FOAMEX SELECTS EDS TO PROVIDE COMPREHENSIVE SET OF IT INFRASTRUCTURE SERVICES
 

EDS TO HELP FOAMEX UPGRADE ITS IT OPERATIONS
AND REDUCE COSTS WITH STANDARDIZED
PROCESSES AND SYSTEMS

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PLANO, Texas and LINWOOD, Pa. – EDS and Foamex International Inc. (NASDAQ: FMXI) today announced that Foamex will outsource its information technology (IT) function to EDS in a move designed to build a world-class technology infrastructure and reduce annual IT expenses by over $2 million annually for the next 5 years.

The largest flexible polyurethane and advanced polymer foam product manufacturer in North America, Foamex is the market leader in providing foam for carpeting, automobiles and consumer goods such as bedding and furniture, and also manufactures high-performance polymers for use in the industrial, aerospace, defense, electronics and computer industries.

Under the agreement, financial terms of which were not disclosed, EDS will provide and manage a common, leveraged IT infrastructure that will help standardize and streamline business processes, systems and operations across Foamex’s 59 North American facilities.

“Our IT systems are a key focus of our Transformation effort, and EDS has helped us identify savings and upgrade our IT service into world-class business processes with only minimal capital investment,” said Tom Chorman, Executive Vice President and Chief Financial and Administrative Officer of Foamex.  “EDS will allow us to use IT as a competitive business advantage while we focus on providing superior service to our clients and on new product development.”

Comprehensive Set of Services
EDS will manage Foamex’s local- and wide-area global network and midrange servers and provide desktop management services, including hardware, software and support to more than 1,500 desktops in Foamex’s North American facilities.  EDS will also develop and manage applications and implement an ERP system to help optimize supply chain management for Foamex.

“EDS has helped many clients transform the way they do business by optimizing their return on their IT investments,” said Pat Costa, president, U.S. Northeast Region for EDS Operations Solutions.  “EDS will apply its technology and global industry expertise to mobilize the people, resources, methodologies and delivery mechanisms for a scalable IT foundation that will provide Foamex a strong technology and business platform to support both their existing operations and future growth.”

About Foamex International, Inc.
Foamex, headquartered in Linwood, PA, is the world's leading producer of comfort cushioning for bedding, furniture, carpet cushion and automotive markets.  The Company also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries as well as filtration and acoustical applications for the home. For more information visit the Foamex web site at http://www.foamex.com.

About EDS
EDS, the leading global services company, provides strategy, implementation, business transformation and operational solutions for clients managing the business and technology complexities of the digital economy.  EDS brings together the world’s best technologies to address critical client business imperatives.  It helps clients eliminate boundaries, collaborate in new ways, establish their customers’ trust and continuously seek improvement.  EDS, with its subsidiaries, serves the world’s leading companies and governments in 60 countries.  EDS reported revenues of $21.5 billion in 2001.  The company’s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange.   Learn more at eds.com

The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release contains, and oral statements made from time to time by representatives of Foamex may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward-looking statements include, without limitation, those relating to completion of the operational restructuring as currently contemplated and the currently anticipated benefits of the restructuring, including those relating to the work force reductions, cost savings and restructuring charges from Project Transformation, the expected benefits of expanding the use of VPF technology, the Company's ability to introduce new products, enhance sales growth and margins and the outlook for the Company's financial performance. These forward-looking statements are affected by risks, uncertainties and assumptions that the Company makes about, among other things, its ability to implement customer selling price increases in response to higher raw material costs, raw material price increases, general economic conditions, conditions in the capital markets, the interest rate environment, the level of automotive production, carpet production, furniture and bedding production and housing starts, the completion of various restructuring/consolidation plans, the achievement of management’s business plans, its capital and debt structure (including various financial covenants), litigation and changes in environmental legislation and environmental conditions and other factors mentioned in the documents filed by the Company with the Securities and Exchange Commission.  While the Company believes that its assumptions regarding the foregoing matters are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that the Company's forward-looking statements will prove to be accurate. Additional information that could cause actual results to vary materially from the results anticipated may be found in the Company's most recent Form 10-K and other reports filed with the Securities and Exchange Commission. Readers should be aware that any forward-looking statement made in this press release or elsewhere by the Company speaks only as of the date on which it is made, and the Company disclaims any obligation or intent to update any of the factors listed above or forward-looking statements.

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