CGI reaches into North American markets with new Microsoft alliance

TORONTO, Sept. 10, 1999 — CGI today announced an enterprise alliance with Microsoft Corp. that will enable CGI to develop and deploy leading-edge solutions for the telecommunications, government and financial services markets across the United States and Canada. Under the three-year agreement, CGI will deliver best-of-breed, reliable solutions based on the Microsoft® enterprise platform in order to meet the changing needs of its clients. Based on the market potential of this agreement, CGI is targeting revenue growth of US$500 million over this three-year period.

“CGI is pleased to have signed this agreement with Microsoft, a world-class provider of software solutions,”
said Jean Brassard, president and COO of CGI.
“After investing heavily in year 2000 compliance, companies across North America are preparing to launch new IT solutions that utilize emerging technologies including e-commerce and Web-based applications. Teaming with Microsoft will allow CGI to maintain its leadership in Canada in these emerging technologies, while significantly enhancing its access to large U.S. clients. Combining CGI’s strong systems integration, consulting and outsourcing expertise with Microsoft’s well-established technology solutions provides for a powerful service offering.”

Under the alliance, Microsoft will provide CGI with software, development and support services, and CGI will invest in the training of at least 500 new Microsoft Certified Systems Engineers (MCSEs), Microsoft Certified Solution Developers (MCSDs) and Microsoft Certified Database Administrators (MCDBAs) to design, develop and implement business solutions. Additionally, Microsoft will provide Microsoft Consulting Services personnel to CGI for assistance in knowledge transfer, practice development and customer project support.

The agreement, which is nonexclusive for both companies, will further enhance CGI’s ability to serve the needs of clients that have selected the Microsoft platform as their technology of choice. The agreement addresses the tremendous growth Microsoft is experiencing in the enterprise space and the requirement for enterprise partners that can deliver rich solutions to their customers.

“It’s exciting for us to have CGI as an enterprise partner and to have our products complemented by its strong systems integration, consulting and outsourcing expertise,”
said Simon Witts, general manager of Microsoft Canada.
“We rely on strong partnerships to help us provide our enterprise partners with fully integrated, end-to-end information technology solutions to help them improve their businesses. CGI brings strong market knowledge, industry expertise and sales force capacity to help us better understand the needs of businesses in key market sectors such as insurance, banking, telecommunications and government.”

“This is an important alliance because it provides a great opportunity for us to reach out to our enterprise customers with CGI’s business solutions expertise in consulting, systems integration and outsourcing services,”
said Orlando Ayala, senior vice president of Microsoft Americas and South Pacific region.
“This North American alliance will focus on the emerging industries of telecommunications and financial services, and we are working with CGI to provide customers in these industries with leading-edge solutions.”

About CGI

Based on its annualized revenue run-rate of CDN$1.5 billion, CGI is the largest independent information technology consulting firm in Canada and the fifth largest in North America. CGI’s 10,000 professionals provide end-to-end IT services and business solutions to some 2,500 clients in Canada, the United States and 23 countries around the world. CGI’s shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A).

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries. Other product and company names herein may be trademarks of their respective owners.

Note to editors: For further information on CGI, visit . If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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 on Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.

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