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Frequently Asked Questions

1.What Is This Lawsuit About?
2.Why Is This A Class Action?
3.Why Is There A Settlement With Defendants?
4.How Do I Know If I Am Part Of The Settlement?
5.Who Is Excluded?
6.What Does The Settlement Provide?
7.When Will I Get My Payment?
8.Do I Have A Lawyer In This Case?
9.How Will The Lawyers Be Paid?
10.How Do I Tell The Court That I Don't Like The Settlement?
11.What's The Difference Between Objecting And Excluding?
12.When And Where Will The Court Decide Whether To Approve The Settlement?
13.What Happens If I Do Nothing At All?
14.Are There More Details About The Settlement?
15.How Do I Get More Information?

1. What Is This Lawsuit About?
 

This case was brought as a class action alleging that Defendants violated the securities laws by making materially false and misleading statements and omissions regarding EDS's revenues and profitability during the period from February 7, 2001 through and including September 18, 2002. Defendants have denied that they did anything wrong.

To access the Amended Consolidated Class Action Complaint, filed on July 7, 2003 (the "Amended Complaint"), which is the operative complaint in the Action, please click here. You can access the Notice of Proposed Settlement of Class Action, which contains a description of the history of the Action by clicking here.



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2. Why Is This A Class Action?
 

In a class action, one or more people called class representatives (in this case the Court-appointed Lead Plaintiff New Jersey) sue on behalf of people who have similar claims. All these people are called a Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. Judge Leonard Davis is in charge of this class action.



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3. Why Is There A Settlement With Defendants?
 

The Court did not decide in favor of Lead Plaintiff or Defendants. Instead, these parties agreed to a settlement. That way, they avoid the cost and risks of a trial, and eligible Class Members who make a valid claim will get compensation. The Lead Plaintiff and its attorneys think the Settlement is best for all Class Members.



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4. How Do I Know If I Am Part Of The Settlement?
 

The Class includes all persons or entities who purchased or acquired EDS securities between February 7, 2001 through and including September 18, 2002, and who were damaged thereby, except those persons and entities that are excluded, as described below.



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5. Who Is Excluded?
 

You are not a Class Member if you are EDS; Richard H. Brown; James E. Daley; a member of the families of Brown or Daley; any parent, subsidiary, affiliate, partner, officer, executive, or director of any Defendant; any entity in which any such excluded person has a controlling interest; or the legal representative, heir, successor, or assign of any such excluded person or entity. You are also not a Class Member if you validly excluded yourself from the Class by June 28, 2005.

If you sold EDS securities between February 7, 2001 and September 18, 2002, or if you owned EDS securities between February 7, 2001 and September 18, 2002 which were purchased or acquired before February 7, 2001, that alone does not make you a Class Member. You are a Class Member only if you purchased or acquired EDS securities between February 7, 2001 and September 18, 2002, and were damaged by such purchase(s) or acquisition(s).



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6. What Does The Settlement Provide?
 

Defendants have agreed to pay $137.5 million in cash to be divided among all eligible Class Members who send in valid claim forms, after payment of Court-approved attorneys' fees and expenses, taxes and the cost of preparation of tax returns, and the costs of claims administration, including the costs of printing and mailing the Notice of Proposed Settlement of Class Action and the cost of publishing notice (the "Net Settlement Fund").


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7. When Will I Get My Payment?
 

Initial distribution payments were sent to eligible Class Members in July 2008.



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8. Do I Have A Lawyer In This Case?
 

The Court approved the law firms of Bernstein Litowitz Berger & Grossmann LLP and Lowenstein Sandler PC to represent you and other Class Members. These lawyers are called Lead Counsel. You will not personally be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.



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9. How Will The Lawyers Be Paid?
 

Lead Counsel asked the Court for attorneys' fees not to exceed 19.45% of the settlement fund (an estimated average of approximately $0.082 per share of common stock, $0.036 per call option, and $0.078 per FELINE PRIDE) and for reimbursement of Lead Counsel's and Lead Plaintiff's out-of-pocket expenses as authorized by law up to $5.5 million (an estimated average of approximately $0.017 per share of common stock, $0.007 per call option, and $0.016 per FELINE PRIDE). Such sums as may be approved by the Court will be paid from the Settlement Amount of $137.5 million. Class Members are not personally liable for any such fees or expenses.

On Tuesday, March 7, 2006, the Honorable Leonard Davis approved Lead Counsel’s request for attorney’s fees.



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10. How Do I Tell The Court That I Don't Like The Settlement?
 

The deadline to object to the Settlement was February 21, 2006. On March 7, 2006, the Honorable Leonard Davis approved the Settlement.



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11 What's The Difference Between Objecting And Excluding?
 

Objecting is simply telling the Court that you don't like something about the Settlement. If you object, you can still file a Proof of Claim. If you excluded yourself from the Class by June 28, 2005, you cannot object and you cannot file a Proof of Claim.



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12. When And Where Will The Court Decide Whether To Approve The Settlement?
 

The Court held a fairness hearing at 10:00 a.m., on March 7, 2006, at the United States Courthouse, 211 W. Ferguson, Tyler, TX 75702. The Court decided to approve the Settlement and Lead Counsel’s request for attorneys’ fees.



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13. What Happens If I Do Nothing At All?
 

If you do nothing, you'll get no money from this Settlement. But, unless you timely and validly excluded yourself, you won't be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants about the same issues in this case.



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14. Are There More Details About The Settlement?
 

This Notice of Proposed Settlement of Class Action summarizes the proposed settlement. More details are in the Stipulation of Settlement and attachments thereto, dated as of November 22, 2005. You can examine a copy of this stipulation at the Clerk's office of the United States District Court for the Eastern District of Texas, 211 W. Ferguson, Tyler, TX 75702, during regular business hours.



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15. How Do I Get More Information?
 

For additional information, you may contact Epiq, the Claims Administrator, at 1-888-230-9850, or e-mail edssecurities@epiqsystems.com.



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DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE