS logo/trademarks and did not contain misleading comparisons or

indecent materials.

Marketing and the EDS Brand

EDS’ global brand is built on trust and is demonstrated through the guiding principle of our promise of value to

clients and employees: “We deliver on our commitments so you can deliver on yours.” This fundamental corporate

philosophy is proved every day throughout the world in the results we collectively deliver to our clients.

As a services company in which our

people are our brand, EDS is com-

mitted to behaviors supporting the

highest standard of integrity. As a

publicly held company, we provide

transparency into corporate activi-

ties and ensure our culture embodies

the core attributes we promote in

advertising and marketing. To ensure

a seamless global experience inter-

nally and externally, EDS has a brand

policy that aligns to our monolithic

brand strategy.

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ED

S ©

2007

As proof points, EDS uses client case studies that have

been approved in writing by the clients mentioned.

In 2007, we achieved the goal of training all mar-

keting teams (including each region) on global

brand strategy, message framework, advertising

and creative expression. This enabled us to ensure

consistency across all communications and brand

touch points. Also, EDS continuously maintains data

on approved names, trademarks and taglines. Any

new materials are checked through the EDS legal

process to ensure they do not infringe on any other

companies’ trademarks.

EDS in no way exploits children or addresses children

in our advertising and marketing materials.

EDS Global Marketing uses professional, third-party,

globally recognized research firms to validate and

consult on brand and advertising initiatives. At the

end of 2005 and on into 2006, EDS worked with

Gartner Custom Research (GCR) to customize an

11-country research project that evaluated the brand

in conjunction with our Tier 1 competitors. In 2007,

EDS continued tracking the brand performance via

third-party research in the United States and United

Kingdom. From these important studies, we are able

53

to assess the strength of EDS’ brand

in alignment with buying behaviors

and key attributes the target market

considers vital in working with tech-

nology services companies.

In addition, we have worked with

companies such as the Information

Technology Services Marketing As-

sociation to participate in general

research to track the brand perform-

ance of IT services companies like

EDS. As new advertising campaigns

are developed and executed, third-

party research is typically used to

ascertain effectiveness of message,

recall, believability and impact on

purchase decisions. This kind of objective validation also ensures global considerations and cultural diversity.

In 2007, EDS had no incidents of noncompliance with regulations and voluntary codes concerning marketing

communications, including advertising, promotion and sponsorship.

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S ©

2007

Organizational ResponsibilityEDS’ vice president of Global Marketing reported directly to the EDS chief executive officer in 2007. Regional

marketing responsibility was handled by marketing directors for the Americas, EMEA, Asia and Australia/New

Zealand. These individuals reported to the vice president of Global Marketing.

Training and AwarenessThe EDS Brand Strategy and Advertising team continuously collaborates and communicates with regional, in-

dustry and product marketing team members across the globe. This team is responsible for conducting training

sessions with marketing team members as questions of brand adherence arise or changes to brand expression

are implemented.

Other corporate groups that communicate directly

with the marketplace are also included in brand train-

ing. In 2007, EDS Recruiting and EDS Brand Strategy

and Advertising were able to collaborate on inte-

grated communication and marketing materials to

promote a unified brand with global career opportuni-

ties throughout the hiring process.

The EDS Brand Strategy and Advertising team

also coordinates with EDS Human Resources to

review training curricula addressing EDS values

and brand expression. These training materials are

updated on an ongoing basis as changes to our

brand strategy or expression arise.

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Labor Practices

EDS is committed to conducting business ethically and with integrity and promotes ethical leadership, ownership

and accountability. In addition, our global employment practices are broadly based on the concepts of decent

work and respect for human rights, including the areas listed below.

Freedom of Association and Collective BargainingEDS does not publicly disclose the percentage

of employees covered by collective bargain-

ing agreements; however, we respect the legal

rights of our employees to join or to refrain

from joining worker organizations, including

labor organizations or trade unions.

EDS complies with legal requirements world-

wide regarding employee and third-party

involvement, such as with labor and/or trade

unions or work councils. EDS’ long-standing

belief is that its interests and its employees’

interests are best served by maintaining a

collaborative work environment that allows for

direct communication between employees and

EDS leaders.

Monitoring and Follow-upEDS Global Marketing works closely with EDS Legal

Affairs to align to the highest ethical pursuit of brand,

nomenclature and advertising. To ensure our service

names are aligned with our naming conventions and do

not infringe on any legal rights, EDS searches the vari-

ous patent and trademark offices to assess existing or

pending trademarks on the names we select to use.

We also acknowledge our trademark ownership

through designated legal lines, being careful to include

other companies’ trademark information when appro-

priate (for example, as in the case of working with one

of our EDS Agility Alliance partners). We protect and

defend our trademarks and honor other companies’

trademarks and guidelines. Equally important, we take

the necessary legal action against other companies or

individuals who infringe on using the EDS name, logo

or other trademarks.

We work with our marketing vendors to make sure

they have appropriate brand training, ongoing con-

sulting and access to EDS brand assets. We post the

EDS brand expression assets on an external Web site

so outside vendors can have high-quality tools and

information. Each vendor must go through a security

clearance to gain access to this information.

We extend trademark license agreements to companies

that have a clear business reason for using our marks

and that are bound by contractual agreements. We

ensure the EDS brand standards and guidelines are

consistently implemented when extending these trade-

mark license agreements.

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Diversity and Equal Employment PolicyEDS does not publicly disclose discrimina-

tion incidents and actions taken; however,

EDS is an equal opportunity employer and

strives to treat its employees with respect

and dignity. Our diverse workforce provides

many benefits, including creativity, variety in

approaches to problem solving and the abil-

ity to work effectively as a global company.

EDS will comply with all applicable laws

prohibiting discrimination against any appli-

cant or employee. EDS’ Diversity and Equal

Employment Opportunity policy prohibits

discrimination on the basis of race, color,

religion, gender, sexual orientation, gender

identity, national origin, age, disability, dis-

abled veterans and veterans of the Vietnam

era. EDS selects and places employees, with-

out discrimination, on the basis of their qualifications

for the work to be performed. And its policy applies

to all personnel actions, including recruitment, hiring,

placement, promotion, separation, compensation,

benefits administration, training, education, social

and recreational programs, and the use of EDS facili-

ties. EDS also does not tolerate sexual harassment

or other unlawful behavior in the workplace, whether

committed by a co-worker, leader, client, contract

laborer, supplier or anyone else.

Notice of Operational ChangesEDS is committed to providing whatever advance

notice for significant operational change that is

legally or contractually required. Beyond that, the

length of advance notice EDS would provide for any

significant operational change would depend on the

particular situation at hand, including the nature

and type of change being made and consideration of

EDS’ and our clients’ overall best interest.

Injury and Fatality RatesEDS does not publicly release this information;

however, EDS wants its employees to have a

healthy, safe and secure work environment, as

free as possible from known health and safety

hazards. To help maintain an environmentally

safe and healthy workplace, EDS complies with

all applicable environmental laws and regulations.

For more information, refer to the Workplace

Health and Safety section of this report.

Child LaborEDS does not employ children, meaning a person

under the age of 16, or under the age for completing

compulsory education, or under the minimum age for

employment in the country, whichever is greatest. On

a limited basis, and in compliance with relevant laws,

EDS does permit children to work on a temporary

and/or seasonal basis (such as a high school student

performing appropriate work during a summer break).

Forced or Compulsory LaborEDS will not use forced or compulsory labor.

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Behind EDS’ promise to deliver on our commitments to clients are employees

who make it happen. We don’t take their dedication for granted. We offer a vari-

ety of programs to develop, reward, communicate with and include employees.

EDS works to increase employee motivation and job satisfaction by providing

employees career challenge and growth, valuable benefits, workplace safety

and security, and a sense of belonging.

workforceengagement

Global Workforce Strategy

Enterprise Global Workforce Strategy is an essential element to establishing a world-class, globally integrat-

ed workforce. Our objective is to provide clients with the right resources – the right skills, where and when

they need them, and at the right cost.

To accomplish this, Global Workforce Strategy

focuses on three distinct areas – Workforce Plan-

ning, Workforce Intelligence and Operations – that

align to support EDS’ and our clients’ needs. We

use common processes, rules and tools throughout

EDS to ensure greater consistency and efficiency.

And collaboration between the functional areas

provides us an enterprisewide view for resource

management and enables us to assess resource

availability for future projects.

In 2007, our focus was on laying the foundation

and beginning implementation of enterprise strate-

gies and methodologies, structuring the process

frameworks and implementing core tenets.

Global Workforce PlanningThe focus of Global Workforce Planning is to provide a consistent view of resource needs across

the enterprise, improving short- and long-term workforce planning. We use traditional workforce

planning processes with some distinguishing differences:

A patented Skills Catalog outlines the skills •aligned to each role and capability in

the company.

Resource demand and supply are monitored •for better planning and more efficient

deployment.

EDS resource management processes and •tools align with our career mobility policy.

Gaps and surpluses are identified through •the use of a Web-based Workforce Analytics

Dashboard.

Workforce analytics are done at a capability/•role and location level (not a head count level).

We create resource plans to fulfill resource •requirements by moving, reskilling, recruiting/

acquiring and rallying the workforce.

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Campus RecruitmentEDS’ Global Campus Recruiting program increases our

opportunity to hire students at the undergraduate and

MBA levels. The Global Campus Recruiting team helps

EDS meet its hiring needs by building relationships with

faculty, staff and students at university and college

campuses. We are then able to create a hiring resource

pool for a variety of full-time, part-time, temporary and

seasonal career opportunities.

EDS’ Campus Recruitment efforts extend beyond

campus visits to include career fairs, diversity fairs and

speaking engagements by senior leaders at universi-

ties across the globe. In many countries around the

world, local EDS offices offer internships, co-ops and

apprenticeships, in addition to opportunities for regular,

full-time employment to recent graduates.

Global Workforce IntelligenceThe focus of Global Workforce Intelligence is to build

an intelligence network that increases communi-

cation among the demand, supply and fulfillment

areas across the enterprise. This will enable us to

advance from being data providers to providing

business units with expert information that enables

evidence-based decision-making, including fostering

or enhancing memberships with benchmarking and

analytics-focused associations.

Global Workforce OperationsThe focus of Global Workforce Operations is provid-

ing operational support by aligning processes, tools

and reporting. Key components of this functional

area include Employee Skills Maintenance, a Work-

force Analytics Dashboard that provides an integrat-

ed view of EDS’ global resource supply and projected

demand, and Global Reporting Services, which

provides access to global people-related data.

Organizational ResponsibilityThe vice president of Global Workforce Management reports to EDS’ chief administrative officer.

Global Recruitment

One of EDS’ greatest strengths is its people – diverse, motivated people with the expertise and insight to tackle

the toughest client issues. As a company dedicated to helping our clients meet their commitments, EDS looks

for hard-working people who achieve results. EDS Global Recruitment leads that effort, working with our lead-

ers around the globe to ensure the right personnel resources are placed in positions in a timely manner.

Career opportunities include program and proj-

ect management, infrastructure and information

analysis, contact center support, accounting and

finance, sales and marketing, and human resources.

All careers come with opportunities for employees

to update their skills, build their knowledge and

increase their career options through training and

other valuable resources.

EDS places a core focus on recruiting and hiring

within regions and countries where EDS has a signifi-

cant operating presence. We have regional recruiting

teams, assisted by local search firms in many cases,

who assist local hiring managers in these endeavors.

For more information about careers at EDS, visit

www.edscareers.com.

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Academic RelationshipsEDS is on the cutting edge of research through

its alliances with many colleges and universities

around the world. We work with these institutions

on research and development, as well as educational

opportunities. Strong relationships between industry

and academia continue to promote new ideas and

solutions that ultimately benefit EDS and its clients.

Targeted universities include technical and state uni-

versities that offer education in the critical skill sets

EDS seeks, including computer science, engineering,

mathematics and general business.

Intern ProgramsEDS’ intern programs increase our ability to recruit

top college and university students for full-time jobs

after they graduate. These programs also strengthen

our relationships on campuses, increase awareness

of EDS and provide valuable work experience for the

interns. In the United States, during their eight-week

internship, interns meet EDS leaders and are encour-

aged to participate in a case-study competition.

Interns are assigned a mentor to assist with acclima-

tion and to advise on career paths EDS offers. Similar

intern programs exist in other EDS regions based on

local university cycles.

2007 PerformanceIn 2007, EDS enhanced recruitment programs to

supplement global hiring efforts and strengthen

the ability of EDS’ workforce to support our clients.

Refreshed components include the following:

Global employee referral program•

Internal job board•

Recruitment advertising campaign and •corresponding collateral

Redesigned public Web site•

Recruitment training programs•

EDS’ internal global recruitment Web site•

Recruiting for Ability

In India, EDS hired 84 persons with disabilities, a 100 percent

improvement from 2006. With a retention rate of 99 percent, the

momentum is continuing in 2008 with a focus on increasing support

for employees with disabilities in terms of access, availability of

wheelchairs and other support.

Organizational ResponsibilityThe director of global recruiting reports to the vice

president of Global Workforce Management, who

reports to EDS’ chief administrative officer.

Executive Talent Management

EDS uses a business-driven and HR-enabled approach to select, develop and prepare executive leaders for

future organizational needs to maintain business continuity. Our approach, guiding principles, corporate tools

and processes enhance our ability to build a diverse pipeline to fill executive and business-critical senior

leadership positions with qualified candidates. Those same tools and principles help us identify and develop

successors from a diverse slate of candidates for these positions. Additionally, EDS Global Recruitment works

with local leaders and global search firms to see that the right senior leaders are placed in positions in a

timely manner.

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Developing LeadersEDS Executive Talent Management works with our

top business leaders to assess and create develop-

ment for EDS’ current senior leaders and high-

potential talent in each geography. We use several

different types of development options, including

leader-sponsored development opportunities,

independent development and training opportuni-

ties, and coaching engagements with executive

coaches.

EDS maintains relationships with universities

around the globe to offer executive programs that

align with the EDS leadership competencies. And

through EDS’ relationship with industry-leading

executive coaching firms, our top leaders have ac-

cess to coaches who are experts in leadership, local

cultures and communities.

2007 AccomplishmentsIn 2007, EDS launched an initiative to assess and

develop EDS’ top leaders. This initiative culminated

in assessments and customized personal develop-

ment plans for 50 senior EDS executives, with

quarterly follow-up with each leader by an EDS

Executive Talent Management representative.

Portions of the executive population experienced a

job progression or expansion as part of their devel-

opment, while other portions of the population par-

ticipated in a deliberate, business-driven expatriate

assignment that contributed to their development.

EDS also expanded university offerings and inter-

nal and external coach offerings to executives in

targeted areas. Finally, executive hiring remained

on target, with specific key hires in each region to

create local talent pools that can be augmented

with expatriate assignments on a deliberate, as-

needed basis.

Learning and Development at EDS

Global Learning & Development’s (GL&D) vision is to become a marketplace differentiator for EDS and its

employees by delivering business results through effective people development. To achieve this vision,

GL&D works in partnership with business leaders and key stakeholders to create and provide learning strat-

egies and development offerings that align to EDS enterprise goals, empower employees to achieve their

full potential and foster a learning culture.

