To: Gilbert Drapeau who wrote (151 ) 9/2/1999 9:36:00 AM From: Gilbert Drapeau Respond to of 169
LGS Awarded Important Contracts in the United States SEPTEMBER 2, 1999 MONTREAL, QUEBEC--LGS Group Inc. (NASDAQ: LGSA) is pleased to announce that its new U.S. subsidiary, LGS Corporation, was recently awarded several significant contracts totaling approximately $2 million US for work in behalf of U.S. federal agencies. Currently, LGS' Washington office has over 55 consultants engaged in completing assignments for agencies of the U.S. federal government. In Washington, LGS Corporation has teamed with Unisys Corporation to execute a world-wide assignment for the U.S. Food and Drug Administration. This assignment draws on LGS' considerable expertise in the areas of risk assessment as well as its experience in the healthcare industry. LGS Corporation is also supporting Computer Sciences Corporation (CSC) in executing an assignment for the U.S. Agency for International Development (USAID) in Cairo, Egypt. In addition to assisting the USAID mission in Cairo, LGS personnel are involved in the development of plans for the telephone, healthcare and water treatment sectors in the Egyptian capital. Furthermore, in a significant win for LGS Corporation and for LGS' new ecommerce+ business unit, CSC was awarded a Blanket Purchase Agreement as a part of Safeguard, the new $250 M U.S. General Services Administration program to provide IT security services to all agencies of the US federal government. LGS Corporation is an important member of the CSC team and expects to provide IT security services under the Safeguard program. LGS Corporation recently submitted a proposal to the General Services Administration (GSA) to establish an authorized Federal Supply Service Information Schedule for IT services. When this proposal is approved, U.S. federal agencies will be able to purchase scheduled services directly from LGS Corporation. " We are delighted with the rapid development of our business in the United States," said LGS President Raymond Lafontaine. "Since the opening in April of our first U.S. office in Washington, D.C., our US staff has demonstrated that LGS will be a significant player in the important American IT market". LGS Group incorporated its U.S. subsidiary in October 1998. LGS Group Inc. shares were listed on the NASDAQ in November 1998 and the first U.S. office was opened in the spring of 1999. Approximately one third of the company's registered shareholders have an address in the U.S. LGS Group Inc. (LGSA at NASDAQ, LGS.A at ME) is one of Canada's largest information technology consulting firms specializing in management and systems integration. With annual sales of $230 million, LGS employs more than 2,200 professionals in 20 offices in Canada, the United States and Europe. The company is active in most areas of the private and public sectors. LGS Awarded Important Contracts in the United States This release may contain forward-looking statements that involve risks and uncertainties which might cause the actual results to differ materially from those projected. Potential risks and uncertainties include the ability to procure, properly price, retain, and successfully complete projects, the availability of technical personnel, and competition. These risks and uncertainties are discussed under the heading "Risk Management " in the Company's Annual Report.