Perot Systems, Community Health Systems Relationship to Change

PLANO, Texas, Oct. 5 /PRNewswire-FirstCall/ -- Perot Systems Corporation (NYSE:PER) today announced that Community Health Systems, Inc. (NYSE:CYH), has provided notification to Perot Systems that, as a result of its merger with Triad Hospitals, Inc. and expected integration plans, it intends to end the current services agreements that Perot Systems signed with Triad Hospitals, Inc. in 2006.

Under the termination for change of control provisions of the agreements, Community Health Systems will pay Perot Systems a termination fee and will reimburse Perot Systems for certain shutdown costs.

Although the termination will be effective December 31, 2007, Perot Systems will provide Community Health Systems with termination and transition assistance services. These transition assistance services are currently expected to be performed into 2008. Perot Systems may also provide systems integration and infrastructure services in support of Community Health Systems' IT strategy under a new arrangement. Perot Systems and Community Health Systems are currently negotiating terms and conditions related to the new arrangement.

"Our operating philosophy is to manage IT services internally," said Gary Seay, senior vice president and chief information officer for Community Health Systems. "This change is consistent with our technology strategy. Throughout this process, Perot Systems has been a trusted and dedicated partner and we are pleased with their performance and commitment to our business."

Perot Systems has been providing IT outsourcing and systems implementation services for Triad Hospitals since 2006. For the second quarter of 2007, Perot Systems earned revenue of $20 million from its contract with Triad Hospitals. The gross profit on this contract was approximately breakeven. In the second quarter, Perot Systems stopped recording profit on the software implementation element of the contract because of uncertainty surrounding Community Health Systems' post-merger technology strategy for Triad Hospitals.

"We stand ready to support Community Health Systems in this transition and are excited about the potential to work with them in a new capacity," said Peter Altabef, president and CEO, Perot Systems.

Earlier today, Community Health Systems filed a current report on Form 8-K regarding the expected end of the current services agreements.

About Perot Systems

Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2006 revenue of $2.3 billion. The company has more than 23,000 associates located in North America, Europe, and Asia. Additional information on Perot Systems is available at

This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. For factors that could affect our business and cause actual results to differ materially, please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as filed with the U.S. Securities and Exchange Commission and available at, as updated in our Quarterly Reports on Form 10-Q filed after such Form 10-K, for additional information regarding risk factors. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.

    Perot Systems Corporation
    Media Contact:
    Sharon Lakes
    +1 972 577 6012

    Investor Contact:
    John Lyon
    +1 972 577 6132

Source: Perot Systems Corporation

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