EDS Learning Development and Performance Blueprint

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An Online Gateway to Learning and DevelopmentTo support its learning approach, EDS offers employees

the myWorkLife portal. This intranet site is a one-stop,

online gateway to EDS’ learning and development op-

portunities. In the first quarter of 2007, EDS issued

a significant new release of myWorkLife portal that

expanded functionality for EDS’ large business units (for

example, General Motors) so they can assign training

packages to individual functions within their units and

track completions. Employees received an enhanced

view of their learning plans and access to a new EDS

Internal Job Board to help when searching for new EDS

jobs or assignments.

Training Area2007

Completed Hours2006

Completed Hours2005

Completed Hours

General Topics (such as business, finance, legal and corporate systems, language, communications and personal development)

993,892 1,066,998 709,676

Sales 87,696 77,120 144,951

Leadership/Mentoring and Coaching 233,857 83,475 214,983

Program and Project Management 146,161 146,036 132,755

Technical Development 876,964 564,098 409,954

Business Unit-specific 584,642 474,707 237,813

TOTAL HOURS 2,923,212 2,412,434 1,850,132

2007 Training Hours

EDS supports a learning approach that includes lecture-

style training, leader-led development, assessments,

mentoring and coaching, and experiential learning. In

2007, EDS made approximately 8,800 various courses

available to its employees.

Leaders play an important role in supporting the

learner. EDS helps enable this process by providing

the learner and leader with the necessary tools and

support structures.

In 2007, EDS made available to its global employees

mentoring and coaching opportunities in 180 different

subject areas, including career development. Employees

had access to more than 350 role-based development

paths outlining key options to support development of

defined job family skills and competencies.

Career Planning and DevelopmentDeveloping employees to better meet EDS clients’

needs and support individual development goals is

central to our legacy and a long-held value of the

company. EDS supports employees who are inter-

ested in developing their careers, seeking new job

opportunities or learning new skills through an inte-

grated career planning process.

By supporting employee career planning and develop-

ment, and upgrading our workforce’s capabilities, EDS

ensures we have the skills needed to drive innovation

and service delivery to our clients. And at the same

time, it supports our employees in achieving their

professional goals.

Employee DevelopmentGlobal Learning & Development is EDS’ central resource

responsible for supporting employee development

through education and training. EDS adopts industry

best practices with regard to learning – tying learn-

ing to business impact, treating learning as a process,

creating an EDS learning culture and developing an

integrated human resources approach. EDS’ move-

ment away from a training-based curriculum to more

robust development paths means training is only

part of learning. Practice, coaching and mentoring,

assessment, and on-the-job application are all part of

the learning process.

2007 AccomplishmentsThis section includes significant 2007 statistics and accomplishments within our learning and development portfolios.

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Leadership/Mentoring and Coaching

EDS offers a variety of leadership development pro-

grams that achieved high participant ratings in 2007.

Those programs, many of which are taught by EDS

leaders, include the following:

Account Executive Development Workshop – Helps

global account executives improve client relation-

ships, client satisfaction, organizational effectiveness

and deliver improved results

Leader of Leaders Program – Provides leaders guid-

ance on EDS executive direction and EDS leadership

competencies, equipping and enabling them to meet

EDS’ strategic goals

First-Line Leaders Program – Integrates best practic-

es from successful external leadership development

programs and from alliance partner thought leader-

ship, expertise and programs

Emerging Leaders Program – Helps EDS’ emerging

leaders enhance their basic leadership skills and ap-

ply them to better create and maintain relationships,

organize time, and manage employees. EDS worked

with Harvard Business School to create this high-im-

pact learning experience, so it is tailored to the needs

of EDS’ emerging leaders. The program was rolled out

globally in October 2007.

Rotational Development Programs – Close gaps in a

leader’s needed practical experience through expe-

riential learning. For example, in 2007, the Emerging

Finance Leader Rotational Development Program was

launched with participants from the United States,

the UK and Australia.

Mentoring and Coaching – Includes training on coach-

ing skills and internal coaching engagements. This

program received industry recognition at the Execu-

tive Coaching Conference Board events in 2007.

Technical Development

EDS’ technical development programs serve as the foun-

dation for building and enriching the skills of our valued

technical community. Today, EDS offers a comprehensive

curriculum for all technical employees – from entry-level

through senior architect positions. Following are EDS’

key technical development programs.

Accelerated Professional Development (APD) program

for entry-level technical employees hired from college

campuses worldwide – In 2007, EDS delivered classes

in the United Kingdom, China, Egypt, Belgium, Texas

and Michigan. Since its inception in 2006, EDS has

retained 96 percent of the program’s graduates, and 91

percent of program participants in India were still with

the company.

Continuing Technical Education – Role-based develop-

ment paths for all technical positions in the company,

focusing on the systems EDS implements and man-

ages, IT certification preparation and courses in the

tools, methods and technologies critical for support-

ing EDS clients.

Technical Certifications – Also in 2007, EDS continued

working closely with our technology alliance partners,

who provide access to resources such as the Microsoft

Partner Program Portal, Cisco Partner E-learning Con-

nection, Sun Learning Connection Portal and Oracle

Partner Network Portal to enable employee technical

certifications.

Lean Six Sigma – An integral part of how we build the

management capability needed to drive and sustain con-

tinuously higher levels of performance, including these

four development programs/courses:

Lean Six Sigma Overview – a Web-based •introduction to Lean Six Sigma

Quality Basics – Lean Six Sigma for Practitioners •(delivered in United States and Latin America)

Lean Six Sigma Green Belt (launched in 2007)•

Lean Six Sigma Black Belt (completed 10 waves •of training)

Last year, EDS realized $16 million in savings from

projects led by Black Belt graduates in the Midwest Hub.

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EDS Onboarding

In 2007, the EDS Acclimation Process was reengi-

neered and renamed the EDS Onboarding Process.

The new process provides a high-touch approach

to help new employees learn about EDS as they

learn their job-specific responsibilities.

Parts of the program are still under development,

but in 2007, GL&D developed and piloted a one-

hour teleconference that will run weekly in each

global region and will be delivered in the local lan-

guage. Example topics include a welcome to EDS,

company overview, company history, local orienta-

tion and a helpful Web site.

Organizational ResponsibilityThe global director of GL&D reports to the vice

president of Global Workforce Management, who

reports to EDS’ chief administrative officer.

Awareness and CommunicationEDS uses a number of internal channels to com-

municate the value, benefits and availability of

learning and development programs. Internal

communication channels include a Web site and

portal, the corporate intranet, and corporate

communication resources such as a weekly e-mail

newsletter for employees and biweekly e-mail

newsletter for leaders.

Evaluating Our Learning ProgramsWe measure the impact our initiatives have on

equipping our people to perform, to sustain per-

formance after training and to influence business

objectives. The measurement strategies vary

among initiatives and include evaluations, surveys,

interviews, focus groups, case studies, balanced

scorecard data or any combination of these tactics.

EDS also works internally to measure key metrics

on employee satisfaction and works within the

leadership team to enhance and improve em-

ployee satisfaction and productivity. Moreover, the

strategies used are influenced by ongoing research

and discussions with other organizations via the

American Society for Training and Development

Benchmarking Forums.

Monitoring, Correcting and Preventing Technical Courseware IssuesThe Global Learning & Development Assistance

Center is an employee’s contact for technical is-

sues related to training courseware (for example,

if he or she encounters a problem while taking a

Web-based course). Through the GL&D Web site,

employees have access to the worldwide e-mail ad-

dresses and toll-free and local phone numbers for

the center. The Assistance Center is available 24

hours a day, seven days a week.

The GL&D Assistance Center employs case

tracking, an escalation process, communication

with GL&D leadership, metrics monitoring, trend

analysis, random surveys of callers and other tech-

niques to ensure problems are quickly resolved and

processes are continually improved.

Monitoring, Auditing and Verifying GL&D’s Supply ChainEDS is a large consumer of third-party learning

and development products and services, approach-

ing the market in three main segments: content,

services and technology.

GL&D’s strategy for monitoring, auditing and

verifying its supply chain can be described as one

of corporate compliance and leverage. EDS has

well-established finance, legal and supply chain

management organizations. They are responsible

for EDS’ compliance with generally accepted

accounting principles and other related require-

ments, as well as establishing leverageable policies

and processes for effectively interacting with the

marketplace.

GL&D collaborates with these organizations to

ensure its effectiveness and adherence to re-

quirements. To that end, GL&D created the role

of supplier manager, who serves as single point

of contact for all GL&D personnel with respect to

third-party sourcing. This individual also serves as

a liaison to EDS Supply Chain Management, Legal

Affairs and Finance to ensure compliance to corpo-

rate processes.

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Performance Management

Because performance is at the core of our business,

we believe the results our company achieves can be

only as strong as each individual. Our Performance

Management program enables an active partnership

between leaders and employees to improve perfor-

mance and align contributions with EDS’ goals, values

and business imperatives.

All EDS employees worldwide – our HR business

partners, leaders of leaders and first-line lead-

ers, EDS executives, and all other employees – are

engaged and directly touched by the Performance

Management program.

Performance Management at EDS

2007 PerformanceOur Performance Management program continued to

evolve in 2007 to improve individual performance and

meet the organization’s business needs. This evolu-

tion is partially driven by best-in-class research and

benchmarking. We participate in annual benchmarking

activities with various consortiums (such as the Attri-

tion and Retention Consortium) and publications. Our

compliance and completion numbers steadily increase

each year.

All employees – except those in nonparticipating

countries or where exempted by specific employment

agreements or local law – participated in the Perfor-

mance Management process in 2007. More than 90

percent of the eligible population received complete

performance assessments.

In 2007, EDS met its performance management goals

of implementing updated corporate shared competen-

cies to the global audience, integrating the goal clarity

and performance management tools and updating the

goal format structure.

Additionally, in 2007, EDS implemented a semi-annual

performance evaluation process, leader calibration

sessions to facilitate a shared view of performance

expectations and results, and increased employee en-

gagement in the performance management process.

We launched the myPerformance Web site in 2007.

It was specifically designed to increase employee

engagement in performance management activities.

The site, which provides employees visibility into

individual and team performance goals, offers a shared

competency assessment tool and provides additional

functionality designed to engage employees in manag-

ing their performance.

Organizational ResponsibilityEDS leaders are accountable for executing perfor-

mance management. The process and program are

supported by EDS’ executive leadership team and

communicated down their leadership chains. Top-

level leaders are accountable for ensuring alignment

of individual performance results to business results

and for approving the results at the end of the per-

formance period.

Training and AwarenessPerformance Management communicates with stake-

holders year-round and provides direct communica-

tions to the HR business partners, as well as some

leaders. Multiple training materials are available to

leaders through the EDS intranet. Web-based training

and tool demonstrations are available. We also have an

extensive Help document with step-by-step instruc-

tions for the tool and associated screen shots.

The Performance Management tool is available in Eng-

lish, French, German, Italian and Spanish.

EDS’ Performance Management process is also

highlighted in the EDS Onboarding Process for new

employees.

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Monitoring and Follow-upThroughout the Performance Management cycle,

reports are provided to HR business partners and

leaders to monitor the progress of key program activi-

ties. Leaders also have direct online access to detailed

reports about their organization.

We hold debriefs with key stakeholders at the end of ev-

ery performance cycle. These stakeholders are from all

levels of the organization and across many industries.

Their feedback is reviewed for possible enhancements

Diversity and Inclusion

Our workforce of more than 139,000 employees – who speak 47 languages and work in 65 countries – is a

reflection of the diversity that exists at EDS. We value the different skills, backgrounds, experiences and per-

spectives throughout our global community and acknowledge these qualities as a competitive differentiator in

the marketplace.

Guiding PrinciplesAt EDS, our vision is to be recognized as a global leader in diversity and inclusion, to be a preferred employer

for the best talent in the IT services industry, and to cultivate a self-sustaining culture of diversity and inclu-

sion. Our mission is to maintain an inclusive environment in which employees believe they are valued and re-

spected, have opportunities for growth, and are engaged in contributing to EDS’ success. Our guiding principles

are realized through our diversity and inclusion infrastructure.

Leadership-led Diversity and Inclusion InfrastructureOur leaders are committed to

sustaining an inclusive culture

that fosters individual and or-

ganizational success. To ensure

EDS excels in its diversity and

inclusion efforts, we have a solid

infrastructure to help realize our

vision, illustrated here.

The Corporate Diversity Council,

Regional Diversity Councils and

Employee Network Groups are

the foundation for EDS’ diversity

and inclusion strategy, which is

integrated into corporate policies and practices. Results are achieved through collaboration among HR teams

that encompass benefits, recruiting, talent management, and learning and development.

to the program. Feedback from 2007 was care-

fully reviewed, and plans were put in place to make

improvements in the 2008 program.

EDS is audited every year for compliance with

the Sarbanes-Oxley Act of 2003 by internal audit

teams and the company’s external auditor. Our

Performance Management program audit results

were compliant in 2007.

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The Corporate Diversity Council (CDC) consists of senior executives who set EDS’ diversity goals and support

processes, practices and policies that promote an inclusive work environment.

The Regional Diversity Councils represent global geographies. They establish initiatives for their specific

region according to the direction of the CDC. Key accomplishments for 2007 were related to mentoring and

coaching, continuous learning, recruitment, communications, supplier diversity, and community outreach.

Employee Network Groups are formed by employees to reflect their members’ common goals and viewpoints,

while focusing on EDS business. These groups are global and open to all employees and include the following:

Asian Pacific American Community at EDS•

EDS Women’s Fellowship•

EDS Christian Fellowship•

Global Women’s Network•

Recruiting and Workforce Management are fundamental entities of our diversity and inclusion framework.

Practices and policies include strategic hiring and succession-planning processes that build diverse pools of the

best candidates.

Learning and Development – Diversity and inclusion learning opportunities are offered in orientation training

for leaders and employees, instructor-led and online Web-based courses, seminars, and workshops.

In 2007, EDS held several instructor-led, one-day Managing Inclusion sessions for the most senior leaders.

The sessions were customized for EDS and aligned to business initiatives. In addition, employee registration

for online Web-based culture and inclusion courses exceeded 6,800 enrollments globally. Recruiters attended

Inclusion Through Selection workshops to help align EDS’ diversity strategy with corporate recruiting efforts.

Diversity and inclusion presentations by consultants and external speakers were also available to EDS

employees worldwide through the Global Broadcast Network.

For more information about diversity and inclusion at EDS, visit http://www.eds.com/about/diversity/.

Investing in the Workforce – Present and FutureEDS builds professional relationships and fosters

activities with organizations around the globe. We

influence the future workforce through our investments

and resources deployed to organizations that share

our viewpoint. The following examples illustrate EDS’

engagement externally and internally:

Sponsored World Disability Day at India Gate, •where thousands of disabled people took part in

the 11th Walk to Freedom. This initiative was part

of the Diversity Week planned activities organized

by EDS employees. The week’s events also

included observance of World AIDS Day.

Continued diversity internship program for •indigenous students in Australia. The company

sponsored four indigenous tertiary students with

interest in business and technology with a

paid internship.

