EXHIBIT 99.1
[PEROT SYSTEMS LETTERHEAD]
INVESTOR CONTACT: MEDIA CONTACT:
Perot Systems Corporation Perot Systems Corporation
John Lyon Mindy Brown
Phone: (972) 577-6132 Phone: (972) 577-6165
Fax: (972) 577-6790 Fax: (972) 577-4484
John.Lyon@ps.net Mindy.Brown@ps.net
PEROT SYSTEMS SUBMITS DOCUMENTS TO THE CALIFORNIA
ATTORNEY GENERAL AND A CALIFORNIA STATE SENATE COMMITTEE
Today, June 20, 2002, Perot Systems Corporation (NYSE: PER) will deliver five
boxes of documents to the California Attorney General and a committee of the
California State Senate.
The information to be delivered today is the product of an ongoing process of
searching for and producing information in response to the California Attorney
General's subpoena and the committee's request. This process includes an
extensive examination of the company's records. The documents produced today
include final and draft documents.
The documents provided today to the California Attorney General and the
committee, except those containing employee or client confidential information,
will be filed in a Form 8-K with the Securities and Exchange Commission. This
information will also be posted at URL=access.perotsystems.com, or may be
accessed through http://www.perotsystems.com.
Perot Systems continues to believe that:
o The company did not improperly reveal, disclose or use any confidential
proprietary information from the California Independent System Operator or
the California Power Exchange.
o The company was not hired by any energy company to provide market
simulation or gaming software or services for the deregulated California
energy market.
Page 1
Perot Systems Submits Documents to the State of California Page 2 of 4
Perot Systems has provided a range of unrelated services to Southern California
Edison, Los Angeles Department of Water and Power and other energy companies in
the United States and the United Kingdom.
After completing a detailed analysis of the 44-page document provided by Reliant
Energy to the committee, Perot Systems continues to believe that the examples
contained in the document were based on publicly available information and that
any "holes" in the market protocols discussed in the document were corrected and
were posted to the Federal Energy Regulatory Commission (FERC) Web site prior to
the market opening on April 1, 1998. It remains unknown how this document was
obtained by Reliant Energy.
Perot Systems has located a 115-page presentation that was used to provide a
market overview to Reliant Energy on June 26, 1998. The 115-page document is the
presentation underlying the $11,673 payment previously disclosed by Perot
Systems Corporation as the only payment received from Reliant Energy. The
examples in this presentation were based on publicly available information.
Perot Systems has engaged Dr. Steven Stoft, an economist, recognized expert on
the California energy market and author of the book, Power System Economics:
Designing Markets for Electricity, to provide expert assistance. With respect to
the 44-page document, Dr. Stoft said, "The 44-page document released by Senator
Dunn contains the standard academic view - a view that I and others expressed in
numerous published materials - that the California power market rules were
flawed. The specific market rules discussed in this document were a matter of
public record. The hypothetical examples show how the market rules, as initially
published, would have worked. These examples make no use of any private or
confidential information, and no such information was required to recognize or
illustrate the `holes' discussed. That these `holes' were corrected even before
the California market opened - as the document itself notes - demonstrates that
it simply could not have served as a `blueprint' for manipulation of California
electricity prices."
Additionally, Dr. Stoft said, "The separate 115-page presentation that appears
to have been used at Reliant was a California market overview to a potential
market participant. Like the 44-page document, it, too, was based on information
in the public record and revealed no confidential information about the market."
Perot Systems Submits Documents to the State of California Page 3 of 4
As part of its document production, Perot Systems is also delivering documents
received from Policy Assessment Corporation, a company not affiliated with Perot
Systems. Policy Assessment Corporation marketed services and software to various
energy companies, both independently and in conjunction with Perot Systems.
These marketing efforts generated no business for Perot Systems. Perot Systems
paid $3,082 to Policy Assessment Corporation for services provided to Perot
Systems and related travel expenses during the fourth quarter of 1997. Documents
provided by Policy Assessment Corporation to Perot Systems after the issuance of
the California Attorney General's subpoena bear a separate designation "PSC-PAC"
in the document production. Some of the "PSC-PAC" documents were also found in
Perot Systems' files and are therefore included in the "PSC" documents. A
statement of Dr. George Backus, President of Policy Assessment Corporation,
dated June 19, 2002, is being filed as an exhibit to the Perot Systems SEC
filing on Form 8-K.
Included in the production are documents indicating Perot Systems participated
with Policy Assessment Corporation in a marketing effort to Enron. No business
was conducted with Enron. The only payment from Enron to Perot Systems was in
the amount of $3,060 for personal computer/local area network services performed
in 1994.
The documents produced today also reflect marketing efforts to utilities and
other energy companies relating to their participation in the deregulated
California energy market. These marketing efforts were also unsuccessful.
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 has more
than 400 clients and reported 2001 revenue of $1.2 billion. The company has more
than 8,500 associates located in the United States, Europe, and Asia. Additional
information on Perot Systems is available at http://www.perotsystems.com.
Perot Systems Submits Documents to the State of California Page 4 of 4
ABOUT DR. STEVEN STOFT
Steven Stoft, Ph.D., Economics, University of California, Berkeley, is author of
Power System Economics: Designing Markets for Electricity (Wiley/IEEE, 2002).
Dr. Stoft is a former Senior Research Fellow, University of California Energy
Institute, and a former Economist, Office of Economic Policy, Federal Energy
Regulatory Commission.
Statements contained within this press release may contain forward-looking
statements, which involve risks and uncertainties that may cause actual results
to vary from those contained in the forward-looking statements. In some cases,
you can identify such forward-looking statements by terminology such as "may,"
"will," "could," "forecasts," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," or "continue." In evaluating all
forward-looking statements, you should specifically consider various factors
that may cause actual results to vary from those contained in the
forward-looking statements, including the fact that Perot Systems' investigation
into this matter is not yet complete and the continuing investigation could lead
to additional information and documents that materially affect Perot Systems'
current understanding of this matter. In addition, please refer to the Perot
Systems Annual Report on Form 10-K for the fiscal year ended December 31, 2001,
as filed with the U.S. Securities and Exchange Commission and available at
www.sec.gov, for information regarding additional risk factors relating to Perot
Systems' business. Perot Systems disclaims any intention or obligation to revise
any forward-looking statements whether as a result of new information, future
developments, or otherwise.
# # #