CGI REPORTS SOLID GROWTH IN SECOND QUARTER FISCAL 2003

Click here to access the Q2 F2003 financial results

CGI Group Inc. (NYSE: GIB; TSX: GIB.A), a leading provider of end-to-end information technology ("IT") and business processing outsourcing ("BPO"), today reported unaudited results for the quarter ended March 31, 2003. All figures are in Canadian dollars unless otherwise indicated.

Second Quarter Financial Highlights

• Revenue of $736.1 million was 38.4% higher than revenue reported in the second quarter of fiscal 2002 and 25.0% higher than the first quarter. Year-over-year organic growth represented 7.5%.
• Net earnings increased 35.0% to $44.8 million from last year's second quarter net earnings, and were up 21.0% sequentially.
• Basic and diluted earnings per share of $0.11 were up over basic and diluted earnings per share of $0.09 reported in the second quarter of fiscal 2002 and $0.10 reported in the first quarter. The net earnings margin was 6.1%.
• CGI's business process outsourcing activities now represent close to 20% of total revenue.
• New contract bookings, renewals and extensions in the quarter were $614.4 million.
• The backlog of signed contracts as of March 31, 2003 was $11.2 billion with a weighted average remaining contract term of 7.5 years.
• The current pipeline of bids for large outsourcing contracts being reviewed by potential clients remains robust at $5 billion.

Serge Godin, CGI's chairman and CEO said, "We achieved all of the goals we set out to accomplish for the integration of five recent acquisitions and are pleased with the financial results in the quarter. With the most critical integration phases completed, we can now turn our full attention towards achieving strong organic growth going forward."

Second Quarter Results (See also: Q2 FY03 MD&A filed with Sedar & Edgar and available at www.cgi.com)
Revenue for the second quarter ended March 31, 2003 increased 38.4% to $736.1 million, from $531.9 million in the same quarter last year. The year-over-year organic growth of 7.5% was driven by a combination of client wins, renewals, and add-on projects from existing clients. External growth largely reflects the contribution of acquisitions made during the fiscal year, in particular INSpire, UAB and Cognicase.

Second quarter results include the contribution of approximately 90% of Cognicase's results beginning on January 14, 2003, and 100% of Cognicase's results beginning on February 20, 2003 when all remaining shares were acquired. CGI integrates acquisitions with its business units immediately and therefore, does not provide results that are specific to Cognicase.

In the second quarter, revenue from long-term outsourcing contracts represented 69% of the Company's total revenue, while project oriented systems integration and consulting ("SI&C") work represented 31%. Business Process Outsourcing services represented approximately 20% of total revenue. Geographically, clients in Canada represented 79% of revenue; clients in the US represented 17%; and clients in all other regions, 4%. Revenue from clients in CGI's targeted verticals during the second quarter reflects clients acquired from recent acquisitions. Clients in the financial services sector represented 40% of revenue; clients in the telecom sector represented 19%; manufacturing, retail and distribution clients, 17%; government clients, 13%; utilities and services, 9%; and healthcare, 2%.

Earnings before interest and income taxes ("EBIT") were $78.2 million in the second quarter, up 37.0% over last year's first quarter EBIT of $57.1 million. The EBIT margin was 10.6%, down slightly from 10.7% in last year's second quarter, but improved over the first quarter's EBIT margin of 10.3%. The sequential improvement in EBIT margin was a function of synergies realized from the acquisition of Cognicase, the continued focus on project and cost management and the receipt of performance bonuses on the completion of two projects. The EBIT improvement was partially offset by an increase in the depreciation of fixed assets and the amortization of contract costs and other long-term assets in the quarter.

