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                              UNISYS CORPORATION
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               (Name of Registrant as Specified in Its Charter)

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March 25, 1997

Letter to Employees
Greenway Proposal

The following is a message from Jim Unruh, chairman and CEO:

If you own Unisys stock either directly or through the Unisys Savings
Plan or G-PEP programs, you will soon be receiving a copy of the 1996
Annual Report to Stockholders accompanied by a proxy statement and
card for use in voting on stockholder matters.

No doubt you receive so much correspondence in the mail that you might
be tempted to toss these materials in the trash. But I urge you to take the
time to read the annual report and proxy statement, and to use your
proxy card to vote. This is critical because one of the stockholder
proposals included in the proxy statement is potentially disruptive to our
business, our customer relationships, and to the financial progress we are

The proposal, described on page 8 of the proxy statement, suggests that
the company separate its computer systems/software business from its
two services businesses through a sale or spinoff. The proposal was
submitted by the investment group Greenway Partners, which made a
similar proposal in last year's proxy to split up the company into three
separate businesses. Last year's proposal was soundly defeated by
approximately 70% of the shares voted.

The Unisys Board of Directors is recommending against this year's
proposal and we need your support to defeat it convincingly. Although
the proposal is non-binding and cannot compel the Board of Directors to
act upon the recommendations, it is important to send the right message
to clients that we are focused on meeting their needs in an integrated

It is particularly important for participants in the Unisys Savings Plan to
take the time to vote. That's because if you own shares in the Unisys
Savings Plan and you do not return your signed proxy card by April 18,
the trustee (Fidelity) will vote your shares for you in the same proportion
as the votes it has received from participants who have sent in their cards.
In short, if only a minority of participants send in their cards, the final
vote will reflect their preferences - not necessarily yours.

Obviously, none of us, myself included, is satisfied by how the Unisys
stock is currently valued in the marketplace. But a separation of our
services and technology businesses is not the way to boost the stock
price. It would jeopardize relationships with our clients at a time when
more than 70% of our revenue comes from customers doing business
with all three of our business units. And it would destroy the synergy
among the groups, risking lower sales for all three.

A separation as outlined in this proposal would also eliminate a major
differentiator for Unisys - our ability to provide integrated information
management solutions to our clients. There is a growing need for
companies that can offer organizations such a single source for integrated
solutions. One analyst in a recent report wrote: "The frustration with
disintegrated client/server systems is causing renewed interest in
one-stop shopping." We are one of a select few companies in the
marketplace that can provide these kind of integrated solutions.

Finally, such a separation would disrupt the clear financial progress we
are making. The three-business structure we put in place a little over a
year ago is working. In 1996 our revenue and profitability improved each
quarter during the course of the year as the three groups focused their
businesses and their cost structures to become more competitive in their
respective markets. We significantly reduced our expenses and closed
with a fourth-quarter operating profit margin that was the highest in
three years. And our plans call for more financial progress and full-year
profitability in 1997. We are gaining momentum.

Financial analysts who cover our company and our industry agree that
this proposal is a bad idea. In a recent survey of 12 top-tier analysts
who cover the company and the industry, none of them supported the
proposal put forth by Greenway. One had this to say: "It doesn't make
sense to spin the businesses off today because they are too
interrelated. Spinning off the services today would not add value; on
the contrary, it would result in a decline in value."

Frankly, there is just no question - the Greenway proposal does not
work for Unisys clients, employees, or shareholders. The proposal
should receive your "NO" vote. A vote for the proposal for any other
reason would only be disruptive to client relationships and our
business. Support our entire Unisys team and vote "NO" on the Greenway

In the end, there is only one clear route to getting our stock price up
- - performance. As we deliver sustained growth in profitability and
revenue, improved stockholder value will follow. We set the foundation
in 1996.  Now we need to deliver. Let's all stay focused on the task
at hand and not let ourselves get distracted.

I and the rest of the management team appreciate your continued hard
work and dedication.