COGNICASE Announces 10-Year Outsourcing Contract and Development of a Transaction Enabled Web Site in Financial Services Industry.

MONTREAL--(BUSINESS WIRE)--Jan. 21, 1999--COGNICASE Inc. (NASDAQ:COGIF) (TSE:COG) announces a long-term contract with an aggregate value estimated at CDN$5 million to manage information technology (IT) services for Groupe Option Retraite inc. and to develop a transaction enabled Web site in the brokerage business.

Under the 10-year outsourcing agreement signed today, COGNICASE will provide IT consulting services, network management, application development and maintenance, Web site development and statement processing services. Furthermore, applications developed jointly by the two partners will be marketed by COGNICASE to third parties in the financial services industry.

"We are pleased to be associated with an experienced IT partner who will apply leading-edge technology to continuously improve our customer service and develop new financial products" said Richard Dorval, president of Groupe Option Retraite.

Ronald Brisebois, president and chief executive officer of COGNICASE stated, "This agreement is a further demonstration of our outsourcing capabilities and ability to work in partnership with customers to ensure that their IT investment is fully aligned with their business objectives."

Groupe Option Retraite is a fully-licensed broker offering a complete line of financial services including RRSPs, financial planning and life insurance. The firm has 168 employees in nine offices in Quebec and one in Ontario. Groupe Option Retraite is a member of the Toronto Stock Exchange, Montreal Exchange and the Canadian Investor Protection Fund.

Founded in 1991, COGNICASE is an international provider of value- added information technology consulting services, solutions and software. The Company offers a full range of IT solutions including outsourcing, ERP implementation, application development, WEB/E-commerce development, network architecture and management and application development software for client/server and Web-based application, as well as software for automated software conversion and platform migration and IT out sourcing.

Through automation, reusability, and high quality IT resources, COGNICASE delivers reliable, cost-effective and timely solutions that generate added value for customers, employees, and shareholders. COGNICASE has more than 1,600 employees who serve customers from business offices in 15 cities in North America, Europe and Australia.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (US), including statements regarding the Company's estimates of the value of the contract with Groupe Option Retraite, which involve risks and uncertainties. As a result of a number of factors, including factors that the Company may not currently foresee. The Company's actual results could differ materially from those set forth in the forward-looking statements, including the risk of early termination of the contract and the ability of the Company and Groupe Option Retraite to agree on additional services to be rendered. Certain other factors that might cause the Company's actual results to differ materially from the forward-looking statements include the Company's ability to (i) successfully develop additional products and services and new applications for its existing products and services and otherwise respond to rapid changes in technology, (ii) successfully compete in its industry for customers and developers and other personnel with expertise in information technology, (iii) successfully identify and consummate acquisitions on favorable terms and integrate acquired businesses, and (iv) successfully manage its growth and changing business, as well as those factors set forth under the heading "Risk Factors" in its Final Prospectus dated October 2, 1997 as filed with the Securities and Exchange Commission.