KANAWHA SELECTS CGI FOR 10-YEAR IT OUTSOURCING CONTRACT WORTH US$41 MILLION
South Carolina-based health and life insurer, Kanawha Insurance Company, and CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB), a leading provider of information technology (IT) and business processing services, announced today the signing of a 10-year IT outsourcing contract valued at US$41 million. The contract includes the delivery of full outsourcing services which include infrastructure management, data center services as well as application maintenance and development. As part of this contract, 33 IT professionals will be joining CGI.
"To ensure optimal growth, our goal is to be able to better predict our IT costs and be ready for change by being flexible while at the same time have our systems run on best-in-class, robust infrastructure. In partnering with CGI and implementing their best practices, we are able to meet these business objectives," says Stanley D. Johnson, president and CEO for Kanawha.
Joseph Saliba, president, USA and India for CGI added: "We are pleased to welcome Kanawha as a new client as well as the IT professionals as new members to the CGI family. We feel confident that CGI's global delivery model coupled with our deep insurance industry knowledge, will enable us to deliver real value and tangible savings to Kanawha. We are excited to be a contributor to the success of Kanawha's business strategy."
Kanawha (ka-na'-wha) Insurance Company is one of the largest privately-owned life insurance companies in the Southeast. It is licensed as an insurer in 45 states and as a reinsurer in New York. Kanawha has had at least an "A- (Excellent)" rating by A.M. Best Company for 20 consecutive years and has been rated "A (Strong)" by Standard & Poor's. Long Term Care and Worksite products are currently distributed in more than 40 states and represent the prime strategic markets for Individual insurance, accounting for 90% of new sales. This marketing thrust is supported by extensive proprietary producer training and sales support mechanisms that take full advantage of new technology.
Kanawha HealthCare Solutions, Inc., a wholly-owned subsidiary, is one of the largest Third Party Administrators in the Southeast. Kanawha Marketing Group, Inc. was formed January 1, 2003 to distribute Kanawha products and other carriers' product lines not manufactured by Kanawha.
Since 1985, Kanawha's net worth has grown by 12% per year to over $166 million while assets under management now exceed $660 million. This growth has been a direct result of Kanawha's reputation for service to policyholders, customers and agents, a dedication that continues. To learn more visit www.kanawha.com.
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ 20,000 professionals. CGI's annualised revenue run-rate is currently CDN$2.8 billion (US$1.9 billion) and at September 30, 2003, CGI's order backlog was CDN$12.3 billion (US$9.1 billion). CGI provides end-to-end IT and business process services clients worldwide from offices in Canada, United States and Europe. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information Technology and Canadian MidCap Indices. Website: www.cgi.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. 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 authorities, as well as assumptions regarding the foregoing. The words "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", and similar expressions and variations thereof, identify certain of such forward-looking statements, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
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