World Disability Day has traditionally been celebrated at

the India Gate. The World Disability Day celebration was

sponsored by Steel Authority of India Limited, MphasiS

(an EDS Company) and EDS.

Gay and Lesbian Employees at EDS•

Hispanic Employee Resource Organization•

Unity in Action (African-American)•

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2007 Marketplace RecognitionThe marketplace sees EDS demonstrating its commitment to diversity and recognized the corporation

for its efforts in this area in numerous ways, including these:

Achieved Bronze Level of Progressive •Aboriginal Relations Certification by Canadian

Council for Aboriginal Business

Selected as one of • DiversityInc magazine’s 25

Noteworthy Diversity Companies

Named Corporate Sponsor of the Year – •Information Technology Management Award for

Professional Achievement by the Information

Technology Senior Management Forum

Honored as Most Admired Employer by • US

Black Engineer & IT magazine

Honored among Top 50 Military-Friendly •Employers by G.I. Jobs magazine

Received a Corporate Champion Award from the •U.S. Department of Veteran Affairs

Received Service Disabled Veteran-Owned •Small Business Award from the U.S. Department

of Defense

EDS’ vice president of U.S. Communications, •Media & Entertainment was recognized as One

of Most Powerful Women in Technology Channel

by CMP Channel’s VARBusiness Magazine.

EDS’ vice president and CFO of U.S. •Government region was honored for

professional achievement, and seven EDS

women were honored for technology all-stars

by Women of Color Technology Awards.

EDS consultant awarded Employee of the Year •by Careers & disABLED magazine

Received Best Employer Award for 50 Plus by •Canadian Workplace Institute

EDS’ vice president and CFO of U.S. •Government region was honored with a Greater

Washington Technology CFO Community

Service Award by Northern Virginia, Maryland

and D.C. technology councils.

Continued partnership with U.S. INROADS •student internship program. Twenty-nine interns

participated.

Maintained the prestigious Canada Bronze •Progressive Aboriginal Relations (PAR) rating.

The PAR program helps companies benchmark

their work with Aboriginal people, businesses and

communities and is managed in partnership with

the National Quality Institute.

Sponsored annual bursary program, administered •by Canada’s National Aboriginal Achievement

Foundation, targeting Aboriginal youth in the

province of Manitoba who are pursuing post-

secondary education in information technology.

This annual program currently consists of 10

bursaries of $4,000 each.

EDS sponsored 64 women in the Menttium •Mentoring Program. Menttium is a global leader in

formal corporate mentoring for women.

EDS founded a Diversity Roundtable consisting of •diversity professionals from large organizations

in Canada. Current membership has increased to

more than 35 participating companies.

Continued the “Leaders and Emerging Leaders” •mentoring program in the United States, Canada

and Europe to build an inclusive community of

leaders, provide a more diverse leader pool, and

enhance productivity and business profitability.

More than 85 leaders participated in the nine-

month program.

The EDS Diversity Pacesetter Award was •presented to several EDS employees in the United

States, New Zealand, the United Kingdom and

Canada. The Pacesetter Award honors employees

who have demonstrated an exceptional or

outstanding commitment to promoting and

supporting diversity in the workplace and who

serve as role models for creating an inclusive

environment.

Established Diversity Day as an excused paid day •for employees in New Zealand and Brazil.

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Commitments to External InitiativesHere are some of the EDS-supported organizations that promote diversity, education, recruiting

and professional achievement:

Global and U.S. Workforce DemographicsAs of December 31, 2007, EDS’ workforce was made up of approximately 139,000 employees who live

and work in 65 countries.

2007 Global Diversity Demographics Female %

Global workforce 35

Global managers and supervisors 27

2007 U.S. Diversity Demographics Female and Minority %

U.S. workforce 54

U.S. managers and supervisors 43

Black Data Processing Association•

Black Engineer of the Year Awards Conference•

Black Tie Dinner, Inc.•

Canadian Council for Aboriginal Business•

Catalyst•

Chinese Institute for Engineering•

Conference Board of Canada•

Enable India•

Foundation for Physically Disabled Persons •(Canada)

INROADS•

Mentium•

National Aboriginal Achievement Foundation •(Canada)

National Association of Black Accountants •(United States)

National Black MBAs Association •(United States)

National Center for Women & Information •Technology (United States)

National Society of Black Engineers •(United States)

UK Employers Forum on Disability•

UNCF•

Women on Board•

Women of Color Technology Awards Conference•

Received the Australian Human Resources •Institute Award for outstanding improvements

in people and business management practices

An EDS employee received the Black Engineer of •the Year Award (BEYA) for Special Recognition

by Career Communications Group Inc.

EDS’ chief technology officer for Financial •Services received the IT Woman of the Year

Award (Nomination) by Association for Women

and Computing.

Recognized by the Human Rights Campaign •for a Corporate Equality Index of 90, a 20-

point improvement over last year and higher

than the average of 81 achieved by other

Fortune 500 companies.

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Compensation and Benefits

EDS demonstrates its appreciation of employees through our compensation and benefits programs, which

provide flexible choices and multiple options to meet employees’ needs. We offer our employees health benefits

(medical, dental, vision), security benefits (life insurance, disability), pension and savings programs, time off

and flexible spending accounts. These standard benefits may vary slightly by country.

New programs introduced in 2007 included these:

Benefit ProgramsEDS offers a range of programs to help employees balance their career and work/life needs. The programs listed

below, although primarily specific to United States employees, are representative of the types of programs we

may offer worldwide.

AwardsEDS is ranked 17th among G.I. Jobs magazine’s list of “Top 50 Military-Friendly Employers.” It is EDS’ third

recognition in the five-year history of the list. The publication also evaluates Fortune 1000 companies’

military recruiting efforts and percentage of new hires with prior military service.

Auto/Home/Renter’s Insurance – Enables EDS

employees on the U.S. payroll to purchase auto,

home and other personal insurance coverage at

group rates through Liberty Mutual

Back-up and Emergency Childcare and Eldercare –

Gives employees access to a national network of

high-quality care solutions for their children and

elderly family members

Credit Monitoring and Identity Theft Protection –

Provides employees with discounted pricing on one

of three different levels of credit monitoring and

identity theft protection services

Funeral Planning Services – Provides employees

access to online planning tools and advisors who can

help plan funerals and concierge services to assist at

the time of death, at no cost

International SOS – Provides EDS employees who

travel outside their home country on company

business access to emergency medical, safety and

security resources

401(k) Plan – Added a Roth 401(k) plan investment

feature, started automatic enrollment for newly

hired employees and shortened the vesting for the

employer-matching contribution from five years to

three years

Benefit Program Highlights

Active Duty Leave of Absence Integrated Disability Services

Adoption Assistance Life Stages and Wellness Programs

Alternative Work Arrangements Maternity Leave

Bereavement Leave On-site Health and Wellness Services

and Programs

Concierge Program Out-of Country Medical Insurance Plan

Credit Union Parental Leave Program

Discounts Pension Plan

Employee Assistance Resource and Referral Program

Employee Recognition Severance Program

Employee Stock Purchase Plan Tuition Assistance Program

Financial Planning and Services Vehicle Discounts

Health Questionnaire WebMD

HR Help Desk Worldwide Assistance Service

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CompensationEDS strives to provide competitive compensation and

believes employees should be rewarded based on indi-

vidual and team contributions, within the boundaries of

corporate performance and affordability. We target pay

at the median of our competitive market, with leader

discretion to pay above/below the median based on an

employee’s contribution and performance. EDS’ pay

policies and practices are reviewed at least annually

to ensure they are competitive in the global markets

where EDS has an employee presence.

The labor markets in which EDS operates and com-

petes are clearly influenced by the nature of the

services offered. As such, a substantial portion of EDS’

global workforce consists of highly skilled and edu-

cated employees whose pay generally is not subject

to minimum wage rules. In locations where employee

wages are subject to minimum wage rules, EDS pay

policies and practices comply with applicable state/

province/local statutes and in most cases, exceed the

prevailing wage requirements.

Bonus PlansEDS provides cash incentives to employees through

three primary, companywide bonus plans – each with

a unique objective and purpose. The Corporate Bonus

Plan unites senior leadership positions across the

company into one plan. The Bonus Plan for Selling pro-

vides commissions and cash bonuses for employees

participating in the sales process. The Project Perfor-

mance Bonus Plan allows leaders to reward employees

who have demonstrated exceptional performance with

cash payouts throughout the year and the opportunity

for additional bonus funding at year-end, based on

EDS’ financial performance.

Equity CompensationThe EDS Incentive Plan is a shareholder-approved eq-

uity plan. Stock options, restricted stock units (RSUs)

and stock awards are issued from this plan.

Organizational ResponsibilityGlobal Compensation and Benefits (GC&B) at EDS is a

part of the overall Chief Administrative Office in Human

Resources. The vice president of GC&B is responsible

for all compensation and benefits programs globally.

Regional GC&B leaders are responsible for strategic

and administrative oversight of all compensation and

benefits programs within their region. The GC&B philos-

ophy is one of “global deal with a local feel.”

Training and AwarenessEDS uses multiple avenues to educate and inform the

employee. These range from high-tech communication

streams such as global broadcast network sessions,

intranet portals and monthly e-newsletters to posters,

flyers, table tents, lunch and learn sessions, and on-

site health fairs.

There is also ongoing vendor training to ensure contin-

uous improvement and maximization of our programs.

We accomplish this with monthly meetings, annual

audits, quarterly utilization reviews and employee

surveys conducted by our vendors.

Monitoring and Follow-upEDS regularly engages stakeholders, providers and

employees to monitor the quality of compensation

and benefits programs and improve offerings. Some

examples follow:

We perform an annual market analysis •on compensation and benefits programs,

benchmarking against peer groups in local markets,

with periodic checkpoints during the year.

Annual trust audits on retirement and health and •welfare plans are performed by third-party auditors.

We perform claims/appeals audits using third-party •auditors to confirm health plans are administering

benefits correctly according to plan.

EDS performs annual on-site Health Advocate/•Health Coach clinical assessments to assure

continued high performance standards.

All health plans have performance guarantees in •place as part of the contract agreements. These

include operational and clinical metrics, which are

measured and reported on at least quarterly.

We have monthly and ad hoc meetings with vendors •to review operational issues and trends that require

corrective action.

Benchmark assessments of all benefit programs •are performed annually to ensure benefits

are competitive.

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Workplace Health and Safety

EDS is responsible for providing a safe and healthy work environment for employees, contractors and visitors.

At sites not owned by EDS but where our employees office, we work with facility management, building landlords

and clients to fulfill this responsibility. These agreements with facility management and security service provid-

ers ensure our business locations receive immediate response to medical emergencies and evacuation assistance

if necessary.

Health and Safety TeamOur global, cross-functional Health and Safety Team

meets quarterly and as required to address health and

safety issues related to our business environment. The

team engages the necessary internal and external par-

ties to mitigate health and safety concerns in normal

day-to-day operations and crisis situations. The team

also monitors world events, global travel advisories and

health alerts that might affect EDS operations, employ-

ees and clients. Precautions and/or required actions are

communicated as necessary to our employees.

Crisis Management and Business ContinuityEDS relies on a proven business continuity methodol-

ogy that includes planning by each geographic unit of

organizations. This ensures that if a disaster occurs, all

of EDS’ resources can resume business operations and

deliver results for clients as quickly as possible.

If a situation requiring heightened attention occurs, our

Crisis Management Team (CMT) engages and leads the

effort to ensure employee safety and continuity of busi-

ness operations. The team also coordinates commu-

nications with employees, clients and the local media

until the emergency situation dissipates.

A global report indicating the number and location of

employees and expatriates is updated monthly as part

of our Crisis Preparedness Plan. We are also able to

contact employees traveling on EDS business should

situations occur that require additional safety precau-

tions or early departure.

EDS characterizes emergencies as extraordinary

events that potentially could affect the health and

safety of employees and/or disrupt business opera-

tions. Extraordinary emergencies include man-made

or natural disasters, terrorist acts, kidnap and

hostage situations, loss or theft of personal data

belonging to clients or EDS, or the possible presence

of an infectious disease in the workplace.

The CMT, facilitated by the Chief Security & Privacy

Office (CSPO) organization, provides enterprisewide

oversight of all extraordinary EDS emergency situa-

tions. The CMT has cross-functional representation

from EDS’ core operations and business support

units and is equipped to advise and assist field

operations and employees in relevant matters. The

CSPO organization manages CMT activities from the

EDS Support Center in Plano, Texas.

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Power was disrupted when ice weighed down tree

limbs, which then crashed into electrical wires.

When cold temperatures and freezing drizzle

produced Oklahoma’s largest power outage in his-

tory last December, EDS stepped in to assist local

employees.

The storm blacked out a half-million homes and

businesses in the Tulsa and Oklahoma City areas

and was blamed on at least 15 deaths. Power was

disrupted when ice weighed down power lines and

sent tree limbs crashing into electrical wires.

“As we’ve done with other events, we assist em-

ployees who require help,” said Richard Menyes of

EDS’ Chief Security and Privacy Office. “We did put

several employees in alternate living arrangements.

One employee had no power and had elderly par-

ents; one had a pregnant wife. About half a dozen or

so required some assistance.”

Workplace Safety GuideThe EDS Workplace Safety Guide defines health

and safety responsibilities (and accountabilities)

for leaders and employees. We operate in a manner

that recognizes each country is subject to its own

individual legislation, which is enacted and enforced

at that level.

Emergency Evacuation PreparednessIn 2007, a Floor Marshall Program was implemented

on the EDS Plano campus to provide guidance to

leaders and employees to ensure that preplanned

evacuation procedures are followed. An evacuation

may occur in the event of an internal fire, chemi-

cal release, weather, bomb and/or terrorist threat.

The program covers different levels of evacuation,

communication processes and the organizational

response to an evacuation alert.

Automated External Defibrillators and CPRIn 2007, we deployed automated external defibril-

lators (AEDs) at our Plano, Texas, headquarters and

certified employees in defibrillator operation and

cardiopulmonary resuscitation (CPR). An AED/CPR

medical alert notification program was developed

and implemented, activating responders to any

medical emergency. The AED program is available

to all EDS facilities.

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Employee Communications

Our global employee population and client base necessitates a variety of communications channels to connect with

our teams in the field – many of them working on client sites. EDS emphasizes leader-led engagement with employ-

ees, supported by Web-based, e-mail and multimedia communications.

EDS Global Communications manages several media

channels that provide timely news and information to

our global employees. The home page of EDS’ intranet,

called infoCentre, serves as a news portal. And a week-

ly e-newsletter called Abbreviations summarizes major

news for all employees. In 2007, EDS began translating

Abbreviations into five key languages to accommodate

our non-English-speaking employees.

Additionally, EDS Global Communications manages

multiple channels that provide messages and tools

supporting leader-led communications, including the

Leaders Online Web site and an e-newsletter called

Leaders’ Abbreviations.

Our major regions and business segments use similar

channels. This enables news and information to be

localized and communicated in multiple languages.

Today, almost all of EDS’ employees are connected to

our intranet, either through direct network access or

through Internet dial-up capabilities. And 87 percent

of employees are connected by a single e-mail sys-

tem. Most exceptions are those employees working on

stand-alone, secured computer and e-mail systems at

client locations.

