(unaudited)

                                Second Quarter Ended                                

Oct. 1,

Oct. 3,

              % of Total               

(In millions)

      2004      

      2003      

Fiscal 2005

Fiscal 2004

    U.S. commercial

$   929.2   

$   907.1   

23%     

25%     

    Europe

1,034.9   

851.9   

26        

24        

    Other international

        297.8   

        286.7   

          8        

          8        

Global commercial segment

     2,261.9   

     2,045.7   

        57        

        57        

    Department of Defense

956.0   

977.2   

25        

27        

    Civil agencies

664.2   

505.0   

17        

14        

    Other ⁽¹⁾

          52.4   

          63.3   

          1        

          2        

U.S. federal government segment

     1,672.6   

     1,545.5   

        43        

        43        

$3,934.5   
=========

$3,591.2   
=========

100%     
=========

100%     
=========

                                   Six Months Ended                                    

Oct. 1,

Oct. 3,

              % of Total              

(In millions)

      2004      

      2003      

Fiscal 2005

Fiscal 2004

    U.S. commercial

$1,840.8   

$1,845.0   

24%     

26%     

    Europe

1,975.0   

1,671.1   

26        

23        

    Other international

        601.9   

        578.5   

          8        

          8        

Global commercial segment

     4,417.7   

     4,094.6   

        58        

        57        

    Department of Defense

1,885.7   

1,875.1   

25        

26        

    Civil agencies

1,261.3   

1,052.1   

16        

15        

    Other ⁽¹⁾

        106.2   

        124.2   

          1        

          2        

U.S. federal government segment

     3,253.2   

     3,051.4   

        42        

        43        

$7,670.9   
=========

$7,146.0   
=========

100%     
=========

100%     
=========

Other revenues consist of state and local government as well as commercial contracts performed by the U.S. Federal Sector reporting segment.

Note:

The table presents revenues for each year by reportable segment as disclosed in the Form 10-Q. In past years, revenues by market sector were presented, which differs slightly due to the classification of certain overlapping activities between segments. For simplicity this secondary presentation has been eliminated. The total classification difference between the two presentations was $13.0 million and $28.6 million for the quarter and six months ended October 1, 2004.

(unaudited)

     Second Quarter Ended    

         Six Months Ended        

(In millions except per-share amounts)

Oct. 1, 2004

Oct. 3, 2003

Oct. 1, 2004

Oct. 3, 2003

Revenues

   $3,934.5   

   $3,591.2   

   $7,670.9   

   $7,146.0   

Costs of services

3,241.3   

2,958.6   

6,294.9   

5,890.3   

Selling, general and administrative

201.6   

199.9   

430.1   

408.6   

Depreciation and amortization

262.8   

229.0   

517.4   

464.0   

Interest expense

40.2   

40.5   

79.4   

83.6   

Interest income

(2.2)  

(1.4)  

(4.5)  

(4.4)  

Special items

            9.2   

          15.4   

Total costs and expenses

     3,743.7   

     3,435.8   

    7,317.3    

     6,857.5   

Income before taxes

190.8   

155.4   

353.6    

288.5   

Taxes on income

         60.3   

          47.3   

       112.7    

          88.1   

Net income

$    130.5   
=========

$    108.1   
=========

$    240.9    
=========

$    200.4   
=========

Earnings per share:

     Basic

$      0.69   
=========

$      0.58   
=========

$      1.28    
=========

$      1.07   
=========

     Diluted

$      0.68   
=========

$      0.57   
=========

$      1.26    
=========

$      1.06   
=========

(unaudited)

(In millions)

 Oct. 1, 2004 

April 2, 2004

Assets

  Cash and cash equivalents

$     546.3   

$     609.7   

  Receivables

3,788.7   

3,616.3   

  Other current assets

           935.0   

           641.2   

      Total current assets

        5,270.0   

        4,867.2   

  Property and equipment, net

2,288.0   

2,178.4   

  Outsourcing contract costs, net

1,151.5   

1,131.8   

  Software, net

433.9   

403.2   

  Excess of cost of businesses acquired over related net assets, net

2,617.2   

2,604.8   

  Other assets

           568.5   

           618.6   

      Total assets

$12,329.1   
==========

$11,804.0   
==========

  Short-term debt and current maturities of long-term debt

$     562.5   

$       60.2   

  Accounts payable and accrued expenses

2,508.8   

2,557.1   

  Deferred revenue

516.7   

334.2   

  Income taxes payable

           408.0   

           301.7   

      Total current liabilities

        3,996.0   

        3,253.2   

  Long-term debt, net

1,806.0   

2,306.4   

  Other long-term liabilities

743.4   

740.7   

  Stockholders' equity

        5,783.7   

        5,503.7   

      Total liabilities and stockholders' equity

$12,329.1   
==========

$11,804.0   
==========

The following tables reconcile Earnings Before Interest, Taxes, Depreciation and Amortization, and Special Items (EBITDA and Special Items); Earnings Before Interest and Taxes (EBIT); and Free Cash Flow to the most directly comparable financial measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP). CSC management believes that these three non-GAAP financial measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide another measure of the Company's profitability and ability to service its debt, and are considered important measures by financial analysts covering CSC and its peers.

(In millions)

EBITDA / EBIT (unaudited)

 Second Quarter Ended 

     Six Months Ended     

Oct. 1,

Oct. 3,

Oct. 1,

Oct. 3,

     2004     

     2003     

     2004     

     2003     

EBITDA and Special Items

$ 491.6    

$ 432.7    

$ 945.9    

$ 847.1    

    Special Items

         9.2    

       15.4    

EBITDA

491.6    

423.5    

945.9    

831.7    

    Depreciation and Amortization

     262.8    

     229.0    

     517.4    

     464.0    

EBIT

228.8    

194.5    

428.5    

367.7    

    Interest, net

       38.0    

       39.1    

       74.9    

       79.2    

Income Before Taxes

190.8    

155.4    

353.6    

288.5    

    Income Taxes

       60.3    

       47.3    

     112.7    

       88.1    

Net Income

$ 130.5    
=======  

$ 108.1    
=======  

$ 240.9    
=======  

$ 200.4    
=======  

Net Income as a percent of revenue

3.3%    

3.0%    

3.1%    

2.8%    

Free Cash Flow (unaudited)

Six Months Ended

Oct. 1,

Oct. 3,

     2004     

     2003     

Free Cash Flow

$  (81.9)   

$(195.3)   

Cash flows used in investing activities

696.5    

562.1    

Acquisition, net of cash acquired

(20.5)   

Dispositions

         1.0    

       10.2    

Cash flows provided by operating activities

$ 595.1    
=======  

$ 377.0    
=======