BCE Emergis Sets Course for 2002 and Beyond.

Business Editors

MONTREAL--(BUSINESS WIRE)--April 5, 2002

BCE Emergis Inc. (TSE:IFM)

-- Focus on major growth and earnings opportunities

-- Resolve to drive recurring revenue

-- Service offering and operating costs streamlined

-- Financial guidance set for 2002

BCE Emergis Inc. (TSE:IFM) today announced, following its March 21st revenue shortfall announcement, its plan to the focus on key growth areas, drive recurring revenue growth and streamline its service offerings and operating costs.

"Emergis has been successful in building a strong foundation of eBusiness solutions and an important base of customers," explained Brian Edwards, Vice Chairman and CEO of BCE Emergis. "Over the past quarter, our non-recurring revenue did not materialize but the quality of our customers and relevance of our solutions to their businesses continue to offer us tremendous opportunity and potential. Our plan is to focus on the major growth opportunities that this represents, streamline our service offering and cost structure and drive our recurring revenue growth. This plan will allow us to capitalize on our strengths and continue to grow our business."

Business outlook

While the business climate continues to be a challenging one in which to operate, the company's focus on recurring revenue and diminished reliance on non-recurring revenue should lead to greater financial visibility.

As previously announced, the Company expects first quarter total revenue to be in the $128 million to $138 million range, EBITDA in the negative $17 million to $22 million range, and a net loss between $25 million and $30 million, which does not include a restructuring charge.

For 2002, the Company is targeting total revenue between $575 million and $625 million with non-recurring revenue at approximately 10% of total revenue. U.S. revenue is targeted between 45% and 50% of total revenue. The EBITDA margin is targeted between 10-12% for 2002 and positive in the second quarter. EPS for the year is targeted at $0.05 to $0.10. These targets are before the effects of any restructuring charge.

In 2003, corporate objectives are to grow total revenue by approximately 15%-20% and to have an EBITDA margin of 20% to 25% and EPS of $0.50 to $ 0.75.

Active pursuit of significant growth opportunities

BCE Emergis will concentrate its focus on the major growth opportunities where there already exists a solid foundation and track record. It will actively seek to increase penetration in three growth areas: bill presentment services, payment solutions and claims processing.

To pursue these opportunities, Emergis will work through its existing blue-chip customers. The distribution channel potential offered by its U.S. and Canadian banking customers and Visa U.S.A in the bill presentment and payment areas stems from their extensive market coverage. In the Health area, Emergis will build from the strong base offered by its relationships with the leading health insurance companies and far-reaching provider networks. Finally, through its close relationship with Bell Canada, Emergis will leverage the most powerful distribution channel in Canada.

"BCE Emergis' eCommerce capabilities are a strategically important part of Bell Canada's ability to meet the needs of its business customers," added Jean C. Monty, Chairman of BCE Emergis.

Recurring revenue as foundation for continued growth

The recurring revenue base has always been and will continue to be a definitive and successful differentiator for the Company. All three business units -- eHealth, U.S. and Canada -- will strive to further strengthen existing customer relationships with the objective of driving implementation of Emergis solutions down through them to their business accounts. This cascading effect will drive additional recurring revenue.

While the business units will work with their existing customers to generate recurring revenue, Emergis, through a new business development group, will actively seek to sign agreements with new major customers as a means of adding to its strong customer foundation. While any new agreements are expected to contribute to non-recurring revenue, Emergis' reliance on the non-recurring revenue will be significantly reduced.

Streamlined service offering and operation costs

Concurrent with its focus on key areas of growth, the company has developed a plan to streamline its service offerings and reduce its operating cost structure.

An in-depth review of the Company's product suite has identified services that are considered non-core. These services, which the Company plans to exit, represent 40% of Emergis' total number of services, but only 5% (approximately $30-$35 million) of its annual revenue in 2001.

The plan also includes an overall reduction in personnel of approximately 550 people, or 20%. While the reduction of people will touch all areas of the organization, it will result in a more efficient allocation of resources to the key growth opportunities.

As a result of this cost reduction plan and possible asset impairments, the company will take a one-time restructuring charge in the second quarter.

BCE Emergis is a premier eBusiness service provider, strategically focusing on market leadership in the transaction-intensive eHealth and financial services sectors. By layering technologically advanced e-commerce services on existing Internet-based platforms, Emergis offers its customers increasing value in their e-commerce adoption and ever-increasing levels of sophisticated services. BCE Emergis' customers include leading North American banks and insurance companies. The Company's shares (TSE:IFM) are included in the TSE 100 composite index.

Please visit BCE Emergis at www.emergis.com for more information on the Company.

This news release contains forward-looking statements, which are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Factors which could cause actual results or events to differ materially from current expectations include, among other things: uncertainty as to whether BCE Emergis' strategies will yield the expected benefits and growth prospects, the current uncertainly in North American economic conditions, competitive conditions, the fluctuation in the currency exchange rates between the Canadian and U.S. dollar, BCE Emergis' ability to drive recurring revenue and expand its operations in the United States particularly in the ehealth and financial sectors, the extent of eCommerce adoption as well as the adoption rate by its customers of its services and the ability to integrate efficiently new acquisitions. For additional information with respect to certain of these and other factors, see the Annual Information Form and Annual Report (Management Discussion and Analysis) of the Company filed with Canadian securities commissions. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE REPRESENT BCE EMERGIS EXPECTATIONS AS AT APRIL 5, 2002 AND, ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER BCE EMERGIS DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.