Innovations in communications are an EDS strength. In

2007, EDS introduced a digital messaging network that

delivers information using plasma screen technology

currently located in public spaces of our headquarters

facilities. The system enables local, national and inter-

national news and information to be easily customized

for other EDS locations. EDS also uses the EDS News

Widget, an interactive news scroller that brings up-to-

the-minute EDS news, IT industry news, global news

and stock quotes directly to employees’ desktops.

Global Travel SecurityAs part of an ongoing commitment to safeguard

employees, EDS and its subsidiaries restrict travel

to certain locations for health and safety reasons.

Essential business travel is permitted to restricted

locations, provided the employee is comfortable with

traveling to those regions and has received leadership

approval and concurrence from the EDS Chief Security

& Privacy Office.

In 2007, EDS contracted worldwide employee benefits

for international medical, security and travel assis-

tance. Our partner is the world’s largest medical and

security assistance company, with more than 5,000

professionals in 24-hour Alarm Centers, international

clinics and remote-site medical facilities across five

continents. EDS employees traveling outside their

home countries on company business have access to

emergency medical, safety and security resources.

Monitoring and Follow-upThe Crisis Management Team will continually support

our clients and EDS through effective crisis man-

agement post-incident findings, while improving on

communication and operational processes through

organizational and self-assessment. This continual

process of self-evaluation improves our efficiency in

responding to global events.

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Leaders to EmployeesLeaders at every level of EDS regularly communicate

with employees using formal and informal techniques.

Common methods include town hall meetings, small

gatherings, targeted newsletters and e-mail messages.

More formal channels are used to provide direction

and obtain feedback. Formal channels include internal

news and perspective stories in corporate media, EDS

Minute videos, and face-to-face opportunities.

In 2007, EDS continued to expand its Global Broadcast

Network capabilities to reach a worldwide employee

and client audience. EDS makes broadcasts available

via an Internet-accessible live Windows Media video

stream for employees who work at home and on cus-

tomer account sites. The company continued its highly

successful By Request television program, which uses

a live question-and-answer format to enable employ-

ees to ask questions and receive immediate responses

from senior executives. There were 325 broadcasts

in 2007, delivering more than 96,000 program hours

covering such programs as organizational town halls,

technology and financial training, and employee

benefit presentations. The network also targeted EDS

clients with programs on technology that they use in

their work environment.

Communications Measurement and RecognitionWe regularly measure the effectiveness of commu-

nications through annual and quarterly surveys and

through other feedback mechanisms.

EDS’ employee communications approach is award-

winning and has been recognized as a best practice

by several external influencer organizations, such as

the Conference Board, the Public Relations Society of

America and the International Association of Business

Communicators. In 2007, EDS communications leaders

were asked to speak about the company’s employee

programs at several national conferences.

Employees to LeadersEDS provides numerous outlets for employees to

share their thoughts and opinions with leaders.

Senior executives have e-mail centers that enable

employees to e-mail questions directly to executives

and receive timely responses. EDS’ intranet, with its

constantly updated corporate news and message

boards, enables employees and leaders to give im-

mediate feedback on content.

EDS’ Voice of the Employee survey is another way for

employees to share their thoughts with EDS lead-

ers. Surveys are highly customized and aligned to

business goals. Feedback relating to engagement and

effectiveness allows leaders to create and implement

action plans to maintain a productive and satisfying

work environment.

More formal communications processes, such as EDS’

Open Door Policy, encourage employees to share

ideas and concerns, seek guidance and advice, or re-

port known or suspected “business abuse.” The EDS

Office of Ethics and Compliance provides employees a

place to report business abuse – any illegal, unethical

or irresponsible act that may cause harm or loss to

EDS, our employees or our clients.

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Our employees also give their time and talent.

In 2007, EDS employees provided approxi-

mately 135,000 hours of community service to

the projects and initiatives that are important

to them. According to U.S. labor statistics, one

volunteer hour is worth $18.05, which would

place the value of these volunteer hours at

more than $2.4 million.

EDS’ community affairs activities center on

educational initiatives, applying technological

know-how and empowering employees to get in-

volved in their communities. We focus on three

major global programs: Technology Grants,

Education Outreach and Global Volunteer Day.

We support these initiatives by encouraging

employee volunteerism, making contributions to

nonprofit organizations and sponsoring events.

EDS Corporate Contribution Guidelines are

approved by the EDS Board of Directors and

adhere to applicable laws, including U.S. Internal

Revenue Service guidelines and U.S. Patriot

Act provisions. For more information about

the programs in which we are involved or EDS

Corporate Contribution Guidelines,

visit http://www.eds.com/about/community.

For EDS, being a business ally goes beyond the work we do for clients, extending

to all the people we interact with – whether as an employer, neighbor, supplier,

business partner, mentor or other member of the community. Behind the scenes

are people who care.

A Culture of GivingEDS employees around the world have a reputation for making a difference. EDS makes contributions to

nonprofit organizations through corporate contributions of cash and in-kind donations, as well as from the

EDS Foundation. EDS has donated more than $79 million to nonprofits and neighborhood schools around

the world since it became an independent company in 1996.

“Giving back has always been at the heart of what EDS does as a company. We bring the same commitment and dedication to our communities that we provide to our clients around the world.”

– Ron Rittenmeyer, EDS chairman, president and CEO

communityengagement

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Programs and Volunteerism

Education OutreachSince 1989, EDS Education Outreach has enhanced

the lives of many thousands of students worldwide.

The goal of the program is to help our young genera-

tion become productive, contributing members of

society. We do this by combining voluntary, hands-on

employee involvement and state-of-the-art technol-

ogy to foster a joy of learning and improve the quality

of education.

EDS maintains global business/education partnerships

with more than 100 schools. Through this award-

winning program, along with the Junior Achievement

program, EDS employees lead mentoring, tutoring and

reading programs, among other activities.

For more information about the EDS Education Out-

reach Program, visit http://www.eds.com/about/

community/education/.

The JASON ProjectEDS has supported The JASON Project since 1989.

This educational initiative was founded by renowned

oceanographer Dr. Robert Ballard to share with

students the excitement of science. The program is

a nonprofit subsidiary of the National Geographic

Society. During the past 18 years, EDS provided

board leadership, technology solutions and techni-

cal consulting, and employee volunteer and graphic

design support.

In 2007, EDS provided

software develop-

ment, software project

management, systems

administration, and

labor and hosting support services, including facilities

(space and power), valued at over $597,000. Our work

encompassed designing and implementing an online

technology platform with interactive events, online

curricula and an amazing digital library accessible to

teachers, students and parents around the world.

Health and Human Services

50%

Cultural4%

Other1%

Civic7%

Education38%

2007 Global Corporate Contributions by Category

EDS - Domestic corporate contributions – cash

$2,432,607

EDS - Domestic corporate contributions – in-kind

$888,842

EDS - International corporate contributions

$841,597

EDS Foundation $800,963

Total $4,964,009

2007 Global Charitable Contributions

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EDS Global Volunteer Day (GVD)EDS employees practice good corporate citizenship in the

community on our annual Global Volunteer Day, an EDS

initiative since 1993. Global Volunteer Day is observed

each October, with EDS employees around the world col-

lectively donating thousands of hours to a range of local

projects as diverse as the individuals who participate.

Since 2000, EDS colleagues have worked in nearly 2,000

community projects, contributed more than 220,000

hours and touched the lives of more than 1 billion people

in more than 27 countries. In 2007 alone, more than

9,300 EDS volunteers donated 35,300 hours during 150

community projects in 27 countries.

Clients and alliance partners may also participate in lo-

cal projects. And EDS discusses the program with other

organizations interested in establishing a similar program

for their employees.

For more information on EDS Global Volunteer Day, visit

http://www.eds.com/about/community/volunteer/.

EDS Technology GrantsEDS recognizes that future innovation will depend on a new generation of engineers. That’s why we created the

EDS Technology Grant Program – to provide more than 100 technology grants per year to elementary and second-

ary schools around the world for the purchase of technology products and services that can help students develop

marketable skills for the future.

EDS encourages teachers and school librarians to propose innovative classroom projects, and to demonstrate how

the requested technology will improve their students’ ability to achieve curriculum objectives.

Since the program’s inception, EDS has awarded more than $2 million in grants to pay for technology products,

training and services. In 2007, EDS awarded more than 100 grants that will benefit thousands of students through

projects such as these:

Canada

Students at Robert H. Smith School in Winnipeg,

Manitoba, now can build a robot and operate it with

a program they designed on the computer. Introduc-

ing robotics in this science class has strengthened

competencies such as problem solving, collaboration

and research.

United Kingdom

The Castle School in Donnington received a grant of

£720 from EDS, which was matched by client Voda-

fone UK’s Foundation, providing the school with a total

of £1440. The grant was used to purchase switches

and supporting software for plasma screens, enabling

students to access interactive technology.

United States

The grant won by Perry Township Schools in Indianapo-

lis, Indiana, was used to purchase video equipment for

video self-modeling (VSM) intervention. This program

involves watching skills depicted in a video and then

imitating the behavior of the model. The VSM interven-

tion teaches children new skills, increases attention,

decreases anxiety and strengthens self-awareness.

VSM is used by children with autism, selective mutism,

learning disabilities and other challenges.

For more information about EDS Technology Grants, visit http://www.eds.com/about/community/grants/.

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In the UK, a group of EDSers and their client, Royal Bank of Scotland

Group, worked side by side for the Stepping Stones city farm project

to help with cleaning up, landscaping and preparing the area to plant

fruit trees. Participants from both teams are now working together on

monthly charity fundraising and community events.

In Egypt, EDSers and government officials worked together on the

Water Sabeel project to raise money for and install a drinking water

supply system near the EDS facility in Cairo. Another group of 26 EDS

employees provided dinner, entertainment and gifts for the residents

of the Al Safa Elderly home and later raised money to install a satellite

dish for senior citizens.

In Canada, the Pacifica Housing Advisory Association received help from

40 EDS volunteers to clean up the property of a former crack house in a

friendly residential neighborhood. The house was gutted and refurbished

to create five beautiful units for people with low or no income. The land

was cleared of weeds, overgrown shrubs and debris, and residents can

now relax in a scenic, crime-free yard.

Global Volunteer Day Team Excellence AwardThe Global Volunteer Day Team Award honors EDS employee teams for their outstanding community work during

the EDS Global Volunteer Day Program. Up to 15 teams are selected each year based on the number of participants,

volunteer hours donated and impact of their GVD work. EDS makes a US$1,000 donation in the winning teams’

name to the nonprofit organizations they supported through their EDS Global Volunteer Day project.

In 2007, we received 45 applications from 15 countries and are proud to showcase three of the 15 winning teams:

Sydney, Australia

Youth Off The Streets supports chronically homeless

and drug-addicted young Australians as they work

to turn their lives around. The EDS team brought

their technical expertise to update the program’s IT

equipment and contributed in numerous fundraising

activities, exceeding the amount targeted. A total of

114 PCs and 30 laptops, monitors, and printers were

stripped and refreshed to give this charity a consistent

IT environment in its schools and offices for the first

time in its existence.

Atlanta, United States

The local EDS team donated more than 300 hours of

labor to build homes for Habitat for Humanity. Thanks

to this effort, houses were completed on schedule and

budget, making it possible for the families to take pos-

session as planned.

Mumbai, India

The EDS MphasiS team partnered with nonprofit

CHILDLINE – India’s first 24-hour, free, emergency

phone service for children in need of aid and assis-

tance – to raise awareness of this service and con-

tribute to saving more children. The volunteer team

participated in numerous activities to educate the

community. These included an outreach program, fund-

raising, assisting with a puppet show to illustrate when

and how to use this service, and throwing a birthday

party for the homeless children.

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South AfricaUnderprivileged children in Africa can gain technical

skills toward a better future, thanks to EDS and

Digital Pipeline, a United Kingdom charity. EDS

donated 30,000 refurbished PCs to the nonprofit

group launched by Microsoft. Digital Pipeline

promotes the responsible reuse of discarded

personal computers by sending refurbished PCs to

disadvantaged schools in Africa. EDS’ donation is the

largest single donation to date.

EDS supported disadvantaged 12th grade students

in a math, English and business writing program at

two schools and also hosted an early Christmas and

graduation party for 397 AIDS orphans on World

AIDS Day.

Germany67 EDS colleagues joined the Komen Race in

Frankfurt for the second time – the race’s largest

team. In addition, donations were made to the

Komen Foundation in Germany.

121 EDS colleagues joined the Corporate Chase

Challenge charity run in Frankfurt.

280 colleagues participated in a bone marrow donor

typing campaign in support of people with leukemia.

United KingdomEmployees in EDS’ UK Delivery organization

researched how best to recycle the team’s unwanted

packaging. In the past, the packaging went to

waste landfill sites, but the boxes are now recycled

into packaging, stationery and other materials.

Additionally, more than 500 unused CDs from IT

vendors were sent for recycling in 2007.

Margaret Beckett, member of Parliament, and Della

Louch, EDS UK business management executive,

presented certificates to the winning participants in

the Derby Club of the Computer Club for Girls. This

club, run as a partnership among EDS, Derby County

Football Club and Derby City Council, helps local

school girls gain IT knowledge.

Community Activities Across the GlobeEDS employees actively support many other nonprofit agencies, such as March of Dimes, MS 150 Bike Ride, Boys

and Girls Clubs, Special Olympics, American Heart Association, American Cancer Association, American Red Cross

and the Juvenile Diabetes Research Foundation, to name a few. Our global involvement is extensive, but here are a

few examples of how EDS employees, friends and family share in the satisfaction that can be found in giving:

EDS Global Hunger DriveIn 2006, EDS began a partnership with the nonprofit organization Aidmatrix to provide employees with the online

tool to make donations to eligible food banks around the world. Using this system enables individual food banks to

increase their buying power tremendously. Their resources enable them to convert a US$1 donation into a US$15

purchase of needed food items. Since its launch, EDS employees made donations equivalent to US$405,000, ben-

efiting 27 countries.

For more information on the EDS Global Hunger Drive, visit http://vad.aidmatrix.org/eds/.

EDS United Way CampaignEDS employees have demonstrated their caring spir-

it by giving generously to the United Way for more

than 30 years. In 2007, EDS employees pledged

more than US$1.6 million to support the United Way

and its agencies worldwide, making a substantial dif-

ference to community operations sustained through

voluntary contributions.

On My Own Time Employee Art ShowEDS has sponsored the annual On My Own Time

Employee Art Show (OMOT) for more than 10 years.

OMOT is a global employee event that gives employ-

ees the opportunity to showcase their artistic ability.

In 2007, 10 countries were represented, with 137

artists submitting 213 entries.

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EDS Employee Volunteer Spirit AwardThe EDS Volunteer Spirit Award honors employees for outstanding community work contributed through the year.

Each year, EDS recognizes up to 10 employees for their tremendous contributions through EDS-sponsored volunteer

events or by donating their personal time to charitable organizations of their choice.

United StatesThe Sacramento Food Bank recognized EDS for being

the top corporate food collector in its annual Spirit of

Giving Food Drive held in November. EDS employees

contributed 3,219 pounds of food. This award was

presented for the first time in 2007, making EDS the

first name inscribed on the “traveling” trophy.

