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                                   PROXY

THIS PROXY SOLICITED BY THE BOARD OF DIRECTORS
October 13, 1994

                   POLICY MANAGEMENT SYSTEMS CORPORATION
                              ONE PMS CENTER
                     BLYTHEWOOD, SOUTH CAROLINA  29016

The undersigned hereby appoints G. Larry Wilson and John P.
Seibels proxies with full power of substitution and revocation to
vote on the undersigned's behalf at the Annual Meeting of the
Stockholders of Policy Management Systems Corporation, to be held
at 11:00 a.m., October 13, 1994, in the offices of the Company,
One PMS Center, Blythewood, South Carolina, and at all
adjournments thereof, upon all business as may properly come
before the Meeting, including the following as more fully
described in the Notice of Annual Meeting and Proxy Statement,
receipt of which is hereby acknowledged.  PROXIES WILL BE VOTED
IN ACCORDANCE WITH ANY INSTRUCTIONS INDICATED BELOW.  IF NO
SPECIFICATION IS MADE, PROXIES WILL BE VOTED FOR THE NOMINEES FOR
DIRECTORS AND PROPOSAL 2 AND IN FAVOR OF THE PROPOSED AMENDMENT
TO THE ARTICLES OF INCORPORATION.  THIS PROXY IS REVOCABLE ANY
TIME PRIOR TO ITS USE.
    

1.  ELECTION OF DIRECTORS  [ ] FOR all nominees     [ ] WITHHOLD AUTHORITY
                               listed below (except     to vote for all
                               as marked to the         nominees listed 
                               contrary below)          below

NOMINEES:  (1) Roy L. Faulks; (2) Frederick B. Karl; (3) Richard
G. Trub; (4) Steven A. Denning

(INSTRUCTIONS:  To withhold authority to vote for any individual
nominee write that nominee's name in the space provided below.)

     
2. RATIFICATION OF THE SELECTION     [ ]  FOR    [ ]  AGAINST   [ ]  ABSTAIN
   OF COOPERS & LYBRAND AS
   INDEPENDEND AUDITORS for
   the Company

3. APPROVAL OF THE AMENDMENT TO      [ ]  FOR    [ ]  AGAINST   [ ]  ABSTAIN
   THE ARTICLES OF INCORPORATION 
   to eliminate the mandatory 
   retirement age for members 
   of the Board

In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the Meeting.

Date      
X    

(Signature should agree with name on stock, as shown hereon. 
Officers, fiduciaries, etc., so indicate.  When shares are held
in the names of more than one person, each person should sign the
proxy.)