CSC Offers £1.90/Share in Cash for Xchanging Plc

Computer Sciences Corporation

and Xchanging Plc.

today announced that the boards of each company have agreed to terms of a recommended transaction under which CSC (through a UK subsidiary) would acquire Xchanging at a price of £1.90 per share in cash, implying an equity value of £480 million, or approximately US$720 million. The acquisition is expected to close in the next six months pending receipt of regulatory approvals. The combination represents an attractive opportunity to combine CSC's global scope in insurance, business process outsourcing (BPO) and IT services with Xchanging's specific expertise and leading software products that support the commercial insurance industry.