Junior Achievement of Dallas (Texas), Inc.

presented the 2007 Volunteer of the Year Award

to EDS employee Reuben Pratt. This award honors

and recognizes outstanding individuals for their

commitment and dedication to fulfilling the purpose

and mission of Junior Achievement.

The Northern Virginia Technology Council honored

Marilyn Crouther of EDS with its 2007 Community

Service Award. The award is presented to a financial

executive or technology organization that has

raised the bar for philanthropy or otherwise helped

improve the quality of life in the region. Crouther

has provided valuable support in building the Hoop

Dreams Scholarship Fund, a grassroots organization

that has sent more than 800 Washington, D.C., public

school students to college.

IndiaIn India, EDS partners with the Each One Teach One

organization in Mumbai and Jagruti Seva Sanstha

and Swadhar in Pune. Approximately 1,000 children

were reached in Mumbai and Pune. In addition,

through Junior Achievement, MphasiS has reached

out to 4,000 students across 40 institutions in

Chennai and Bangalore.

MphasiS, an EDS company, sponsored both a Car

Rally for the Blind in Bangalore, organized by the

National Association of the Blind, and a World

Disability Day event at India Gate in New Delhi,

organized by the National Centre for Promotion of

Employment for Disabled People.

Australia and New ZealandEDS is a donor member of the Great Barrier Reef

Research Foundation, which brings Australians together

to understand and resolve the complex biodiversity

challenges facing our coral reefs. The Great Barrier

Reef is the largest, most pristine, continuous coral reef

archipelago on earth. It supports myriad commercial and

recreational enterprise, returning more than $5 billion

each year to the national economy of Australia.

CanadaEDS Calgary hosted its 8th Annual Head Shave event

for the Canadian Cancer Society. In 2007, EDS raised

more than $57,000 for this cause, bringing the eight-

year total contribution to more than $371,000. Pledges

were received from employees, family, friends, other

corporations and EDS Canada, which donated $5,000 to

support the event.

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SponsorshipsCommunity affairs activities strengthen EDS by building relationships, supporting diversity and promot-

ing positive employee morale. The following programs promote charitable giving and volunteerism by

EDS and our employees.

Nobel Prize SeriesEDS was pleased to add a new global sponsor in 2007,

the Nobel Prize Series. With this three-year agree-

ment, EDS becomes a global sponsor of Nobel Media

and the global technology services partner for Nobel

Web – the media and technology arms, respectively.

EDS and Nobel will work together to develop content

and educational programs focused on increasing

understanding of the disciplines covered by the Nobel

Prize and highlighting the role technology plays in the

Awards and RecognitionEDS volunteers have accomplished impressive goals and made permanent, positive changes in many people’s lives.

Their efforts have been recognized with the following awards:

MS150 North Texas Region • – Voted Team EDS

the Best Veteran Team Captain because of the

exceptional team growth and fundraising in 2007

Juvenile Diabetes Research Foundation• –

Awarded the Platinum Achievement Award to the

EDS team in southeast Michigan for exemplary

fundraising efforts. This team also obtained first

place in the t-shirt design competition.

Komen Race for the Cure, North Texas • – Largest

Corporate Team and Largest Fund Raising awards

given to the Plano Team EDS

Komen Race for the Cure, Detroit, Michigan• –

Awarded the “Grow Getters” award for growing

their team by the largest percentage from 2006

Komen Race for the Cure, Germany• – Awarded

the Largest Team award

Komen Race for the Cure, Tulsa, Oklahoma• –

Awarded Largest Fund Raising award

North Texas Business for Culture and the Arts, •Obelisk Award – Presented to EDS in Dallas,

Texas, for its partnership with the Museum of

Nature and Science. The Obelisk Awards honor

businesses for their funding, professional

expertise and innovative initiatives that advance

the arts.

American Red Cross Dallas Area Chapter •Awards – Presented to EDS for its support and

participation in the Ready When The Time Comes

Volunteer Program

2007 Telly Award • – Awarded in the Corporate

Image Category for the EDS Corporate Spirit –

2006 Race for the Cure “United Around the

Globe” video

advancement of physics, chemis-

try, medicine, literature, peace and

economics. Nobel will also benefit

from EDS’ technology expertise

and, in particular, enhancement of what is already an

award-winning Web site, http://www.nobelprize.org.

For more information about EDS’ sponsorship of the

Nobel Prize Series, visit http://www.eds.com/about/

sponsorships/.

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Susan G. Komen Breast Cancer FoundationEDS generously supports the Susan G. Komen Cancer

Foundation and the Komen Race for the Cure®. To learn

more about this foundation, visit http://www.komen.org/.

EDS is pleased to be the sole

presenting sponsor for the Ko-

men North Texas Race for the

Cure®. From increasing money

raised to race participation at

the Komen North Texas Race

for the Cure®, EDS surpassed a number of key goals

in 2007:

Raised more than $1 million, a 24 percent increase •over 2006

Increased EDS’ participation from 1,013 employees •in 2006 to 1,132 employees in 2007

EDS’ participation in the project is 100 percent voluntary.

A core team of EDS volunteers contributed 5,400 hours

supporting the marketing, communication and operational

aspects of the Komen North Texas Race for the Cure®.

EDS does not manage the events but supports the different

local affiliates and their commitments. In 2007, we backed

this important event through contributions, fund-raising

events, creative support, sponsorships, volunteer hours,

marketing, walking teams, and technical and audio/visual

support in 17 cities, including Washington, D.C., Frankfurt,

Germany, and cities in North Texas.

For more information about EDS’ involvement in the Susan

G. Komen Race for the Cure®, visit

http://www.eds.com/about/sponsorships/.

EDS Byron Nelson ChampionshipEDS is proud to contribute to the success of the

EDS Byron Nelson Championship (EDS BNC) and its

leadership as the Professional Golfers’ Association

(PGA) TOUR’s largest charitable contributor. The sole

beneficiary of proceeds from the EDS BNC is the

Salesmanship Club Youth and Family Centers (SCYFC),

a nonprofit organization dedicated to enriching the

quality of life for children and their families through

education and mental health services.

In addition to EDS’

participation as the

title sponsor, EDS

also hosted online

auctions of the EDS

BNC custom chopper,

built by the world-renowned Orange County Chop-

pers (OCC), and a one-of-a-kind OCC-themed pinball

machine. In total, the auctions raised an additional

$117,000 for SCYFC. EDS and OCC also created a sec-

ond chopper that was given to the 2007 Tournament

winner, Scott Verplank.

The 2007 EDS BNC raised $6.4 million for a combined

total of more than $100 million raised for charity since

1973. This equals more than any other PGA TOUR event

and represents almost 10 percent of the total chari-

table contributions generated by all PGA Tour events.

In addition, more than 250 EDS employees travel to

the Championship each year from all over the world to

volunteer their time in support of the tournament.

For more information on the EDS Byron Nelson

Championship, visit http://www.eds.com/about/

sponsorships/byronnelson/.

Participants rally at the 2007 Komen North Texas Race

for the Cure®. EDS provides support in many ways in

several countries.

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EDS Foundation 2007 Grant RecipientsFor more information on the EDS Foundation, includ-

ing a complete list and description of 2007 grant

recipients, how their grants are being used and the

types of support EDS provides, visit the EDS Founda-

tion Web site and the EDS Foundation 2007 Annual

Report at http://www.eds.com/about/community/

foundation/.

EDS Foundation grants approved annually

U.S

. Do

llars

in T

ho

usa

nd

s

$0

$2

$4

$6

$8

$10

$399,872

$506,494

$600,643 $620,736$698,528

$878,091

2002 2003 2004 2005 2006 2007

EDS Foundation Grants – A Historical Perspective

AwardsIn 2007, EDS was recognized for a decade of support of Hoop Dreams and received the inaugural Corporate

Champion Award from the Hoop Dreams Scholarship Fund (HDSF) at the organization’s 10th anniversary

celebration in Washington, D.C.

EDS FoundationAs technology advances and proliferates, there remains a gap between the rich and the poor, minorities and

majority communities, and the connected and the unconnected. This gap encompasses a lack of access to hard-

ware, software, connectivity and competent training in the productive application of technology.

EDS saw an opportunity to provide its expertise and support in this area and created the EDS Foundation to

support our philanthropic efforts in the communities where our employees volunteer and work around the

world – specifically in the area of information technology. The Foundation’s mission is to ensure IT supports and

encourages cultural and civic change, enriching the education of current and future generations, while enhanc-

ing the communities we serve.

During 2007, the EDS Foundation Board approved funding in the amount of $878,091 to 27 nonprofit organiza-

tions in 11 U.S. states and Canada. Since the EDS Foundation’s inception in 2000, EDS has approved a total of

$4,894,693 in foundation grants to 95 nonprofit organizations in 25 U.S. states, Brazil and Canada.

The EDS Foundation Grants by Category

2007$878,091 in Grants to 27 Nonprofit Organizations

Health and Human Services

22%

Technology Solutions32%

General Education46%

Since Inception in 2000 $4,894,693 in Grants to 95 Nonprofit Organizations

Health and Human Services

12%

Technology Solutions37%

Arts and Culture6%

General Education45%

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Bert Quinn, Orion/Oxford Advisory Council member;

Mark Schrauben, EDS Manufacturing Group; Tim Dou-

gan, Club director with youth from Orion/Oxford Boys

& Girls Clubs

EDS Foundation Grant Funds Technology Center for Boys & Girls Clubs of Southeastern Michigan

The Boys & Girls Clubs of Southeastern Michi-

gan used an EDS Foundation grant of $39,017 to

help relocate and set up the new Orion/Oxford

Michigan Club’s Computer Technology Center. The

center was featured at the Club’s annual Family

Night in December 2007.

The technology center is professionally staffed –

outfitted with personal computers, printers and

other equipment – to teach boys and girls lessons

about Internet safety, sharpen their computer

skills and help with homework. The infrastructure

of the Club was strengthened by EDS’ investment

in a membership tracking system and other busi-

ness systems.

“This is all part of how we help our young mem-

bers become caring, responsible and self-reliant

adults,” said local EDS executive Mark Schrauben,

who serves as a board member of the Boys & Girls

Clubs of Southeastern Michigan.

EDS Foundation 2007 Grant Highlights

The EDS Foundation donated $50,000 for a Youth

Case Management Computer System. From left: Mike

Best, Sharon Kubich and Joe Coyle, all of EDS; and

Gregg Dowty and Brian Leidy, with the Children’s

Home of Easton

EDS Donates to Home for Disadvantaged Children

The EDS Foundation donated $50,000 to the

Children’s Home of Easton for a youth case man-

agement computer system. The system tracks

children’s progress from referral, admission,

treatment and discharge and enables casework-

ers to follow their progress.

“The EDS Foundation grant was the pinnacle of

our efforts this year,” said Joe Coyle, a client

delivery executive for the PPL account in Allen-

town, Pa. The day we presented the home with

the check was truly the highlight and proudest

moment of my 13-year career with EDS.”

Since 1885, the Children’s Home has served as

a home to thousands of disadvantaged children,

providing supervision, care, counseling and love

normally provided by parents or family. The

private, nonprofit facility’s therapeutic residen-

tial and community-based programs are geared

toward young people from 9 years old to college

age.

The new case management system will help

the Children’s Home serve clients more effec-

tively. New hardware and software will track and

consolidate demographic data, funding, youth

events, clinical documentation and case man-

agement. The improved technology will help the

home evaluate and monitor programs to ensure

each youth’s treatment goals are met. Eventu-

ally, the system will provide data for electronic

billing and claims processing.

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Appendix 1: Stakeholder EngagementEDS continues to be influenced by proactive interactions with our stakeholders and uses their input to help

guide our corporate responsibility efforts. This appendix contains a list of our main stakeholder groups and

describes how we engage with each. Additional engagement perspectives are included throughout this

report. This list is representative and does not include every stakeholder with which EDS engages.

How We Engage Benefits to EDSEngagement Examples

From 2007

Employees �

Ongoing leader-led communications via e-mail, meetings, town halls and executive broadcastsinfoCentre intranetOpen Door PolicyEmployee network groupsSurveysVolunteerismmyWorkLife portalEDS Onboarding ProcessPerformance appraisalsEDS Code of Business ConductEDS Political Action Committee Web site

Increased levels of employee education and engagementGreater understanding of corporate priorities and strategiesEnhanced employee performance

Conducted 327 Global Broadcast Network broadcasts, (also available via streaming video), delivering 96,000 program hoursBegan translating Abbreviations weekly e-newsletter into five key languagesParticipated in Global Volunteer Day, EDS Byron Nelson Golf Championship, United Way , American Red Cross and Global Hunger Drive, and other eventsCompleted almost 3 million hours of trainingImplemented myPerformance Web site to engage employees in performance management activitiesMade voluntary contributions to EDS PAC ($233,950 to bipartisan campaigns of U.S. federal and state candidates)

Clients �

Service Excellence DashboardConferences and eventseds.comInnovation Summits for clients, accountsVoice of the Client (VOC) ProgramInquiries and responses regarding Request for Proposals (RFPs)Supplier diversity consultationsFacility tours

Enhanced competitive advantage and differentiation in the marketplaceGreater client satisfaction through understanding client needs, EDS strengths and areas for improvement

Made detailed operational metrics visible through the dashboard to monitor our delivery and performance for each clientConducted client-initiated surveys for clientsConducted 160 face-to-face interviews with key clientsExecuted action plans in response to client feedbackEDS Fellows spent more than 5,000 hours on client innovationProvided EDS Experience tours and walk-throughs of other EDS facilities

Alliance Partners �

Client sales engagementsSolution design, development, implementationCertificationsCommunity engagementEDS Agility Alliance Development CenterTop Gun technical training programsynnovation magazine

Market-leading capabilities that yield technology-based services that deliver resultsGreater knowledge of alliance partners’ technologies and products

EDS Agility Alliance partners spent nearly $20B in 2007 on research and development of innovative new products and servicesCreated the JASON digital library with Agility Alliance partners Cisco, EMC, Microsoft and Sun providing equipment, software and a search engineGained support of various Alliance partners for the EDS Byron Nelson Championship

Communities �

EDS Foundation (philanthropy)Sponsorships and volunteerismBoard and committee responsibilities

Stronger community relationships globallyGreater understanding of local community needs

Awarded 108 grants of $1,500 each globallyEmployees provided approximately 135,000 hours of community serviceBecame a global sponsor of the Nobel Prize SeriesRaised $6.4M for charity through the 2007 EDS Byron Nelson Championship

Investors and Investment Influencers �

Annual shareholder meetingStatutory and other disclosuresRegular briefings and meetings

Improved understanding of our business principles, economic performance and corporate responsibility actionsImproved ratings and increased investmentDesignation as a socially responsible investment

Hosted live quarterly earnings WebcastsUpdated EDS profile at KLD Research & AnalyticsWas included in the Dow Jones Sustainability World Index and North America IndexResponded to the Carbon Disclosure Project

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How We Engage Benefits to EDSEngagement Examples

From 2007

Governmental Organizations, Including Legislators and Regulators �

Regular meetings and briefingsMembership in trade associations and business organizationsParticipation in governmental organizations and events

Input and influence on public policy issuesIssue resolutionMitigate global regulatory risks

Sponsored the Guardian Public Services Summit in the UKHold board and committee leadership positions in industry associations such as the Information Technology Association of America, Professional Services Council, and National Association of Manufacturers, among othersAdvocated policy positions on tax, health, public procurement, privacy and technology issues

Non-Governmental Organizations �

Meetings and other direct engagementBoard and committee responsibilities

Ability to take action on topics of interest through participation in coalitions Enhanced reputation through contribution of EDS thought leadership

Founding board member of Climate Savers Computing InitiativePartnership with The Carbon Trust (UK) and The Green Grid, among others

Industry Analysts/Media �

Meetings, interviews and briefingsDirect engagement on topics of interestAnalyst and technology conferencesInterviewsMedia toursPress conferences

Two-way understanding of the marketplace, EDS initiatives and activitiesEnhanced reputation as a service provider and as an industry thought leader

Held three EDS Industry Analyst SummitsSponsored EDS Industry Analyst events (Gartner U.S and EMEA Outsourcing Summits, and Forrester IT Forum)Sponsored events held by various analyst firmsAs panelists at various conferences, discussed EDS’ environmental sustainability program

Suppliers �

Supplier Excellence DashboardSupplier Diversity ProgramSupplier Quality, Environmental and Social Accountability Assessment ProgramMentoring, roundtable discussions, meetings and trainingVendor Code of Conduct

Enhanced supply chain performanceMitigated riskEnhanced our brand identity

Measured supplier performance, took preventative action and optimized procurement strategies via Supplier Excellence DashboardMentored MWSBEs to sharpen their business skills; enhance delivery, quality and service; and compete more effectivelySponsored supplier diversity events and participated in trade showsConducted training in export control, combating bribery, workplace harassment and security awareness for contract laborers engaged by EDS for 90-plus days

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Appendix 2: Goals and TargetsCorporate responsibility at EDS covers a wide range of issues. The following goals reflect our commitment

to quality and to continually improving sustainable business practices and performance in priority areas

where we can have a positive impact. We will evaluate our performance and report our progress toward

these goals next year.

