CTG Announces Record Revenues and Profits in 1998.

BUFFALO, N.Y.--(BUSINESS WIRE)--Feb. 8, 1999--CTG (Computer Task Group)(NYSE: TSK), an international information technology (IT) services company, today announced fourth quarter 1998 revenue of $124.3 million, an increase of 12% as compared to the fourth quarter of 1997. Net income for the quarter was $6.9 million and diluted earnings per share (EPS) were $0.41, which represent respective increases of 39% and 41% over the fourth quarter of 1997.

For 1998, CTG reported revenues of $467.8 million, an increase of 15% over revenues for 1997. Net income and diluted EPS in 1998 were $24.0 million and $1.42, respectively, increases of 35% and 41% over calendar 1997.

"Our solid results have been fueled largely by our Key Client strategy and our commitment to delivering services our clients value," said CTG Chairman and Chief Executive Officer Gale S. Fitzgerald. "In 1998 we concentrated on the clients that we believed would be our best partners, and on developing business with them by providing high-value services."

On February 1, the company announced the signing of a definitive agreement to acquire the stock of Elumen Solutions, Inc. (Elumen) of Cincinnati, Ohio, the largest privately held consulting firm specializing in IT services for health care organizations. Elumen will combine with CTG's health care practice to form CTG HealthCare Solutions. With $44 million in combined health care revenues in 1998, CTG HealthCare Solutions will have approximately 250 health care client relationships and comprise more than 300 health care IT consultants.

"The Elumen Solutions acquisition offers an exciting opportunity to build on our commitment to growth in health care information technology services, one of CTG's five focus markets. The others are Business Application Management, Enterprise Resource Planning (ERP), Electronic Business (E-Business), and Supply Chain Management," Ms. Fitzgerald said. "Going forward, our goal is to further enhance our positions in these growing, high-impact sectors."

CTGhas been continuing its focus on attracting and retaining the best IT professionals. In 1998, Computerworld magazine named CTG one of the 100 best places to work in information systems for the third year in a row.

CTG (Computer Task Group)(NYSE: TSK) is a $468 million information technology (IT) services company that provides IT solutions to Fortune 500 and other companies through strategic partnerships. Backed by more than 30 years' experience, CTG manages IT services for some of the world's leading companies so they can focus on their core businesses and use IT, which has become vital to competitiveness, to excel in their markets. CTG's resources include its 55 offices in North America and Europe, more than 6,000 IT professionals, a suite of proprietary service methodologies, strong project management expertise, and a proactive recruiting approach, CTG-SmartSource.

Today's news release, along with CTG news releases for the past year, is available by fax at no charge by calling Corporate News on the Net at [phone]. Additional information about CTG is available on the World Wide Web at these addresses: http://www.ctg.com and http://www.businesswire.com/cnn/tsk.htm.

This document contains certain forward-looking statements concerning the Company's current expectations as to future growth. These statements are based upon a review of industry reports, current business conditions in the areas where the Company does business, the availability of qualified professional staff and other factors which involve risk and uncertainty. As such, actual results may differ materially in response to a change in such factors. Such forward-looking statements should be read in conjunction with the Company's disclosures set forth in the Company's 1997 Form 10-K and the Management's Discussion and Analysis section of the Company's 1997 annual report, which are incorporated by reference. -0-

               COMPUTER TASK GROUP, INCORPORATED (CTG)
                   Consolidated Statement of Income

             (amounts in thousands except per share data)

                     For the Quarter Ended     For the Year Ended
                        Dec. 31, Dec. 31,       Dec. 31, Dec. 31,
                         1998      1997 Change   1998      1997  Change

Total Revenue          $124,335  $111,416 12%  $467,838  $407,588  15%

Total Operating Income   11,360     8,317 37%    39,851    28,956  38%
 Percentage of Revenue      9.1%      7.5%          8.5%      7.1%

Net Other Income            371       136           906     1,312

Income Before Taxes      11,731     8,453 39%    40,757    30,268  35%
 Percentage of Revenue      9.4%      7.6%          8.7%      7.4%

Net Income              $ 6,918   $ 4,991 39%  $ 24,045  $ 17,862  35%
 Percentage of Revenue      5.6%      4.5%          5.1%      4.4%

Net Income Per Share:
     Basic                $0.42     $0.30 40%     $1.48     $1.07  38%
                          =====     =====         =====     =====
     Diluted              $0.41     $0.29 41%     $1.42     $1.01  41%
                          =====     =====         =====     =====
Weighted Average Shares
Outstanding:
    Basic                16,305    16,446        16,216    16,758
    Diluted              16,837    17,297        16,913    17,615


                COMPUTER TASK GROUP, INCORPORATED (CTG)
                      Consolidated Balance Sheet

                        (amounts in thousands)

               Dec. 31, Dec. 31,                      Dec. 31, Dec. 31,
                 1998     1997                          1998     1997
Current Assets:                   Current Liabilities:

Cash and Cash  $57,748  $25,033   Accounts Payable    $14,265  $ 9,207
 Equivalents
Accounts        73,932   60,176   Accrued Compensation 29,258   21,641
 Receivable, Net
Other Current    5,654    3,664   Income Taxes Payable  9,157    4,620
 Assets
                                  Other Current         9,793    6,303
                                   Liabilities

 Total Current 137,334   88,873     Total Current      62,473   41,771
   Assets                            Liabilities

Property and    13,146   12,445   Other Liabilities    10,887   10,644
 Equipment, Net

Other Assets     6,329    6,423   Shareholders' Equity 83,449   55,326

                                  Total Liabilities
 Total Assets $156,809 $107,741    and               $156,809 $107,741
                                    Shareholders'
                                     Equity