Sierra Announces Acquisition.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 3, 1999--

Sierra Systems Group Inc. (TSE:SSG.) is pleased to announce that it has signed letters of intent to acquire 100 percent of Systems Interface Inc. and 49 percent of Donna Cona Inc., both of Ottawa, Ontario.

Under the terms of the agreement, Sierra will pay, on closing, approximately $6.3 million in a combination of cash and shares. The closing of the transaction is subject to receipt of regulatory approval, completion of formal documentation and completion of due diligence by Sierra.

About Systems Interface

Since its founding in 1980, Systems Interface (SI) has earned a reputation for award-winning solutions and top-notch technical support as a diversified systems integration company.

SI has been growing at an annual rate of 30 percent and is one of Microsoft's leading partners in Ottawa. SI was acknowledged by The Financial Post as one of Canada's Top Fifty emergent technology firms, and was identified by the Ontario government as an innovative growth firm.

The acquisition of SI strengthens Sierra's capacity to deliver services in a number of key areas. This includes practices in strategic business technology planning addressing the electronic service delivery marketplace, eCommerce and Web-based business intelligence systems development and support, and technology architecture, design, implementation and support. In addition, the acquisition will create significant presence for Sierra in eastern North America to pursue greater opportunities in both the private and public sectors.

SI President and founder, Mr. Sandy Foote, will become a Vice President with Sierra and the manager of Sierra's Ottawa branch. "I am very excited about the merger of our two companies," says Mr. Foote. "Together, we will provide a much broader range of services to our clients, and expand the career opportunities for our staff."

Even more critical, SI gives Sierra a 7x24 operational facility to provide full operations support and hosting services for Sierra's rapidly expanding North American eCommerce services. Mr. Grant Gisel, President and Chief Executive Officer of Sierra said, "Getting Sierra together with SI catapults our service ability in Ottawa and throughout North America. It dramatically extends our eCommerce solutions into operational delivery."

About Donna Cona

SI has also been committed to mentoring the information technology careers of Aboriginal people for more than a decade. In 1997, that commitment developed into a new aboriginal technology company named Donna Cona. Donna Cona is a joint venture between SI and Aboriginal Informatics Services, a company formed in 1983 by Mr. John Bernard, a member of New Brunswick's Madawaska Maliseet Band. Together, Mr. Bernard and Mr. Foote established a full service Aboriginal technology company. SI's established track record in the industry and Donna Cona's highly trained staff enabled the company to secure multi-million dollar contracts in its first year of operation.

Earlier this year, SI and Donna Cona made the news by designing and installing the technology infrastructure for the government of the new territory of Nunavut. This is the first satellite-based infrastructure in Canada and one of few in the world. The project is attracting international attention.

About Sierra

Sierra Systems Group Inc. is a leading Information Technology Management Consulting and Systems Integration company in North America. Sierra's clients include over 300 large and medium-sized public and private organizations, including Fortune 1000 companies. With 14 locations throughout Canada and the United States, its 800 plus employees help to enhance the competitive position of its clients through the implementation of information technology based business solutions.