Goal/Objective 2008 Target

Client Focus – � Service Excellence

Clients will increasingly view EDS as an innovative strategic partner.

Improve the percentage of clients who recognize EDS’ innovation efforts.

Increase the number of clients who rate EDS as excellent in key performance categories such as overall performance, referenceability, renewability, value, competitive advantage and overall quality.

Improve the percentage of clients who rate EDS as excellent through the Voice of the Client Program.

Client Focus – � Innovation and Thought Leadership

Create and foster an EDS chief technology officer (CTO) training program.

Continue to develop and deploy a CTO training program to foster talent within EDS.

Assist EDS accounts in raising their innovation scores on the Service Excellence Dashboard.

Help targeted accounts raise innovation scores by at least one level.

Client Focus – � Global Alliances

Work with EDS Agility Alliance partners to optimize the performance and minimize the environmental impact of technology for EDS, our partners and our clients.

Become actively involved with our alliance partners in the development of a Green Data Center.Together with our partners, increase environmental awareness by participating in the Green IT Summit in Calgary.

Demonstrate multiparty corporate citizenship.

Contribute volunteers from EDS and partners to Habitat for the Humanity project work sites as part of EDS’ Global Volunteer Day.Attain 100 percent alliance participation in the 2008 EDS United Way Golf Classic.Attain 100 percent alliance participation to sponsor the Susan G. Komen North Texas Race for the Cure®.

Client Focus – � Industry Analyst Relations

Execute a broad-based industry analyst relations (IAR) program so IT industry analysts will consistently recommend EDS as a preferred services provider to their clients.

Plan and execute EDS’ 2008 industry analyst Global Summit – February

Meet Tier One industry analyst firm objectives.

GartnerMaintain overall positive vendor rating with incremental improvements •in category rankings to position EDS for an overall upgrade in 2009.Maintain existing Magic Quadrant leadership.•Evaluate re-entering consulting-oriented Magic Quadrants (ERP, CRM, •business intelligence, supply chain).Develop deeper vertical industry relationships with Gartner analysts.•

ForresterMaintain existing WAVE leadership designations.•Evaluate re-entering consulting-oriented WAVEs.•Develop deeper vertical industry relationships with analysts.•

IDCDevelop deeper vertical industry relationships with analysts (including •Insight practices).

OvumMaintain existing Navigator leadership designations.•Develop deeper vertical industry relationships with Ovum analysts.•

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Goal/Objective 2008 Target

Extend EDS’ positioning as a premier IAR program among the Top Tier IT services firms so the analyst community consistently maintains a positive perception of EDS, our products and services, our capabilities, and our marketplace progress.

Maintain and extend EDS’ leadership in positive Tier One industry analyst report references.Engage regularly with EDS’ peer IAR programs in the IT industry.Participate in Inner Circle (informal IAR network among leading IT firms)Participate in KCG Programs (U.S. IT IAR programs)

Environmental Sustainability �

Enable clients to be more eco-friendly.

Provide thought leadership in market and industry events.Deliver environmental sustainability products and services to meet client demands.Establish standards for EDS suppliers.Create competitive and sustainable environmental practices with an industry focus.

Complete a design for the most environmentally sustainable data center on the planet.

Conduct a design ”charrette” or workshop.Incorporate design ideas into new data centers.

Define and manage our environmental footprint.

Complete a global environmental baseline study.

Drive improvement in energy efficiency in EDS-owned and -operated facilities.

Study high-efficiency HVAC strategies and solutions to reduce energy usage and optimize heating and cooling.Improve lighting solutions.

Raise environmental awareness and set behavioral standards for employees.

Deploy environmental sustainability training.

Global Supply Chain Management �

Improve results of EDS Supplier Diversity Program.

Increase the amount of business EDS does with minority-owned and women-owned businesses in the United States.Reduce the number of commercial contract labor suppliers.

Expand EDS’ supplier performance management program.

Identify strategies for expanding the program to other regions.

Manage and communicate supplier performance.

Expand the number of core suppliers monitored using the EDS Supplier Excellence Dashboard.

Expand EDS supplier mentoring programs and partnerships.

Expand the total number of volunteer participants in EDS supplier mentoring programs and partnerships over the next two years.

Business Practices – � Ethics and Compliance

Strengthen ethics and compliance program in non-U.S. locations.

Provide additional translated communications and training to non-U.S. employees with a focus on relevant topics and areas of concern.

Provide workplace harassment training to employees in countries in which EDS does business where Spanish and Portuguese are the primary language.

Roll out one-hour course on workplace harassment to leaders and employees.

Increase number of ethics videos by EDS leaders.

Distribute at least six ethics videos by EDS leaders – three or more to be delivered by non-U.S. executives.

Conduct ethics and compliance program effectiveness assessment.

Conduct global ethics survey and benchmark results against surveys conducted by similar global corporations.Facilitate focus groups to capture employee feedback.Implement program improvements in response to data received.

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Goal/Objective 2008 Target

Refresh ethics and compliance training material.

Update the following training:Practical Ethics course for New Hire Acclimation Process: translated into •five languages – covering ethical behavior and compliance topics in a manner appropriate for global distributionWorkplace Harassment course: translated into five languages – •containing material appropriate for global distributionInternational Bribery and Corruption course: translated into six •languages - containing material appropriate for targeted, global distributionExport Compliance: translated into five languages – containing material •appropriate for targeted, global distribution

Improve data security incident prevention and response processes.

Support implementation of additional measures to prevent data security incidents and continue to improve and fine-tune response process.

Business Practices – � Government Affairs and Public Policy

Expand multilateral and bilateral progress toward an open global trading system for IT services.

Work toward increasing EDS visibility in promoting the Doha Round, restoring trade negotiation authority for the U.S. president, and passage of bilateral free trade agreements.

Maintain business flexibility to deliver services on a global basis.

Uphold EDS prominence in resisting protectionist legislation and regulation to restrict movement of work and promoting movement of people through immigration reform.

Business Practices – � Marketing and the EDS Brand

Operate in full compliance with all ICC Code of Advertising Practices.

Achieve zero noncompliance incidents.

Improve consistency of all communications.

Conduct full brand and advertising training with each team and region within Marketing Events and Client Experience Management.

Implement a global advertising campaign to positively impact consideration and preference of EDS.

Implement campaign in Q2 through Q4. Evaluate ad tracking in Q4 to confirm positive impact.

Workforce Engagement – � Employee Benefits

Provide a comprehensive and fully competitive total benefits package that enables leaders to attract, motivate and retain talent, while enhancing shareholder value.

Focus efforts in 2008 on simplifying our healthcare offering; commit to employees that the solution will be in place for three years (2008-2010), establish a top-notch wellness incentive program, emphasize consumerism and manage costs.

Community Engagement – � EDS Byron Nelson Championship

Create and deliver exceptional client and corporate event programs.

Continue to provide an exceptional venue for clients, hosts, players and volunteers.

Develop relationship-building programs that support EDS’ total contract value goals.

Survey client and EDS event participants to determine specific impact to the relationship.

Appendix 2: Goals and Targets (continued)

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Appendix 3: OpportunitiesEDS has made progress in the area of corporate responsibility, but we also recognize the need to do more.

The opportunities listed below reflect areas where we intend to increase our efforts and report our progress

in the future.

Opportunity

Client Focus – � Service Excellence

Request account teams to obtain 25 percent client feedback each quarter to balance workload and help ensure goals and objectives are met.

Expand the existing Voice of the Client feedback mechanism to understand more about our clients’ experiences using specific EDS services. This more granular insight will help us drive continuous improvement to ensure we are delivering client value.

Client Focus – � Global Alliances

Using leading-edge technology and innovative thinking from EDS and our Agility Alliance partners, we will collaborate to develop an EDS Environmental Index to benchmark our clients’ environmental footprint. Then, we will build a road map to help clients reduce their waste and carbon emissions while simultaneously reducing costs and increasing efficiency.

Client Focus – � Industry Analyst Relations

Demonstrate to analysts how the following provide competitive differentiation and advantage for EDS in the market:

Global Services Network•Consistent service delivery and Best Shore• ® capabilitiesAgile Enterprise Platform•EDS Agility Alliance•Modernization expertise•Industry and technical expertise•

Signal EDS’ direction and progress in establishing renewed consulting capabilities in our ITO and applications business.

Environmental Sustainability �

Further align our business model to address climate change and other environmental issues for ourselves and our clients.

Global Supply Chain Management �

Continue to centralize procurement functions into a single organization to control costs and work with suppliers to maximize quality and savings.Increase the level of awareness of how supply chain transformation not only strengthens a company’s financial performance but also provides the means to advance workforce diversity, human rights and environmental sustainability.

Business Practices – � Ethics and Compliance

Deliver globally relevant ethics and compliance training to employees in a language they read and understand to increase global completion percentages on all corporate-required training.

Educate non-U.S. employees – working for a U.S. based, multi-national company – on the company’s need to comply with certain U.S. laws even for some activities being conducted outside the U.S.

Effectively establish EDS’ corporate culture and adherence to the standards in EDS’ Code of Conduct and policies among employees in all countries where EDS does business.

Understand how certain U.S. terms impact the acceptance of programs and initiatives outside the U.S. (for example, Code of Conduct has a negative connotation in some countries).

Develop an alternative delivery and tracking method for ethics and compliance training in parallel to that offered through the EDS intranet.

Better educate employees on U.S. and other countries’ export and privacy laws that are increasingly becoming a factor as the company’s business grows internationally and as the transfer of work and data continues to escalate globally.

Integrate employees acquired through merger and acquisition activities into the EDS ethics and compliance culture and program.

Ensure sufficient ethics and compliance controls are in place for the contract laborers used in EDS business operations.

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Opportunity

Business Practices – � Marketing and the EDS Brand

Implement continuous communications to make employees aware of how to best reflect the EDS brand in their actions and communications.

Implement a plan to audit key communications to determine level of brand consistency and opportunities for improvement.

Workforce Engagement – � Performance Management

Performance culture: Further integrate performance as a part of the EDS culture and as part of a leader’s and employee’s daily life.

Reporting and analysis: Increase ability to provide insightful, value-adding reporting to the business.

Tool functionality: Upgrade the tools used to support the Performance Management Program to provide increased functionality through leading-edge technology.

Workforce Engagement – � Employee Benefits

Simplify healthcare programs (network, program design, communication, etc.), coupled with placing the employee/family at the center of the decision process and focusing on “consumerism.”

Community Engagement – � Community Affairs

Continually improve the alignment of Community Affairs initiatives to EDS business goals.

Community Engagement – � Volunteerism

Strengthen our employee volunteer program globally.Expand executive support/participation in corporate programs.Encourage employees continued use of the volunteer tracking system.Leverage volunteerism in support of EDS business goals.Further strengthen client relationships through volunteerism partnerships.

Community Engagement – � Community Involvement

Identify employees actively representing EDS in the community (for example, board members, trustees, committee members, etc).Identify opportunities for interested EDS employees to represent EDS on boards, committees and other community positions.

Community Engagement – � EDS Byron Nelson Championship

Continue to raise the bar on previous year’s event.

Appendix 3: Opportunities (continued)

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Appendix 4: Principles EndorsedEDS has a tradition of commitment to and engagement in external initiatives. The following are examples of

externally developed economic, environmental and social charters, principles, or other initiatives to which

EDS subscribes or endorses. This list is representative and does not include every external principle to

which EDS subscribes or endorses.

External Charter, Principle or Initiative

Stakeholders Involved in Development and Governance

EDS Participation Voluntary or Obligatory?

EDS Adoption and Application Information

Environmental Sustainability �

The Carbon Disclosure Project

Institutional Investors representing US$41 trillion in funds under management in 2007

Voluntary EDS’ response to CDP5 provided investment-relevant information to signatory investors, including the 70 with EDS holdings.

Business Practices – � Security, Privacy and Data Protection

Protection of critical infrastructure, especially as part of the U.S. Department of Homeland Security’s Critical Infrastructure Protection Program (CIPP)

Various global governments and private sector groups

Voluntary We participate in various crisis management exercises for critical U.S. and Europe infrastructure protection in times of terrorism or natural disaster.

Workforce Engagement – � Global Learning and Development

Outreach Program - Queen’s University

EDS Canada Diversity Team

Voluntary Encourage females to enter into the IT field.

Aboriginal Awareness Training

EDS Canada Diversity Team, Regional Leadership Team

Voluntary Build awareness to address in government proposals and broaden the diversity of candidate pools.

Junior Achievement EDS Canada, local school boards

Voluntary Participate in delivering community education curriculum to the local school boards in Ontario (such as Stay in School program).

Human Resources Development Fund (HRDF). Initiated by the Malaysia Ministry of Human Resources in 1992, but run as a corporation since 2001.

External: HRDF is governed and run by “Pembangunan Sumber Manusia Berhad.”

Internal: All EDS business units contribute 1% of gross salary of Malaysian employees to HRDF every month.

Obligatory under the “Human Resources Development Act 1992” and the Pembangunan Sumber Manusia Act 2001

EDS Malaysia uses the HRDF for classroom technical training not offered through GL&D and also for soft skills training, such as team-building activity.

