CANADA POST SELECTS CGI TO NEGOTIATE THE CREATION OF A NEW INFORMATION TECHNOLOGY SERVICES COMPANY
CGI Group (CGI) (NYSE: GIB, TSE:GIB.A), today announced that it has been selected by Canada Post to enter into negotiations for the creation of a jointly owned information technology (IT) services company. It is planned that the new firm will provide IT services, including e-business solutions, to the Canada Post group of companies, including Purolator Courier Limited and Progistix Solutions, as well as to other postal organizations worldwide. Annual revenue of the newly created firm is expected to be over CDN$200 million.
Through this new firm, the Canada Post group of companies will have access to world-class IT services at a more competitive cost thus allowing them to further leverage the power of IT for competitive advantage. The firm will lead in the development and integration of IT-enabled business solutions, including e-business solutions, geared for not only the Canada Post group of companies' customers, but also for their employees and their work environment.
"We are extremely excited and proud to be selected for this next step on this important venture," said Serge Godin, chairman and chief executive officer of CGI. "We are also pleased about entering a new and exciting sector. We will commit the necessary financial, technological and human resources to ensure the success and growth of the new firm. We are confident that together, integrating our respective talents, we can grow postal solutions to a higher level and in doing so become a leading-edge provider on the international postal scene."
"In the fast paced world of e-commerce, the Canada Post group of companies must be able to rely on supporting information technology services and management capabilities that reflect state-of-the-art technology and best practices," said Philippe L. Lemay, Canada Post's executive vice-president, business development. "This takes us a step closer to creating a flexible, customer-focused, world-class information technology services provider to meet this requirement."
Founded in 1976, CGI is the fourth largest independent information technology services firm in North America, based on its headcount of more than 13,000 professionals. CGI's annualized revenue run-rate totals US$1.3 billion (CDN$2.0 billion). CGI's order backlog currently totals US$5.7 billion (CDN$8.8 billion). CGI provides end-to-end IT services and business solutions to more than 3,000 clients in the United States, Canada, the United Kingdom, France, India, Japan, and Australia from more than 60 offices in more than 20 countries. CGI's shares are listed on the NYSE (GIB) and the TSE (GIB.A). They are included in the TSE 300 Composite Index as well as the S&P/TSE Canadian Information Technology and Canadian MidCap Indices. Website: www.cgi.ca.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent CGI Group Inc.'s intentions, plans, expectations, and beliefs, and are subject to risks, uncertainties, and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements.
These factors include and are not restricted to the timing and size of contracts, acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly-evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s Annual Report or Form 40-F filed with the SEC, the Company's Annual Information Form filed with the Canadian securities commissions, on the Registration Statement on Form F-4 filed with the SEC in connection with the acquisition of IMRglobal and with the Forms 10-K and 10-Q of IMRglobal filed with the SEC for the periods ended December 31, 2000 and March 31, 2001 respectively. All of the risk factors included in these filed documents are included here by reference. CGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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