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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (13607)	11/19/1998 3:35:00 AM
From: Kerm Yerman	Read Replies (5) \| Respond to of 15196

SERVICE SECTOR / Computer Modelling Group Cuts Expenses by Over 30 Percent COMPUTER MODELLING GROUP LTD. TSE SYMBOL: CPU NOVEMBER 18, 1998 CALGARY, ALBERTA--Computer Modelling Group Ltd. (CMG) announced today a revised business strategy to reduce expenses and increase shareholder value. The Company is reducing annual operating expenses by over 30 percent, more than $3 million. All departments are affected by the expense reduction plan. The Company is selectively reducing the number of staff around the world and will reduce the compensation of employees by an average of six percent. Other reductions include a cut of 20 percent to Mr. Meyer's compensation and 10 percent to the Board of Directors' compensation. Frank Meyer, President and CEO, said the reductions will start immediately and will be completed during the third quarter, ending December 31. This will give the Company a full quarter of experience with the cost reductions prior to its next fiscal year, beginning April 1, 1999. "We are committed to our long-term goals of shareholder value and expanding our leading position in this high-growth marketplace. The industry downturn, however, has made it necessary for our Company, like many others, to undertake a comprehensive revision of business strategies toward meeting these long-term goals," Mr. Meyer said. "With our plan of selected expense reductions, we have ensured that we continue to be financially well-positioned to achieve our long-term goals through profitable growth." "Of foremost importance in the cost reduction plans has been the assurance that CMG will continue to provide both excellent support to our blue chip client base around the world and the leading edge product research and development that sets CMG's products apart from its competitors," Mr. Meyer said. "We will continue to produce and deliver the new software products the industry needs and is expecting from us, and we will do so within the resources of our restructured budget." Computer Modelling Group Ltd. is an oil and gas service company that applies advanced technology and support services to optimize recovery from existing and future reserves. Its software employs 3D visualization and animation to assist companies increase production from oil and gas reservoirs. Of existing known oil reserves, more than 70 percent remains in the ground, eluding conventional recovery techniques. CMG's software identifies "best-case" scenarios from analyses that incorporate data from conventional and 3D seismic, geological profiles, drilling logs, core samples, production records and other sources. The Company, recognized by oil and gas companies worldwide as a leading developer of reservoir modelling software, has sales and technical support services based in Calgary, Houston, Bakersfield, Beijing, London, Caracas and Sao Paulo. CMG is the world's leading supplier of advanced processes reservoir modelling software, with a blue chip client base covering 140 international oil companies and technology centers in 27 countries. The shares of Computer Modelling Group Ltd. are listed on the Toronto Stock Exchange and trade under the symbol CPU.