Cambridge Technology Partners Wins Injunction Against Former Employees for Violating Non-Recruitment Agreements.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 16, 2000

Court Orders Gen3 Executives To Stop Recruiting Cambridge's Employees

Case Now Goes To Trial; Cambridge Confident Of Outcome

Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ:CATP) (Cambridge), a global e-Solutions provider, today announced that the Middlesex Superior Court of the Commonwealth of Massachusetts has issued a preliminary injunction against former Cambridge employees, restraining them from soliciting, recruiting or hiring Cambridge employees.

The former employees who were enjoined all work for Gen3 Partners. They include Gen3's President and Chief Operating Officer, Mark Williams; Arthur Toscanini, Gen3's Chief Financial Officer; as well as Gen3's Director of Human Resources, its Chief Technology Officer and the leader of one of its branch offices. Gen3 Partners is a Boston-based professional services firm that was co-founded by Cambridge's former CEO, James K. Sims. The Court's injunction does not cover Sims.

In her ruling issued August 15th, Justice of the Superior Court Leila R. Kern said regarding Cambridge's allegation that the seven defendants violated the non-solicitation clauses of their employment agreements with Cambridge, "Clearly, (Cambridge) has shown that it is likely to succeed on the merits of this claim and that without an injunction against defendants, violations of the non-hire, non-solicitation clause of the employment agreement will continue to occur."

Cambridge General Counsel Joseph LaSala stated, "The decision by the Court is an important one for Cambridge that vindicates our company's right to enforce our agreements and protect our workforce from unlawful raiding."

"It is noteworthy that the filing of our lawsuit in April apparently caused the defendants to stop hiring our employees. Gen3 hired 17 former Cambridge employees before the filing and none since that time," Mr. LaSala added.

He continued, "We are pleased that the Court has seen fit to enjoin former Cambridge employees now at Gen3 from soliciting, recruiting or hiring current Cambridge employees."

The Court did not grant Cambridge's request for further preliminary injunctive relief against Sims and Gen3 that would have prevented Sims from working for Gen3. In declining to grant this portion of Cambridge's request, Judge Kern reasoned that the central legal question whether Gen3 is competing with Cambridge is one which will have to be decided when this case proceeds to trial on Cambridge's claims. She wrote, "A careful scrutiny of the context of (Cambridge's) Digital Strategy Practice against Gen3's offering indicates that it is equally probable as not that these two companies are competing."

On this aspect of the Court's ruling, Mr. LaSala commented, "While we sought other preliminary relief, we recognized from the outset the difficulties inherent in obtaining further relief at this preliminary stage. We are prepared to go to trial, and we are confident that we will prevail."

Mr. LaSala concluded, "Our goal in this litigation is to protect our company's most important assets - the intellectual capital and institutional goodwill we have developed because of the extraordinary talent and skill of our people. We have a duty to all of our 4,000 employees and to our shareholders to protect our company's legal rights aggressively by going to court, if necessary, to enforce the legal and contractual obligations owed to Cambridge."

In its lawsuit, filed April 5, 2000, Cambridge charges that Sims launched Gen3 Partners as a new company in direct competition with Cambridge while he was still a Cambridge employee and bound by the non-competition provision of his contract; that Toscanini violated the non-compete provision of his contract by teaming up with Sims at Gen3; and that Sims, Toscanini and other former Cambridge employees, including Gen3's President, targeted Cambridge employees for recruitment to Gen3 in violation of their legal and contractual obligations to Cambridge.

In addition to permanent injunctive relief, Cambridge seeks to recover damages resulting from lost business, disruption of its business and for compensation paid to Sims under his employment and severance agreements, as well as compensation paid to Toscanini under his severance agreement.

About Cambridge Technology Partners

Cambridge Technology Partners provides management consulting and systems integration services to transform its clients into e-Businesses. Working in collaboration with Global 1000, high-velocity middle market companies and dot-com companies, Cambridge combines a deep understanding of New Economy issues with integrated, end-to-end services, and a proven track record of shared risk and rapid, guaranteed delivery. Cambridge generated $628.1 million in revenue in 1999, with $243.3 million from its global e-Business solutions. Cambridge has approximately 4,000 employees and 53 offices worldwide. Cambridge is a Safeguard Scientifics (NYSE: SFE) partner company. Cambridge on the Web: http://www.ctp.com.