INDUSTRY

Cognos, the world leader in business intelligence (BI) and corporate performance management (CPM) solutions, today announced financial results for the first quarter of fiscal year 2006, ended May 31, 2005. Revenue for the first quarter was $200.1 million, an increase of 15 percent compared with revenue of $173.6 million in the first quarter of last fiscal year. License revenue was $71.1 million, an increase of 8 percent from $66.1 million for the same period of last fiscal year. Net income in the quarter was $23.8 million, an increase of 18 percent compared with $20.1 million in the first quarter of last fiscal year, resulting in diluted earnings per share of $0.25 in the first quarter of fiscal year 2006, versus $0.22 in the same period last fiscal year. Highlights of the Quarter * Continued solid performance from Cognos ReportNet and Cognos Planning, with license revenue growth of 25 percent and 24 percent, respectively, compared with the first quarter of last fiscal year; * 668 contracts greater than $50,000, an increase of 17 percent over the first quarter of last year; 104 contracts greater than $200,000, up 14 percent over last year; * Major customer contracts from such leading organizations as the Arkansas Department of Education, Australian Department of Defence, Behn Meyer, DaimlerChrysler Services, New York State Education Department, Pennsylvania Department of Public Welfare, PMI, Singapore Management University, SSA Global Technologies, Travelocity, U.S. Department of Navy, and WestJet; * Cognos 8 commenced first round of beta trials on schedule in the first quarter and advanced to general field beta trial in early June. "The fundamentals of the business are strong," said Cognos President and CEO Rob Ashe. "While revenue was below our expectation in the quarter, our performance in the key strategic areas of Cognos ReportNet and Enterprise Planning was solid, our sales pipeline is healthy, and our product offering is the strongest in the industry. I remain very confident in our position as we move forward." Cognos has repurchased $45 million worth of shares to date under the current Normal Course Issuer Bid, which expires on October 8th, 2005. The intention is to continue to repurchase shares when market conditions warrant, and the Company's board of directors yesterday approved additional purchases up to a total of $100 million under the current program. Business Outlook Management offers the following outlook for the second quarter of fiscal year 2006: * Revenue is expected to be in the range of $207 million to $215 million; * Diluted earnings per share are expected to be in the range of $0.28 to $0.31. Management offers the following outlook for the full fiscal year 2006, ending February 28, 2006: * Revenue is expected to be in the range of $915 million to $930 million; * Diluted earnings per share are expected to be in the range of $1.52 to $1.58. Cognos management will hold a webcast and conference call to present results for the first quarter of fiscal year 2006 and business outlook at 5:15 p.m. Eastern Time today, June 23, 2005. The webcast and an archive of the webcast may be accessed at http://www.cognos.com/company/investor/events/fy06q1/index.html. The conference call may be accessed at 416-640-1907. A replay of the conference call will be available until July 6, 2005 at 416-640-1917, passcode 21126553#.