Shanghai City Education Fund

People’s Republic of China Ministry of Finance

Shanghai City Government

Voluntary Use available funding for education to support EDS China employee training.

Wuhan City Government Education Fund

People’s Republic of China Ministry of Finance

Wuhan City Government

Voluntary Use available funding for education to support technical and language training for EDS China employees.

UK Skills Pledge UK Government’s Learning and Skills Council (LSC)

Voluntary EDS commits to continually “raising the bar” in helping employees gain and improve basic skills (numeracy and literacy).

e-Skills UK(UK Government Sector Skills Council for ICT)

e-skills UK Voluntary Support to initiatives such as these:Computer Club 4 Girls•Undergraduate degree of IT for •management and businessIT diploma for schools•IT Postgraduate Development •Program

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Appendix 5: MembershipsEDS has a tradition of commitment to and engagement in external initiatives. The following are examples of

memberships in associations or national/international advocacy organizations in which EDS has positions

in governance bodies, participates in projects or committees, provides substantive funding beyond routine

membership dues or views membership as strategic. This list is representative and does not include every

industry association in which EDS participates.

Strategic Association or Advocacy Organization Name

EDS Involvement in Governance, Work Streams and Funding

Client Focus – � Innovation and Thought Leadership

Data Center Markup Language (DCML)•Architecture Driven Modernization (ADM)•Business Process Definition Metamodel •(BPDM)Business Process Runtime Interfaces (BPRI)•Object Management Group (OMG)•OSM Organization Metamodel•Open Source•Information Technology Association of •America (ITAA)United Nations Centre for Trade Facilitation •and Electronic Business (UN/CEFACT)Enterprise Grid Alliance•Global Grid Forum•World Futurist Society•The Open Group•

EDS Fellows and Distinguished SEs on the board of directors and otherwise involved in these standards bodies and associations on behalf of EDS

Client Focus – � Global Alliances

Association of Strategic Partnership Professionals (ASAP)

Founded in 1999, ASAP is the leading global professional association dedicated to alliance formation and practice. EDS is a founding Texas chapter sponsor.

Client Focus – � Industry Analyst Relations (IAR)

Analyst Relations Inner Circle Informal association of IAR programs from leading IT companies such as Cisco, HP, IBM, Intel, Microsoft, Oracle, SAP and others. EDS is a participating member in sharing analyst relations best practices.

Environmental Sustainability �

Climate Savers Computing Initiative http://www.climatesaverscomputing.org/

Founding board member of Climate Savers Computing Initiative, a consortium of industry leaders shaping the direction and driving the adoption of energy-efficient computing platforms

The Green Grid http://www.thegreengrid.org/home

Member of The Green Grid, a global consortium dedicated to developing and promoting energy efficiency for data centers and information service delivery

The Carbon Trust http://www.carbontrust.co.uk/default.ct

Working with The Carbon Trust – a UK Government funded body that assists businesses in moving to a low-carbon economy – to identify practical measures to reduce carbon emissions for EDS and our clients

Business Roundtable’s Climate RESOLVE (Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts)

Participant in the Business Roundtable’s Climate RESOLVE initiative that promotes voluntary action to manage greenhouse gas emissions and improve energy efficiency in commercial buildings, new products, technology and services, among other goals

National Business Travel Association (NBTA) http://www.nbta.org/

Member of the Corporate Social Responsibility committee

Canadian Chamber of Commerce Member of the Environmental committee

UK Intellect Environment & Energy Special Interest Group

Participates on the board of directors and in the Best Practices working group

Supply Chain Management �

Corporate Executive Board Active member of the Procurement Strategy Council

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Strategic Association or Advocacy Organization Name

EDS Involvement in Governance, Work Streams and Funding

Business Practices – � Government Affairs and Public Policy

UK organizations:Confederation of British Industry•Intellect•British American Business, Industry and •Parliament TrustWhitehall and Industry Group•The European Information Society Group•The Parliamentary IT Committee•

Has representatives on a number of their policy-making and communications forums

European Union organizations:American Chamber of Commerce EU•Lisbon Agenda•Transatlantic Policy Network•Transatlantic Business Dialogue•European American Business Council•

Engages in a number of ways and provides strategic overview and insights

North American organizations:Business Roundtable•U.S. Chamber of Commerce•Center for American Progress•Center for Strategic and International Studies•Council on Foreign Relations•Democratic Governors Assoc.•Republican Governors Assoc.•National Foreign Trade Council•Congressional Black Caucus•National Association of Manufacturers•Information Technology Association of •AmericaAmerican Legislative Exchange Council•Coalition of Service Industries•Canadian American Business Council•

Engages in a number of ways and provides strategic overview and insights

Asia/Pacific organizations:U.S. - New Zealand Business Council•U.S. - Japan Business Council•U.S. - India Business Council•U.S. - China Business Council•American Australian Leadership Dialogue•

Engages in a number of ways and provides strategic overview and insights

Business Practices – � Security, Privacy and Data Protection

IT Information Security Advisory Council (IT-ISAC) Supports various work streams to ensure security and sustainability of the IT portion of national infrastructure in times of crisis

International Association of Privacy Professionals (IAPP)

Supports funding and work stream to advance understanding and capabilities of global security and privacy regulations

Business Practices – � Marketing and the EDS Brand

IT Services Marketing Association (ITSMA) Corporate membership providing members access to best-practice information and live seminars. EDS team member serves on Executive Council.

Association of National Advertisers (ANA) Corporate membership providing members access to best-practice information and live seminars

Workforce Engagement – � Global Learning & Development

Human Capital Institute Corporate member, advisory board

ASTD Benchmarking Forum Advisory activities

Corporate Executive Board Roundtable (training) Corporate member

Project Management Institute Global Registered Education Provider of project/program management courses

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Strategic Association or Advocacy Organization Name

EDS Involvement in Governance, Work Streams and Funding

Workforce Engagement – � Performance Management

Employee organizations in certain countries In certain countries, EDS employees are represented by organizations responsible for approving the performance management process for their respective countries. EDS works with these organizations to ensure applicability, based on country-specific laws and regulations. If all material is approved, the country is included in the global program.

Workforce Engagement – � Employee Benefits

National Business Group On Health – Council for Employee Health & Productivity

Committee Member

International Society of Certified Employee Benefits Specialists (DFW Chapter)

Board of Directors

Appendix 5: Memberships (continued)

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Appendix 6: Environmental Performance Indicators[4.11] Explanation of whether and how the precautionary approach or principle is addressed by the organization. Article 15 of the Rio Principles introduced the precautionary approach. A response to 4.11 could address the organization’s approach to risk management in operational planning or the development and introduction of new products.

Principle 15 of the Rio Declaration on the Environment and Development states:

“In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”

As a leading global information technology services company, EDS takes its environmental responsibilities seriously. We developed an Environmental Framework to ensure our people, service offerings and innovative thinking are used to implement business solutions for ourselves and our clients that address climate change and other environmental issues. EDS is not a manufacturer of technology products or components; however, EDS considers material selected and takes precautionary steps to minimize the environmental impact of constructing, modifying and operating its facilities.

EDS has assembled a portfolio of “eco-friendly IT solutions” that enable our clients to reduce their ecological footprint. We also collaborate with suppliers to deploy eco-friendly products and services within our own operations. We are actively involved in a number of environmental industry groups, including Climate Savers Computing Initiative, The Green Grid, The Carbon Trust and the Carbon Disclosure Project. Through EDS’ involvement in these industry groups, we continue to seek opportunities to improve overall computing platform and data center power efficiencies internally and across the industry. In addition, we believe that operating efficiencies achieved through our best-practice standards, processes and optimized facility designs will streamline costs and reduce the environmental impact of our operations.

Energy

[EN1] Materials used by weight or volume.As an IT services company, EDS is not a direct manufacturer of products and does not purchase any significant quantity of raw materials (for example, natural resources) for production processes. EDS does, however, consume business supplies, computer hardware (such as desktop computers, servers and mainframes) and paper.

EDS’ investment in supply chain transformation increases our ability to reduce consumption and conserve the global resource base. The ability to more precisely track material consumption across products and product categories facilitates EDS’ ability to monitor material efficiency and the cost of material flows.

In addition, eco-friendly computing is at the heart of EDS’ environmental sustainability initiatives. We are working with industry groups, alliance partners and other hardware equipment manufacturers to purchase and deploy energy-efficient desktops, laptops and servers, and manage their operation in ways that benefit the environment.

[EN2] Percentage of materials used that are recycled input materials.Where possible and consistent with business requirements, EDS purchases products manufactured in whole or in part from recycled input materials, such as copier paper and certain administrative supplies.

[EN3] Direct energy consumption by primary energy source.Direct (Scope 1) energy consumption in 2007 associated with EDS operations consists of the following sources. Calculations are based on data from EDS’ global operations, where available.

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Table: 2007 Direct (Scope 1) Energy Consumption

Energy Source Gigajoules (GJ)CO

2 Emissions

in Metric Tons

Natural gas 183,222 9,430

Petroleum-derived fuels 775,203 54,118

Total direct consumption of non-renewable primary energy 958,425 63,548

Calculation sources: GHG Protocol “CO2 emissions from transport or mobile sources” and “CO

2 emissions from fuel

use in facilities” calculation tools at http://www.ghgprotocol.org/calculation-tools/service-sector.

[EN4] Indirect energy consumption by primary source.EDS major site locations in the United States consumed a total of 538,684 Megawatt hours (MWh) of electricity in 2007. EDS operations in the United Kingdom (UK) consumed 106,962 MWh in 2007.

EDS has data for most major sites globally. Specifically, additional data for operations in Australia, Argentina, Brazil, Canada, France, Germany, Ireland, Italy, Mexico, New Zealand and Switzerland was included. Operations in these sites outside of the U.S. and UK consumed a total of 232,726 MWh of electricity in 2007.

Therefore, according to the data available, EDS’ major sites around the world consumed 878,372 MWh or 3,162,140 Gigajoules of electricity in 2007.

EDS is currently evaluating options for collecting and aggregating electric utility consumption information in locations outside the United States and the UK.

EDS purchases its electricity directly from the grid as provided by local utilities or by specific contracts where EDS facilities are in deregulated utility jurisdictions. EDS is in the process of evaluating options to purchase a mix of electricity from renewable and nonrenewable sources.

[EN5] Energy saved due to conservation and efficiency improvements.Energy saved due to conservation and efficiency improvements was not measured in 2007.

[EN6] Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives.

Table: EDS Eco-friendly Client Services

Services Description Eco-friendly Outcome(s)

Collaboration Services

Makes it possible for virtual teams to work together in shared team spaces with a foundation to support document management, search, workflow, portals and personalized sites.

Less travel and fewer communication and IT resources lead to reduced power usage and CO

2 emissions

Data Center Modernization Services

Moves a compute environment from its current operating environment to the desired one. The defined steps are delivered by our professional services organization through projects ranging from infrastructure rationalization to infrastructure transition.

Increased server utilization and lower energy usage

Operational and energy cost savings through site, processor and storage consolidation

End-of-Life Asset Services

Consolidates asset information while managing the significant costs associated with transitioning, retiring and disposing of IT hardware (PCs, laptops, servers, monitors and printers).

Reduced landfill waste

Environmentally appropriate and safe disposal of assets containing hazardous mercury and lead products

Delayed CO2 emissions through

embodied energy in manufacturing hardware

Enterprise Applications Hosting Services

Enables clients to gain the benefits of fully managed enterprise applications (Oracle, SAP, Siebel) for their business without the financial costs or risks involved in hosting those applications.

Reduced power consumption through improved hardware use

Reduced power usage and CO2

emissions

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Services Description Eco-friendly Outcome(s)

Managed Mainframe Services

Provides complete hosting support to z/OS mainframe clients.

Reduced power consumption through improved hardware use

Reduced requirement for new hardware because platform is leveraged across multiple clients

Reduced CO2 emissions stemming

from smaller data center footprint

Managed Messaging Services

Optimizes resources while providing for seamless growth (different mailbox sizes plus adapted storage services.) E-mail Protection Services offer the enhanced security of anti-spam and anti-virus.

Reduced need for messaging and storage hardware

Reduced power usage

Managed Output Services

Provides comprehensive enterprisewide management of office output (print/copy/scan/fax).

Reduced power, paper and consumables usage

Optimized print devices, minimizing wasteful hardware manufacturing, transportation and disposal

Reduced carbon footprints

Managed Remote Access Services

Enables secure access to corporate data and resources through a scalable virtual private network with 24x7 support from Global Network Operations Centers. Includes centralized policy control management; moves, adds, changes; usage control and enhanced reporting.

Support at hotels for remote employees, enabling them to travel only as needed

Immediate reduction of overhead and office expense, energy consumption and CO

2 emissions

Mobile Workplace Services

Provides ease of implementation, greater cost management controls, tighter governance over security and more flexibility for mobile technology.

Reduced carbon footprint

Reduced travel costs; ability to access critical data, e-mail and enterprise applications anywhere

Network Virtualization Services

Monitors and manages an entire network from a single administrator’s console. Treats all servers and services in the network as a single pool of resources that can be rearranged and redeployed in real time to meet changing user and transaction requirements.

Electrical savings of about 40 percent

Optimizes existing infrastructure

Server Management Services

Delivers secure, flexible and reliable server hosting and management services. Server virtualization makes a single server appear to function as multiple logical servers, thus reducing the number of physical servers in the data center through consolidation.

Reduced energy consumption through improved utilization of hardware

Reduced requirement for new hardware, which drives improvements in manufacturing, transportation and hardware disposal

Service Desk Services

Provides a single point of contact for resolution of all workplace incidents and requests. Processes such as remote desktop management (RDM) and first contact resolution (FCR) resolve incidents remotely.

Reduced need for field technicians to travel to site-reducing CO

2

emissions

User downtime reduced

Site Support Services

Provides on-site support for incidents and requests that cannot be handled remotely. Hardware support provides warranty repair for devices that are in warranty and out of warranty. Depot repair is a process by which failed devices can be mailed in for repair and a replacement device quickly sent to the customer.

Reduced need for field technicians to travel to site, reducing CO

2

emissions

User downtime reduced

Reduced need for hardware or parts storage; improved positions in manufacturing, transportation and hardware disposal

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Services Description Eco-friendly Outcome(s)

Storage Services Manages, protects, stores and retrieves client data using proven technologies to manage the information life cycle. These methods provide scalable, secure services from the data center to the desktop, eliminating redundant data and optimizing and improving storage utilization.

Reduced power usage and CO2

emissions

Thin Client Management Services

Provides an alternative to owning or leasing PCs. Supplies end users with secure access to centrally managed Windows applications, accessed via thin client devices in the desktop environment.

Reduced physical footprint through decreased power usage and CO

2

emissions

Hardware lasts longer, reducing landfill waste

Unified Communications Services

An integrated, fully managed communications platform to streamline communications and increase employee productivity. This flexible communications platform extends existing desktop applica tions and IT infrastructure and enhances PBX investment with software-enabled VoIP.