Net earnings in the second quarter increased 35.0% to $44.8 million, compared to $33.2 million in the same quarter a year ago. Earnings per share increased to $0.11 for the quarter, compared with basic and diluted earnings per share of $0.09 reported in last year's second quarter. CGI's weighted average number of shares was up 4.6% compared with the second quarter of 2002 and up 4.2% sequentially. The net margin was 6.1%, down compared to 6.2% in the second quarter of fiscal 2002 and 6.3% in the first quarter, as a result of higher interest expenses in the quarter associated with debt incurred for the recent acquisitions of UAB and Cognicase.

Cash flow from operating activities required $16.8 million of cash this quarter, compared to $30.1 million of cash provided by operating activities in the first quarter 2003. This decrease is primarily attributable to a change in working capital items, including an increase in accounts receivable and a decrease in accounts payable and accrued liabilities. The increase in accounts receivable reflects the business acquired from Cognicase and UAB which had longer trade terms than CGI, and also because of the timing of a payment from a large outsourcing client. Additionally, the increase in accounts receivable reflects various tax credits that were recorded, but not yet received.

The decrease in accounts payable in the second quarter reflects the payment of severances and real estate costs associated with the acquisitions of Cognicase & UAB. The balance of the accounts payable decrease is related to assets acquired by the Company from a client at the end of the first quarter of fiscal 2003, but paid in the second quarter.

CGI maintains a strong balance sheet. At March 31, 2003, CGI had cash and cash equivalents of $58.1 million and the total credit facility available was $124.5 million.

Second Quarter Operating Highlights
CGI's growth prospects and solid backlog were improved during the quarter as a result of new contract wins, acquisitions, investments and operational initiatives. In the quarter, CGI:

• Announced $614.4 million in new contract bookings, renewals and extensions.
• Completed the acquisition of Cognicase for $347.3 million, representing a total cash consideration of $187.5 million, including $7.3 million in acquisition costs, a balance of purchase price of $18.3 million to be paid for acquisitions made by Cognicase prior to CGI's acquisition, and a total share consideration of 19,850,245 Class A Subordinate Shares of CGI.
• Successfully achieved all initial milestones for integrating the recent acquisitions of INSpire, UAB, Cognicase & Cornerstone including the transition of close to 5,000 new members into CGI.
• Formed within the Business Process Services business unit, the Insurance Business Services group, a leading end-to-end provider of BPO services to the North American property and casualty insurance industry.
• Improved the profitability of US operations and further positioned the business units to bid on IT & BPO outsourcing contracts and to grow their SI&C business when market conditions improve.

Initiatives and Outlook
CGI is reaffirming its guidance for 2003 fiscal year for revenue in the range of $2.8 to $3.0 billion and earnings per share in the range of $0.45 to $0.50. This guidance is based on information known today about market conditions and demand for its services and excludes the impact of other acquisitions or large outsourcing contracts contributing more than $100 million per year in revenue.

Mr. Godin added, "In Canada, where demand for all our business is strong, CGI further positioned itself as the leading provider of IT services by rapidly integrating recent acquisitions. We also continued to strengthen our presence and improve the profitability of our selected metro markets in the US in order to bid on and win new IT, BPS outsourcing and systems integration and consulting contracts. With initiatives accomplished during the quarter, we have substantially increased our breadth and depth of service offerings and IT solutions as well as our critical mass in North America. Now, we are focused on leveraging our enhanced capabilities to achieve organic growth and improve cash flows from our existing client base as well as generating new business."

Quarterly Conference Call
A conference call for the investment community will be held today, April 29, at 9:00 am (Eastern Time). Participants may access the call by dialing 888-575-8230 or through the Internet at www.cgi.com. Supporting slides for the call will also be available at www.cgi.com. For those unable to participate on the live call, a webcast and copy of the slides will be archived at www.cgi.com.

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 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 growth 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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8 pages of financial tables and notes accompany this release.

For more information:

CGI Investor Relations
Julie Creed
Vice-president, Investor Relations
(514) 841-3200 or (312) 201-4803

Ronald White
Director, Investor Relations
(514) 841-3230

CGI Media Relations
Eileen Murphy
Director, Media Relations
(514) 841-3430