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CGI and IBM Canada Announce Major Enterprise Software Agreement


Montreal - 14 Jan 1999: - CGI today announced that in order to cost-effectively support its customers using IBM technology, it has signed a major enterprise software agreement with IBM Canada Ltd. This agreement will provide CGI's clients with effective solutions and access to a broad range of IBM's strategic software products. It will also allow CGI to streamline costs related to its outsourcing services and increase its competitiveness.

This five-year agreement provides CGI with attractive terms on IBM software products valued at CDN$125 million (US$ 80 million).

"CGI is pleased to have signed this agreement with a world-class company such as IBM. This will provide CGI with software that meets its clients' changing needs while allowing us to continue building our suite of end-to-end business solutions," said Jean Brassard, CGI's President and COO.

John Wetmore, President and CEO, IBM Canada Ltd, added that: "This is a significant win for IBM Canada and we are gratified that CGI has selected IBM for its software needs. We look forward to working with CGI and providing them with leading-edge e-business solutions in the years ahead."

This agreement covers IBM's strategic Software portfolio across a variety of platforms such as S/390, AS/400 and RS/6000 including: groupware (Lotus Domino), enterprise IT management (Tivoli), data management (DB2) network and security products (Personal Communications, IBM Firewall), application development tools (VisualAge) and Web application servers (Websphere), transaction and messaging software (CICS, MQSeries) and e-business software solutions (Net.Commerce, IBM Payment Suite). The new agreement will enable IBM to support CGI in developing new software applications and software offerings which CGI can provide to its clients.

CGI is the largest independent information technology services provider in Canada and the sixth largest in North America, based on annual sales of CDN$1.3 billion. Its backlog currently stands at CDN$6.5 billion. CGI has 8,000 professionals and provides a complete range of information technology services and business solutions to approximately 2,000 clients in Canada, the United States and twenty countries around the world. CGI shares are listed on the New York Stock Exchange (GIB), as well as the Toronto and Montreal Stock Exchanges (GIB.A). On the Toronto Stock Exchange, CGI shares are listed on the TSE 300 composite index. CGI's website is: www.cgi.ca.

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM Software offers the widest range of applications, middleware and operating systems for all types of computing platforms, allowing customers to take full advantage of the new era of e-business. IBM offers complete information about the company, its products, services and technology to Internet users throughout the World Wide Web. The IBM home page is located at http://www.ibm.com">http://www.ibm.com.

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All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the company, that do not directly and exclusively relate to historical facts, constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.

This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report.

Contact(s) information

Jay Cadmus
IBM
919-543-4299
jcadmus@us.ibm.com

Ronald White
CGI
514-841-3200

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