Reduced travel and its associated carbon footprint

Video Conferencing Services

Provides the ability to easily schedule, scale and control video conferences and to efficiently manage and monitor the video conferencing network.

Reduced travel and its associated carbon footprint

Web Hosting Services

Enables clients to take advantage of fully managed Web hosting while reducing their server, HVAC and environmental footprint.

Reduced power consumption – and CO

2 emissions – through improved

hardware use

Reduced travel and its associated carbon footprint

Workplace Server Management

Simplifies the management and operation of servers. This solution provides optimal IT management for server platforms deployed in complex environments.

Reduced energy consumption through improved hardware use

Reduced requirement for new hardware, which drives improvements in manufacturing, transportation and disposal of hardware

Reduced need for field technicians to travel to site, reducing CO

2

emissions

Workplace Software Management Services

Provides the planning, automation and distribution framework for rapidly and efficiently deploying operating systems, applications and security patches to computers across an organization via zero-touch technology.

Reduced need for field technicians to travel to site, reducing CO

2

emissions

Table: EDS Eco-friendly Client Services (continued)

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[EN7] Initiatives to reduce indirect energy consumption and reductions achieved.

Table: 2007 Indirect Energy Consumption Reduction Initiatives

Initiative Description Reduction in Indirect

Energy Achieved

Alternative Work Arrangements

Provided access to telecommuting and other alternative work arrangements to employees globally.

Not available

Company Transport Services

Provided ride-sharing services for employees in India. Not available

Enhance Internal Videoconferencing Network

Deployed videoconferencing across 10 major sites in our Australia and New Zealand region to reduce air travel and associated indirect carbon emissions. This supplements EDS’ global videoconferencing network.

Not available

Server Rationalization Initiated a server virtualization program in our Australia and New Zealand region to reduce the number of EDS servers.

Not available

Printer Consolidation Fuji Xerox helped our Australian operations streamline document production to save costs, increase productivity and reduce carbon emissions. We’ve been able to reduce equipment by 71 percent.

We jointly sell this solution to EDS clients.

Reduced carbon emissions by nearly 80 percent by using less paper, other consumables and electricity

Energy-efficient Design Features

Incorporated energy-efficient design features such as insulation, high-efficiency water heaters and low-flush toilets in targeted new and renovated facilities.

Not available

Water

[EN8] Total water withdrawal by source.Most water used by EDS globally is drawn from municipal water sources. Uses include HVAC cooling towers, drinking, sanitation and food preparation where cafeterias exist in EDS-owned buildings. EDS has not established a metric for water withdrawal by source.

At EDS’ global headquarters facility in Plano, Texas, two alternative water sources are used for irrigation instead of the municipal water supply. These two sources include surface water from White Rock Creek, for which EDS was granted rights by the State of Texas, and ground water from a deep well owned by EDS in the Woodbine Aquifer. In 2007, EDS used 231 million gallons of water from the creek and pumped over 186,000 gallons from the well, which reduced the amount of water EDS used from the municipal water supply by this same amount.

[EN9] Water sources significantly affected by withdrawal of water.Most water used by EDS globally is drawn from municipal water sources, and its use of water does not generally impact its water sources.

At EDS’ global headquarters facility, the water sources affected by the withdrawal of water for irrigation purposes are White Rock Creek and the Woodbine Aquifer. EDS, after gaining water rights to these sources, constructed a small chain of lakes on the property to contain enough water to supply the irrigation system. In the event the demand on the lake supply is too great, EDS supplements with water from the Woodbine Aquifer, which is pumped from the deep well on property.

[EN10] Percentage and total volume of water recycled and reused.In addition to the on-site water sources used for irrigation at EDS’ global headquarters facility, there is also a complex drainage system on the property that reclaims any excess irrigation and rain water and diverts it back to the chain of lakes. In 2007, it is estimated that EDS headquarters facility reclaimed almost 10 percent of the total irrigation and rain water used on property – more than 23 million gallons.

EDS does not currently track and report water recycled and reused, except at its global headquarters facility.

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Biodiversity

[EN11] Location and size of land owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside protected areas.EDS facilities are not generally located in or near areas of high biodiversity value; however, EDS has a property in Tulsa, Oklahoma, that includes 15 acres of Wetland Habitat.

[EN12] Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.EDS’ products, services and operations generally do not have a significant impact on biodiversity; however, in construction projects, EDS takes steps to mitigate negative impacts to biodiversity. For example, during the redevelopment of the Wavendon campus site in Milton Keynes (UK), several endangered species were captured and rehoused in line with the requirements of the UK Environmental Protection Act. Great-crested newts, badgers and bats were among the animals involved in this activity. In addition, bird boxes and other wildlife-friendly features have been incorporated into the layout of the site.

In Australia, EDS is a donor member of the Great Barrier Reef Research Foundation. This group brings Australians together to understand and resolve the complex biodiversity challenges facing their coral reefs. This strategic association aligns EDS with some of its clients as the solutions-based science integrates business, government and the public. EDS not only donates funding but has donated IT services to enhance the sharing of research knowledge between marine biologists.

[EN13] Habitats protected or restored.EDS has a property in Tulsa, Oklahoma, that includes 15 acres of Wetland Habitat. This habitat has been protected during two construction projects to preserve this bio-asset. EDS installed and maintains silt fencing and sediment control fixtures around the wetlands portion of the property. Approximately 3,000 feet of silt fencing has been installed around the wetlands area and adjoining job site employee parking lot area to prevent any sediment that may attempt to travel to the wetlands.

[EN14] Strategies, current actions and future plans for managing impacts on biodiversity.EDS’ products, services and operations generally do not have a significant impact on biodiversity; however, in construction projects, EDS takes steps to mitigate negative impacts to biodiversity.

In the UK, the continued rollout of our ISO 14001-certified Environmental Management System will provide the UK business with procedures for controlling impacts on biodiversity.

[EN15] Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.EDS believes at this time that no IUCN Red List species and national conservation list species are affected by our operations.

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Emissions, Effluents and Waste Streams

[EN16] Total direct and indirect greenhouse gas emissions by weight.EDS’ operations are not significant contributors of direct greenhouse gas (GHG) emissions. EDS contributes to the indirect release of CO2 by using utility-generated electricity.

Table: 2007 Direct and Indirect Greenhouse Gas (GHG) Emissions (in metric tons CO

2 Equivalent)

Description2007 CO

2 Emissions in

Metric Tons

CO2 Direct 1 63,548

CO2 Indirect (Scope 2) 2 520,211

CO2 Indirect (Scope 3) 3 88,465

CH4 Direct Not available

N2O Direct Not available

HFCs Direct Not available

PFCs Direct Not available

CF6 Direct Not available

Subtotal Direct 63,548

Subtotal Indirect 608,676

Total Direct and Indirect GHG Emissions

672,224

Calculation sources: GHG Protocol “CO2 emissions from transport or mobile sources,” “CO

2 emissions from fuel

use in facilities,” “Indirect CO2 emissions from purchased electricity” and “CO

2 emissions from business travel”

calculation tools at http://www.ghgprotocol.org/calculation-tools/service-sector.

1 Calculated from natural gas and petroleum-derived fuel data from EDS’ global operations, where available.

2 Calculated from electricity data from EDS’ global operations, where available. This includes data from all major sites in the U.S., UK, Australia, New Zealand, Canada, France, Germany, Ireland, Italy, Switzerland, Argentina, Brazil and Mexico.

3 Includes global indirect emissions from business travel based on global commercial airline travel and car rentals.

[EN17] Other relevant indirect greenhouse gas emissions by weight.

Table: 2007 Global Business Travel – Commercial Airline Travel and Car Rentals

DescriptionCO

2 Emissions

in Metric Tons

Commercial airline travel 79,513

Car rentals 8,952

Total 88,465

Calculation source: GHG Protocol “CO2 emissions from business travel” calculation tool at

http://www.ghgprotocol.org/calculation-tools/service-sector.

[EN18] Initiatives to reduce greenhouse gas emissions and reductions achieved.EDS is working to develop a set of baseline greenhouse gas measurements that will be used to quantify the activities and initiatives taken to reduce emissions. EDS is developing an approach that will rank our facilities and operations from most inefficient to most efficient. This work will create a platform for a comprehensive strategy to measure and improve our overall environmental footprint.

EDS’ primary greenhouse gas emissions come from electricity consumption. Refer to GRI EN7 for a list of initiatives to reduce indirect energy consumption.

[EN19] Emissions of ozone-depleting substances by weight.EDS is not a manufacturer and, therefore, our business processes produce an insignificant amount of ozone-depleting substances. Limited amounts of leakage of ozone-depleting substances may occur from HVAC cooling towers and refrigeration equipment.

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[EN20] NOx, SO

x, and other significant air emissions by type and weight.

EDS has limited direct burning of fuel at its facilities globally and believes these emissions are nomimal. EDS has not undertaken the complex quantification efforts required to accurately calculate the NOx, SOx and other significant air emissions related to the limited direct burning of fuel.

[EN21] Total water discharge by quality and destination.EDS does not currently track and report water discharge by facility.

[EN22] Total weight of waste by type and disposal method.Refer to the Environmentally Conscious IT Equipment Disposal section of this report for weight and disposal methods associated with e-waste streams processed on behalf of EDS and our clients.

In addition, EDS maintains a recycling and waste-reduction program with the goal of keeping recyclable or reusable materials out of landfills. In 2007, EDS recycled more than 140 metric tons of paper, plastic and aluminum materials from our facilities at the global headquarters in Plano, Texas. In addition, more than 181 metric tons of landscape debris (grass clippings, leaves, tree limbs, etc.) were either reused as mulch on campus or composted for reuse by the city of Plano. Due to the recycle programs currently in place, only 414 metric tons of solid waste were sent to local landfills and 40,000 gallons of waste liquid to treatment facilities.

Other materials that are recycled include the following:

Batteries•

Ballasts•

Organic waste from food services•

Reuse of existing EDS assets, such as fuel •tanks, generators and furniture

Styrofoam coffee cups are not provided in •common area coffee stations; employees provide their own reusable cups

In our UK operations, we raised awareness of enhanced recycling programs through regional communications. The following recycling results were achieved:

45 metric tons of paper and cardboard•

7.5 metric tons of plastic•

8 metric tons of aluminum•

6 metric tons of wood•

[EN23] Total number and volume of significant spills.EDS had no significant spills or other releases of hazardous substances that caused any significant environmental impact.

[EN24] Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally.EDS is not a manufacturer, user or carrier of potentially hazardous materials on any significant scale; however, EDS is dedicated to environmentally conscious IT equipment disposal.

Table: Weight of waste deemed hazardousType of Hazardous Waste Metric Tons

E-waste processed on behalf of clients globally 1,395

E-waste processed within EDS’ U.S. operations 4,419

Refer to the Environmentally Conscious IT Equipment Disposal section of this report for disposal methods associated with e-waste streams processed on behalf of EDS and our clients.

[EN25] Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.Water bodies and related habitats are not significantly affected by discharges of water and runoff from EDS operations; however, the chain of lakes used for irrigation at the EDS Plano campus, which is supplied by White Rock Creek, encompasses more than 21 acres of lake and two acres of land, which are home to several species of migratory birds, fish and wildlife. In 2007, this area was designated by the United States Army Corps of Engineers as a Preserve Area. The area is closely monitored to prevent any adverse affects from runoff or water discharge from the surrounding areas.

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Products and Services

[EN26] Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.EDS’ eco-friendly client services listed in response to GRI EN6 help mitigate environmental impact. Together with the EDS Agility Alliance members, EDS is working to optimize the performance and minimize the environmental impact of technology on EDS operations, as well as those of its clients.

[EN27] Percentage of products sold and their packaging materials that are reclaimed by category.EDS is not a manufacturer. EDS is a reseller and user of technology products and offers end-of-life services on behalf of our own operations and our clients. Refer to the Environmentally Conscious IT Equipment Disposal section of this report for weight and disposal methods associated with e-waste streams processed on behalf of EDS and our clients.

EDS does not currently report and track the total number of units bought compared to the number of units recycled. In addition, we do not currently measure the packaging associated with those units.

Compliance

[EN28] Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations.EDS did not have any significant fines or nonmonetary sanctions for noncompliance with environmental laws and regulations in 2007.

Transport

[EN29] Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations and transporting members of the workforce.EDS provides access to telecommuting and other alternative work arrangements to employees globally. Several thousand employees participate in this program, conserving fuel and avoiding emissions.

In addition, EDS offers company transport services for employees in India. The program includes pickup, drop off, logging and security escorts for female employees, among other features. In 2007, more than 9,600 employees participated in this program. Improvements planned for 2008 include driver counseling, security escort training, fleet management initiatives, program incentives and tracking.

EDS also provides support for the use of public transit systems in some global locations.

Refer to GRI EN3 for environmental impacts associated with EDS’ corporate auto fleet. We manage fleet turnover, advocate maintenance according to manufacturer’s specifications and consult with our fleet managers to determine the right vehicle type for the duty being performed. For example, we have replaced several full-size cargo express vans with smaller vans.

Refer to GRI EN17 for environmental impacts associated with employee business travel. EDS’ global broadcast network and enhanced videoconferencing network are used to reduce business travel where practical. For example, state-of-the-art facilities were deployed across 10 major EDS sites in Australia and New Zealand to encourage less staff travel and foster relationship-building across virtual teams who do not usually travel.

Environmental Protection Expenditures and Investments

[EN30] Total environmental protection expenditures and investments by type.EDS’ expenditures and investments in environmental sustainability initiatives are currently included in regional and service line budgets and were not consolidated globally for 2007.

EDS and the EDS logo are registered trademarks of Electronic Data Systems Corporation. All other brand or product

names are trademarks or registered marks of their respective owners. EDS is an equal

opportunity employer and values the diversity of its people. Copyright © 2008 Electronic Data Systems Corporation. All

rights reserved. 08/2008 7GCJH8103

Contact us

Corporate Headquarters

United States

5400 Legacy DrivePlano, Texas 75024

USA

1 800 566 9337

Regional Headquarters

Asia

36F, Shanghai Information Tower211 Century Avenue

PudongShanghai, SHAChina 200120

86 21 2891 2888

Australia & New Zealand

Level 1, The Bond30 Hickson Road

Millers PointNew South Wales 2000

Australia

612 8965 0500

Canada33 Yonge StreetToronto, Ontario

M5E 1G4 Canada

1 416 814 45001 800 814 9038

(in Canada only)

Europe, Middle East & Africa

2nd Floor Lansdowne House

Berkeley SquareLondon W1J 6ER

44 20 7569 5100

Latin AmericaEstrada Samuel Aizemberg, 1707

Tower C – 4th FloorSão Bernardo do Campo, SP

Brazil 09851-55055 11 4399 8875

About EDS

EDS (NYSE: EDS) is a leading global technology services company delivering business

solutions to its clients. EDS founded the information technology outsourcing industry

more than 46 years ago. Today, EDS delivers a broad portfolio of information

technology and business process outsourcing services to clients in the manufacturing,

financial services, healthcare, communications, energy, transportation, and consumer and

retail industries and to governments around the world. Learn more at eds.com.

EDS is proud to be the title sponsor of the EDS Byron Nelson Championship and the

global technology sponsor of the Nobel Prize Series.