UCAR International Inc. (NYSE:UCR) and CGI (NYSE: GIB, TSE:GIB.A) today announced the signing of a ten-year contract valued at approximately US$75 million, whereby CGI becomes the delivery arm for UCAR's Global IT service requirements. Under the outsourcing components of this agreement, CGI will manage UCAR's data center services, networks, desktops, telecommunications and legacy systems.
"By creating this strategic alliance with CGI, we are transforming our IT service capability into an efficient, high quality enabler for UCAR's global supply chain initiatives, as well as contributing to our cost reduction objectives," said Gil Playford, chairman of UCAR. "The alliance supports our highest priority, which is return on invested capital (ROIC) and the delivery of shareholder value by providing cash proceeds from asset sales, reductions in SG&A expense and improved capital allocation. CGI is an excellent choice for us as they provide full end-to-end services around the world and flexibility in meeting our specific business needs," Playford also commented.
François Chassé, executive vice-president and general manager, USA for CGI added: "We are very pleased about this new partnership. Our high quality IT processes, strong J.D. Edwards expertise and international presence were important factors in UCAR's decision. This win highlights our ability to provide full outsourcing to large U.S. based multinational companies and positions us well for further expansion into the U.S. marketplace."
Effective April 16, 2001, UCAR's data and technology management operations will be handled by one of CGI's data centers. Approximately 30 of UCAR's U.S. based employees will be integrated into CGI's US operations as part of the initial phase of this agreement.
The contract also engages CGI for the design and implementation of UCAR's global information and advanced manufacturing and demand planning systems, using J.D. Edwards. The systems will span across 18 locations in Europe, North America, South America and South Africa. Implementation will commence following completion of the systems design phase, which will begin immediately and is expected to conclude by year end.
UCAR International Inc. is one of the world's largest manufacturers of high quality natural and synthetic graphite and carbon based products and services, providing energy solutions to customers in more than 80 countries. It has 15 manufacturing facilities in 8 countries and has the largest share of the free trading markets in all of its major product lines. Products include graphite and carbon electrodes and cathodes, and flexible graphite. Graphite electrodes are consumed primarily in the production of steel in electric arc furnaces, the steel making technology used by all "mini-mills," and for refining steel in ladle furnaces. Carbon electrodes are consumed in the manufacture of silicon metal. Cathodes are used in the production of aluminum. Flexible graphite is used in high temperature fluid sealing and gasket applications and is the basis for highly engineered products and solutions for applications in fuel cell, electronics and thermal management applications. UCAR's flexible graphite business is operated by its wholly owned subsidiary, Graftech Inc.. For additional information on UCAR, call 1-615-760-7700. For additional information on Graftech, call 1-216-529-3777.
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount of 10,000 professionals. CGI's order backlog totals approximately US$4.6 billion (CDN$7.0 billion) and its revenue stands at US$957 million (CDN$1.4 billion). CGI provides end-to-end IT services and business solutions to 2,500 clients in the United States, Canada and more than 20 countries around the world. CGI's shares are listed on the NYSE (GIB), as well as on the TSE (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 index as well as the S&P/TSE Canadian Information Technology index. Web site: www.cgi.ca.
For UCAR Investors: This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about such matters as informational technology systems design, implementation and services, supply chain performance, return on invested capital, shareholder value, capital allocation and cost reductions. We have no duty to update such statements. Actual future events and circumstances (including future performance, results and trends) could differ materially from those set forth in these statements due to various factors. These factors include the occurrence of unanticipated events or circumstances relating to strategic plans or programs or realignment, strategic alliance, supply chain, technology development, restructuring, joint venture, operating, capital, rationalization, integration or other projects, failure to integrate UCAR's IT business assets as contemplated by the contract, changes in the business, prospects, results of operations or financial conditions of UCAR , changes in our need for or availability of funds, changes in global or regional economic or competitive conditions, technological developments, and other risks and uncertainties, including those detailed in UCAR's filings with the SEC. The statements contained in this news release shall not be deemed to constitute an admission as to any liability in connection with any claim or lawsuit. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
For CGI Investors: 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, and other risks identified in Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s annual report or Form 40F filed with the US Securities & Exchange Commission and the Company's Annual Information Form filed with Canadian securities commissions. 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.
- 30 -
For more information:
Director, investor relations
Tel: (514) 841-3230
Director, media relations
Tel: (514) 841-3430
Tel: (615) 760-7720