OVERLAND PARK, Kan. -- Sprint (NYSE: FON - News, PCS - News) today announced separate contracts with IBM Global Services and EDS to provide application development and maintenance support for selected software systems.

"Our agreements with EDS and IBM provide Sprint accelerated access to world-class capabilities and technology in a more flexible and cost-effective manner," said Michael W. Stout, chief information officer, Sprint. "By moving selected software application development and maintenance functions to these suppliers, Sprint can focus on its core telecommunications business, while ensuring customers receive unparalleled quality of service."

Over the five-year terms of the contracts, Sprint expects to reduce costs associated with the selected applications by $150 million.

"Sprint will benefit from EDS' global leadership in the applications management arena, with more than one million applications supported for our global clients," said Dan Zadorozny, vice president, EDS Applications Delivery. "We plan to leverage our expertise with the world's leading telecommunications companies and our 12 years of supporting applications in a global environment to help Sprint achieve cost savings and focus on its core business."

"This represents a significant opportunity for Sprint to maximize its ability to address the rapidly changing telecommunications marketplace," said Dean Douglas, vice president, telecommunications industry, IBM Global Services. "IBM is sharing experience learned from modernizing and transforming its own applications, as well as applications for other clients. Sprint will benefit from IBM's knowledge and experience in managing telecommunications application portfolios."

IBM and EDS will immediately begin working with Sprint to transition the selected applications. Sprint will continue to actively manage and monitor the selected systems and applications for development and compliance processes.

Sprint Corp.

IBM Global Services

Electronic Data Systems Corp. (EDS)