CGI REPORTS STRONG GROWTH IN FIRST QUARTER FISCAL 2003

Click here to access the Q1 F2003 financial results

CGI Group Inc. (NYSE: GIB; TSX: GIB.A), a leading provider of end-to-end information technology and business processing services, today reported unaudited results for the quarter ended December 31, 2002. All figures are in Canadian dollars unless otherwise indicated.

First Quarter Financial Highlights

• Revenue of $589.0 million was 14.9% higher than revenue reported in the first quarter of fiscal 2002 and 3.0% higher than the fourth quarter. Year-over-year organic growth represented 12.2%.
• Net earnings increased 20.9% to $37.0 million from last year's first quarter net earnings, and were up 4.2% sequentially.
• Basic and diluted earnings per share of $0.10 were up over earnings per share of $0.08 reported in the first quarter of fiscal 2002 and $0.09 reported in the fourth quarter. The net earnings margin was up to 6.3%.
• Cash flow from operating activities was $30.1 million.
• The backlog of signed contracts as of December 31, 2002 was $10.7 billion with a weighted average remaining contract term of 7.3 years.
• The current pipeline of bids for large outsourcing contracts being reviewed by potential clients remains robust at $5 billion.

"Our strong first quarter results and initiatives announced in the second quarter position CGI for future growth," said Serge Godin, chairman and CEO. "Good organic growth in the quarter demonstrates our ongoing focus on executing on the fundamentals-- delivering quality services to our clients. Additionally, with the acquisitions made or announced in fiscal 2003, we further our goal towards becoming one of the top five pure-play IT and BPO services companies in the world."

First Quarter Results (See also: Q1 MD&A filed with Sedar & Edgar and available at www.cgi.com)
Revenue for the first quarter ended December 31, 2002 increased 14.9% to $589.0 million, from $512.5 million in the same quarter last year. The year-over-year organic growth of 12.2% was driven by a combination of client wins, renewals, and add-on projects from existing clients.

In the first quarter, revenue from long-term outsourcing contracts represented 74% of the Company's total revenue, including 15% from business processing services, while project oriented consulting and systems integration work represented 26%. Geographically, the mix of revenue was the same as last quarter, with clients in Canada representing 76% of revenue; clients in the US representing 18%; and all other regions, 6%. Revenue in CGI's targeted verticals during the first quarter was slightly more diversified compared to the fourth quarter with clients in the financial services sector representing 40% of revenue; while telecom represented 23%; manufacturing, retail and distribution clients, 14%; government clients, 12%; utilities and services, 8%; and healthcare, 3%.

Earnings before interest and income taxes (EBIT) was $60.7 million in the first quarter, up 15.6% over last year's first quarter EBIT of $52.6 million. The EBIT margin was 10.3% for the quarter, compared with 10.3% in last year's first quarter, and was affected by restructuring activities including severance costs related to the Company's operations in France.

Net earnings in the first quarter were up 20.9% to $37.0 million, compared to $30.6 million in the same quarter a year ago. Earnings per share increased to $0.10 for the quarter, compared with earnings per share of $0.08 reported in last year's first quarter. The net margin improved to 6.3%, compared with 6.0% in the first quarter of fiscal 2002. In addition to profitable growth of the business, a lower tax rate of 39.7%, down from 41.3% in last year's first quarter, contributed to higher net earnings.

CGI maintains a strong balance sheet and cash position, which together with bank lines are sufficient to support the Company's growth strategy and represent a competitive strength when proposing on outsourcing contracts. At December 31, 2002, CGI had cash and cash equivalents of $97.4 million and the total credit facility available was $414.1 million.

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

• Announced $722.6 million in new contract bookings, renewals and extensions including full IT outsourcing contract wins with US based Air Liquide America LP in Houston, TX, and with Frank Russell in Tacoma, WA.
• Completed the acquisition of INSpire Insurance Solutions (INSpire) in Forth Worth, TX, with annual revenue of approximately $41 million for approximately $8.9 million in cash.
• Announced a memorandum of understanding to acquire Underwriters Adjustment Bureau Ltd. (UAB), Canada's only "One-Stop-Risk-Shop", providing claims management, underwriting and actuarial services for (P&C) insurance industry with annual revenue of approximately $100 million, and announced a bid for the acquisition of all shares of COGNICASE Inc. (Cognicase), the second largest independent IT solutions provider in Canada with annual revenue of $500 million.

Significant Events since December 31, 2002
On January 8, 2003, CGI furthered its strategy to establish an end-to-end service offering and become the premier provider of BPO services to the property and casualty (P&C) insurance sector, with the closing of its acquisition of UAB. To fully leverage the talent and capabilities of CGI's BPO practice, following the integration of INSpire and UAB, the Company subsequently formed the Insurance Business Services unit focused entirely on growing its business process outsourcing services offering to the North American insurance industry. Through a combination of organic growth and acquisitions, CGI's business process outsourcing activities now represent approximately $600 million in annualized revenue, or 20% of total revenue.

On January 27, 2003, CGI successfully completed its offer for Cognicase with approximately 96.7% of the Cognicase shares having been deposited. CGI is already integrating these operations into its own using its proven integration processes.

Initiatives and Outlook
As a result of its acquisition of Cognicase, CGI is increasing its guidance for 2003 fiscal year revenue to a range of $2.8 and $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 contract contributing more than $100 million per year in revenue, and the effect of any new accounting rules.

Mr. Godin added, "We have many reasons to be confident about CGI's future. Our systematic frameworks and quality processes for integrating new members will help us drive future organic growth and margin efficiency on recent contract wins and acquisitions. Our joint venture in Innovapost, for example, is still in a transition phase and we expect the margins to continue to improve. The pipeline of $5 billion in outstanding proposals is very robust, with more qualified opportunities from US-based clients. As the leading provider of IT services in Canada, we will continue to consolidate the Canadian market as appropriate, but are still actively reviewing acquisition targets to build critical mass in the US and Europe. Our strong financial position, our unique global delivery model, and our deep client relationships give us confidence in our ability to deliver even stronger results going forward."

Quarterly Conference Call
A conference call for the investment community will be held today, January 28, at 9:00 am (Eastern Time). Participants may access the call by dialing 888-793-1722 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