COGNICASE Announces Acquisition of Raymond Chabot Grant Thornton's Enterprise Resource Planning Software Business.

MONTREAL--(BUSINESS WIRE)--July 7, 1998-- Cognicase(NASDAQ:COGIF) (TSE:COG.)

- The agreement includes a 3-year outsourcing contract valued at over US$1.1 million -

COGNICASE Inc. (NASDAQ: COGIF) today announced that it has acquired the enterprise resource planning (ERP) software implementation business of Raymond Chabot Grant Thornton, one of Quebec's largest accounting and management consulting firms. The Company also announced that it has entered into a 3-year outsourcing agreement with Raymond Chabot Grant Thornton that is valued at over US$1.1 million.

With this transaction, COGNICASE will acquire an experienced 15- member team of ERP experts and has entered into a strategic marketing alliance that will enable COGNICASE to accelerate its penetration of the high-growth ERP market. COGNICASE expects that the agreement will generate a minimum of $US10.0 million of revenues over the next three years with significant growth potential. Under the terms of the agreement, Raymond Chabot Grant Thornton will promote COGNICASE's software implementation services to their customer base.

In addition, effective immediately, COGNICASE will assume full responsibility for most of Raymond Chabot Grant Thornton's information technology (IT) supporting the administrative functions under a 3-year outsourcing agreement estimated at over $US1.1 million.

"This agreement clearly demonstrates that our customers see COGNICASE as a preferred business partner and a leading player in the IT services market," commented Ronald Brisebois, President and Chief Executive Officer of COGNICASE. "The ERP market is the fastest growing IT segment with industry experts predicting a 40 percent increase in total revenue. This acquisition gives COGNICASE a running start in the software implementation field and expands our software expertise and our range of IT consulting services." He continued, "This agreement not only enhances our cross-selling opportunities across COGNICASE, but it will enable us to leverage the extensive marketing expertise of Quebec's leading consulting firm. This is truly a win-win partnership agreement."

Mr. Serge Saucier, President of Raymond Chabot Grant Thornton stated "COGNICASE is an industry leader and we have chosen them as our IT partner not only because of their strong track record in customer satisfaction, but also due to their commitment to being a comprehensive provider of IT software and services. COGNICASE's expertise and dedication will provide the ERP unit with the support necessary to realize the full potential of this business."

Concurrent with their IT alliance, the companies also jointly announced the resignation of Raymond Chabot Grant Thornton as auditors for COGNICASE, in line with securities regulations and CICA policies. They will maintain their current relationship in the areas of accounting, tax and management consulting services. COGNICASE will appoint new auditors in the very near term.

With the integration of this acquisition, COGNICASE now has more than 1,100 employees and a revenue run rate of over US$80 million. This compares with reported revenues of US$6.6 million for the fiscal year ended September 30, 1997.

COGNICASE Inc., founded in 1991, is an international provider of value-added software solutions and information technology (IT) consulting services. The Company's services encompass three core areas: Software Solutions including Year 2000 remediation and technology migration projects, Business IT services and Business IT partnerships, including outsourcing. 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.

Founded in 1948, Raymond Chabot Grant Thornton is the largest Quebec-based firm offering auditing, taxation, management consulting and turnaround services. The firm's professional expertise also covers financial consulting, organizational performance and strategy, human resources management, real-estate consulting and government affairs management. With fees for services of Cdn$32 million in 1997, offices in 60 cities and a team of over 1,300 employees, Raymond Chabot Grant Thornton is considered the Quebec leader in its sector of activity.

This new release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (US), which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in such statements. Certain factors that could cause actual results to differ materially from those discussed in such forward-looking statements include the ability of the Company to (i) successfully integrate business acquisitions (ii) take advantage of opportunities on the Year 2000 market in the short term and (iii) provide software maintenance and platform migration solutions outside the Year 2000 market, as well as the risks described in the Company's final prospectus dated October 2, 1997 filed with the SEC, the OSC and QSC in connection with its Public Offering, which factors are incorporated herein by reference.

COGNICASE press releases are available at: http://www.cdn-news.com

    CONTACT: COGNICASE
         6    Marc Lamy, 514/866-6161
         6    [e-mail]
         6    Web site: http://www.cognicase.ca
         6    or
         6    RAYMOND CHABOT GRANT THORNTON
         6    Jacques Gilbert, 514/878-2691
         6    [e-mail]