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ROYAL & SUNALLIANCE CANADA SELECTS CGI FOR SEVEN-YEAR IT SERVICES CONTRACT

Toronto, Ontario, January 31, 2006 -  

Royal & Sun Alliance Insurance Company of Canada, one of Canada's leading home, auto and business insurers, selected CGI Group Inc. (CGI), one of the largest information technology and business process services firms in the world, for a seven-year information technology (IT) services contract valued at $90 million. The contract is expected to be signed later this week.

CGI will be responsible for infrastructure management services including mainframe and mid-range equipment, and data storage and recovery. Royal & SunAlliance will continue to maintain and develop all of its broker and customer programs and services. The deal will reduce Royal & SunAlliance’s Canadian infrastructure management costs.

“We chose CGI for their proven service record and experience within the P&C insurance market. By transferring our infrastructure management services to CGI, we are streamlining our operating platform so that we can focus on growing our business by providing innovative products and services to our brokers and customers,” said Rowan Saunders, President and CEO of Royal & SunAlliance. Michael Roach, president and chief executive officer from CGI added: “We are excited about expanding our scope of services with Royal & SunAlliance and pleased to be collaborating with such a leading insurer. We look forward to building a long-term partnership as we find ways of helping our client further focus on their core business.”

About Royal & SunAlliance Canada
The Royal & SunAlliance Canada group includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc., Western Assurance Company, Ascentus Insurance Ltd. and is part of Royal & Sun Alliance Insurance Group plc. The Royal & SunAlliance Canada group employs more than 2,400 people and is represented by a large network of independent brokers across the country. In 2004, the Canadian Group wrote $1.4 billion in direct premiums with assets exceeding $4 billion. Internationally, Royal & Sun Alliance Insurance Group plc employs about 29,000 people and transacts business in more than 130 countries with assets of approximately $55 billion.

About CGI
Founded in 1976, CGI is the 8th largest independent IT services company in the world. CGI and its affiliated companies employ approximately 25,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in United States, Europe, India and Canada. CGI’s annual revenue is currently CDN$3.7 billion (US$3.0 billion) and at September 30, 2005, CGI’s order backlog was CDN$12.9 billion (US$11.1 billion). CGI’s shares are listed on the TSX (GIB.SV.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices.

CGI Forward- Looking Statements
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 2005 Annual Report or 2005 Form 40-F filed with the SEC, the Company’s 2005 Annual Information Form and in the Company’s MD&A for the fourth quarter of 2005 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 performance 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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CGI:
Investor relations
Lorne Gorber
Vice-president, investor relations
Lorne.gorber@cgi.com
(514) 841-3355

Ronald White
Director, investor relations
Ronald.white@cgi.com
(514) 841-3230

Media relations
Eileen Murphy
Director, media relations
Eileen.murphy@cgi.com
(514) 841-3430