UNISYS CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 (UNAUDITED) (Millions, except share data) 1999 1998 ----------- ----------- Earnings per share computation - basic Income before extraordinary item $ 150.5 $ 93.8 Less dividends on preferred shares ( 1.9) ( 26.6) ----------- ----------- Income available to common stockholders before extraordinary item 148.6 67.2 Extraordinary item ( 12.1) ----------- ----------- Net income available to common stockholders $ 136.5 $ 67.2 =========== =========== Weighted average shares 302,182,675 254,876,000 =========== =========== Earnings per share - basic Income before extraordinary item $ .49 $ .26 Extraordinary item (.04) ----------- ----------- Net income $ .45 $ .26 =========== =========== Earnings per share computation - diluted Income available to common stockholders before extraordinary item $ 148.6 $ 67.2 Plus impact of assumed conversions Interest expense on 8 1/4% Convertible Notes due 2006, net of tax - .4 ----------- ----------- Income available to common stockholders before extraordinary item 148.6 67.6 Extraordinary item ( 12.1) ----------- ----------- Net income available to common stockholders $ 136.5 $ 67.6 =========== =========== Weighted average shares 302,182,675 254,876,000 Plus incremental shares from assumed conversions Employee stock plans 11,492,800 11,538,799 8 1/4% Convertible Notes due 2006 - 3,975,247 Preferred Stock 866,000 1,349,954 ----------- ----------- Adjusted weighted average shares 314,541,475 271,740,000 =========== =========== Earnings per share - diluted Income before extraordinary item $ .47 $ .25 Extraordinary item (.04) ----------- ----------- Net income $ .43 $ .25 =========== =========== The average shares listed below were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented. Series A preferred stock 3,895,078 47,448,144