Important Update Regarding the Electronic Data Systems Settlement.

On July 15, 2008, the Settlement Administrator mailed award checks to all claimants who filed a valid claim. According to the Court-approved Plan of Allocation, if a claimant’s total award would have fallen below $10.00, then that claimant is not eligible to receive a payment from the settlement fund.

If you did not receive a notice of rejection and did not receive a distribution check, your total award may have fallen below $10.00.


Your Rights May Be Affected by a Proposed Settlement of Class Action

In this lawsuit (the "Action"), Lead Plaintiff, the Department of the Treasury of the State of New Jersey and its Division of Investment on behalf of Common Pension Fund A ("New Jersey" or "Lead Plaintiff"), alleges that Defendants violated the Securities Exchange Act of 1934 ("Exchange Act") by making materially false and misleading statements and omissions regarding EDS' revenues and profitability during the period from February 7, 2001 through and including September 18, 2002 (the "Class Period"). New Jersey contends that investors were misled by Defendants' statements which appeared in press releases and in documents filed with the Securities and Exchange Commission ("SEC").

New Jersey alleges that EDS' financial statements were false based upon Defendants' improper use of percentage of completion accounting to recognize revenue, primarily in connection with a very significant contract with the U.S. Navy (the "NMCI Contract"), despite the known serious delays in implementing the contract that precluded revenue recognition. As a result, Lead Plaintiff contends that EDS' financial results were materially misstated, causing the prices of EDS securities to be artificially inflated throughout the Class Period.

Defendants deny the allegations against them.

The parties to this action have reached an agreement to settle the action. Under the terms of the proposed settlement, which must be approved by the Court, $137.5 million will be paid by or on behalf of defendants. If you are a member of the Class in the EDS Securities Litigation and you submit a timely Claim Form, you may be eligible to receive a share of the Settlement Fund, if the proposed settlement is approved by the Court.

The Final Approval Hearing was held on March 7, 2006 at 10:00 a.m. before the Honorable Leonard Davis, in the United States District Courthouse, Eastern District of Texas, Tyler Division. The Honorable Leonard Davis granted final approval of the Settlement on Tuesday, March 7, 2006.

Plaintiff's damages expert, using standard statistical techniques, determined that EDS Common Stock (CUSIP No. 285661104), Feline Prides (CUSIP No. 285661203) and Call Options on Common Stock (referred to as "Eligible Securities") suffered losses as a result of defendants' alleged materially false and misleading statements. Plaintiff's damages expert also determined that there was insufficient evidence of loss causation to conclude that other EDS securities, including EDS Notes and Convertible Notes, suffered compensable damages as a result of defendants' alleged violations of the federal securities laws. Accordingly, if you purchased or acquired EDS Notes or Convertible Notes during the Class Period, you are a member of the Class, but you will not receive a recovery from the Settlement for those purchases.