Filed  by  Policy  Management  Systems  Corporation
Pursuant  to Rule 425 under the Securities Act of 1933 and deemed filed pursuant
to  Rule  14a-12  under  the  Sucurities  Exchange  Act  of  1934.
Subject  company:  Policy  Management  Systems  Corporation
Commission  File  No.  1-10557

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

                      POLICY MANAGEMENT SYSTEMS CORPORATION
                            RECEIVES LETTER FROM EDS


     COLUMBIA,  S.C.,  APRIL  28,  2000:  Policy  Management Systems Corporation
(NYSE:  PMS)  has  received  the  following  letter  today:

                                           Richard  H.  Brown
                                           Chairman  to  the  Board  and
                                           Chief  Executive  Officer
                                           EDS


The  Board  of  Directors  of
Policy  Management  Systems  Corporation
c/o  G.  Larry  Wilson
Chairman,  President  and  Chief  Executive  Officer
Policy  Management  Systems  Corporation
One  PMSC  Center
Blythewood,  South  Carolina  29016

Dear  Larry,

Since  I  joined  Electronic Data Systems Corporation in January of 1999 we have
taken  several  steps to continue to grow EDS as a leading global provider of IT
services.  Our  strategy  has  been to provide the full range of IT capabilities
(e.g.,  systems  integration,  consulting, outsourcing) across vertical industry
markets  with  local delivery capabilities. While the equity markets have viewed
this  focus  quite  favorably, we recognize that, under the right circumstances,
the  best  strategy may be to acquire companies that have strong capabilities in
particular  vertical  markets.

     EDS  has  a  keen  interest  in  the  insurance  market and sees tremendous
potential  in
                                    ( more )
leveraging our existing IT and outsourcing skills in this industry. Our internal
work  indicates  that  Policy  Management  Systems  Corporation offers excellent
capabilities  to  assist  us in capturing this opportunity. Accordingly, we have
followed  with  great  interest  your  recent  announcement  with Welsh, Carson,
Anderson  &  Stowe  and  believe  that  we  can  offer  your shareholders a more
compelling  proposal.

Based  on our preliminary review of publicly available information, our Board of
Directors has authorized us to propose a transaction in which we acquire 100% of
the  outstanding common stock of PMSC for $18 to $20 per share, in cash. Because
of our limited access to information, this range does not reflect the additional
synergy  value we may find in due diligence, which could allow us to improve our
proposal.

     Our  proposal  offers  several  advantages  over the transaction with Welsh
Carson:

- -     The  EDS  proposal offers your shareholders a premium of approximately 30%
to  40%  over  the  current  offer and approximately 50% to 67% over the current
trading  price;
- -     The  EDS  proposal  is  100%  for  cash;
- -     The  EDS  proposal  is  for  100%  of  the  outstanding  shares;
- -     The  EDS  proposal  is  not  subject  to  any  financing  conditions;  and
- -     The EDS proposal can be closed more quickly than the proposed Welsh Carson
transaction. Effected by means of a cash tender offer, it can be closed three to
four  months  prior  to  your  existing  deal.

We  appreciate  that,  in weighting our proposal, the obligation of the Board of
Directors  of PMSC is to examine it from the standpoint of the best interests of
PMSC's shareholders. I recognize as well, however, the additional responsibility
that  directors  quite properly feel toward employees, management, the community
and  customers  being served. With this in mind, I am pleased to provide comfort
on  all  of  these  points.

- -     The EDS proposal provides a broader platform and greater opportunities for
your  employees  and  management team. We recognize the substantial contribution
that  has been made by your employees and management team, and would intend that
all  employees and substantially the entire management team join the EDS family;
- -     The EDS proposal envisions maintaining PMSC's strong presence in the State
of  South  Carolina,  and increasing such presence by moving other complementary
EDS  operations  into  the  State;  and

                                    ( more )
- -     The  EDS  proposal, we are confident, will be favorably received by PMSC's
customers.

EDS  is  very  interested  in  PMSC  and  believes  that  our proposal should be
compelling to your shareholders and advisors. While at this time our proposal is
necessarily  preliminary and non-binding, we are prepared to proceed immediately
to  perform  due  diligence and to make a binding offer. We currently believe we
could  complete  our  due  diligence  and  the negotiation of mutually agreeable
definitive  agreements  in a period of ten days to two weeks. To facilitate this
process, we are prepared to use the Welsh, Carson, Anderson & Stowe documents as
a  basis  for  our  negotiations.

We  are excited about a transaction with PMSC and look forward to your response.
In  light of the importance of this matter, we ask that you respond to us by the
close  of  business  on  Tuesday,  May  2.

If  you  have  any  questions  regarding our proposal, please contact me or Todd
Marin  of  J.P.  Morgan,  who  we  have  engaged to assist us in this matter, at
212-648-7791.

Very  truly  yours,
Dick  Brown


The  Board  of  Directors has authorized the Company and its advisors to explore
this  proposal  with  EDS.
     On  March  30,  2000,  PMSC  signed a merger agreement with an affiliate of
Welsh,  Carson,  Anderson & Stowe which provides that stockholders will have the
right  to
elect to either retain their shares or to receive $14 per share in cash, subject
to  between  75%  and  93%  of  the  existing  shares  being  converted to cash.
     PMSC,  headquartered  in  Columbia,  S.C.,  is  the  leader  in  providing
enterprise  and electronic commerce application software, professional services,
and  outsourcing  designed to meet the needs of the global insurance and related
financial  services  industries.  On  January  21,  2000,  PMSC  announced it is
changing its name to Mynd. Information on PMSC and its products and services can
be  found  on  the  World  Wide  Web  at  http://www.pmsc.com.
                                      -30-
     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/A  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.

     PMSC  has  filed  a  preliminary proxy statement/prospectus relating to the
proposed  merger  with the Securities and Exchange Commission. PMSC will prepare
and  file  with  the  SEC a definitive proxy statement/prospectus. Investors are
urged to read the definitive proxy statement/prospectus, when available, as well
as other relevant documents filed by PMSC with the SEC because they will contain
important information. Investors will be able to obtain these documents for free
from  the  SEC's  website,  www.sec.gov,  or  from  PMSC  investor  services  at
www.pmsc.com.  Information about participants in the solicitation of proxies for
the  merger,  including  direct or indirect interests, by securities holdings or
otherwise,  is  included  in  the  preliminary  proxy  statement/prospectus.