Filed by Policy Management Systems Corporation
                           Pursuant to Rule 425 under the Securities Act of 1933
                                                     Commission File No. 1-10557



Contact:  Timothy V. Williams                   Charles T. Conway, Jr.
          Executive Vice President &            Director
          Chief Financial Officer               Corporate Communications
          (803) 333-5638                        (803)333-5348
          e-mail:timvwilliams@pmsc.com          e-mail:charlieconway@pmsc.com

          PMSC ANNOUNCES AGREEMENT WITH WELSH, CARSON, ANDERSON & STOWE
          -------------------------------------------------------------

               STOCKHOLDERS CAN RECEIVE $14 PER SHARE IN CASH FOR
                         75 TO 93 PERCENT OF THE SHARES

             WCAS COMMITS UP TO $604 MILLION IN THE RECAPITALIZATION

      NEW BUSINESS MODEL TO INCREASE FOCUS ON EBUSINESS AND BUSINESS PROCESS
                                   OUTSOURCING
       AS INSURANCE AND FINANCIAL SERVICES CUSTOMERS RAMP-UP INTERNET USE


     COLUMBIA,  S.C.,  MARCH  30, 2000  -- Policy Management Systems Corporation
(NYSE:PMS)  announced  today  that  it has signed a definitive agreement with an
affiliate  of Welsh, Carson, Anderson & Stowe ("WCAS"), a leading New York-based
private  investment  firm,  to  affect  a  recapitalization of the company.  The
company will continue to operate as a public company with its current management
and  under  its  new  name,  Mynd.  PMSC's  Board  of Directors has approved the
transaction.
     Under  the  terms  of  the  agreement,  WCAS has committed to provide up to
approximately  $604  million  of  capital, of which $75 million will be used for
investments  in  new strategic initiatives and other general corporate purposes.
Stockholders  will  have  the  right  to  elect to either retain their shares or
receive  $14  per share in cash consideration, subject to between 75% and 93% of
the  existing shares being converted to cash.  PMSC's existing stockholders will
retain  between  7%  to  25%  of  the  post-merger  common  stock.

     Larry  Wilson,  Chairman and Chief Executive Officer of PMSC, said, "We are
confident that this is the right step at this moment in the company's transition
to  a  new


business  model  with  a  focus on eBusiness. This investment will substantially
strengthen  our  capital  base and enable us to increase our focus on delivering
new,  flexible  solutions  to our insurance and financial services customers. We
believe  we  will  be  positioned  to  capitalize  on  the  substantial  growth
opportunities  in  our  markets."
     A  spokesman  for  WCAS  said,  "PMSC  is a company with a proven record of
technological  innovation,  a strong customer base and a commitment to adapt its
products  and  services  to  the  rapidly  developing  world  of  eBusiness. Our
investment reflects our strong belief that as an equity partner with a long-term
perspective, we will give PMSC the financial strength to complete its transition
to  a  new  business model and invest in innovative technologies. As the pace of
technological  change accelerates, we believe that, working together with PMSC's
management  and  employees,  we  will  create  substantial  growth."
     The  transaction  is  expected  to  be completed during the second or third
quarter  of  this  year  and  is subject to approval by PMSC's stockholders, the
receipt  of  financing  and other customary conditions.  The financing necessary
for  the  transaction  has  been  fully  committed  by  WCAS and an affiliate of
Donaldson,  Lufkin  &  Jenrette.  A  special meeting of PMSC's stockholders will
take  place  as  soon  as practical following approval of proxy materials by the
Securities  and  Exchange Commission.  PMSC's Board was advised by Credit Suisse
First  Boston.  WCAS  was  advised  by  Donaldson,  Lufkin  &  Jenrette.
            In  the  event  the  agreement  is  terminated  under  certain
circumstances, PMSC has agreed to pay WCAS a termination fee of $19 million plus
expenses  of  up  to  $5  million.
            WCAS, founded in 1979, is one of the leading private equity firms in
the  country,  with  assets  under  management  of  approximately $8 billion. It
focuses  exclusively on the information services, communications and health care
industries  and  invests  out  of  a  $3.2



billion  equity  fund  and a $1.4 billion subordinated debt fund. In addition to
this  investment,  WCAS  has  sponsored  a  number  of transactions with leading
information  services  companies  including  The Bisys Group Inc., SunGuard Data
Systems, Inc., Fiserv Inc., Amdocs Ltd., Bridge Information Systems, and Comdata
Holdings  Corporation.
    PMSC, headquartered in Columbia, S.C., is a leading provider of application
  software, related automation support and information services designed to meet
the needs of the global insurance and financial services industries. Information
    on PMSC and its products and services can be found on the World Wide Web at
 http://www.pmsc.com
                                               *************
     Statements about the proposed agreement are forward-looking statements that
involve risks and uncertainties. Among the factors that could cause actual
results to differ materially from those in the forward looking statements are:
the failure of the agreement to be consummated and those factors in PMSC's 1999
Annual Report on Form 10K and other reports and filings with the U.S. Securities
and Exchange Commission. PMSC disclaims any intention or obligation to update or
revise any forward looking statements.
     Investors are urged to read the Current Report on Form 8-K and proxy
statement/prospectus relating to the agreement and any other relevant documents
filed by PMSC with the Securities and Exchange Commission, when available,
because they will contain important information. Investors will be able to
obtain these documents, when available, for free from the SEC's web site,
www.sec.gov or from PMSC investor services at http://www.pmsc.com