OTTAWA, September 20, 2001—Cognos Incorporated (Nasdaq: COGN; TSE: CSN) today announced results for its second quarter of fiscal year 2002, which ended August 31, 2001.

"Before turning to business matters, on behalf of all members of the Cognos family worldwide, I want to express our profound sorrow following the horrific events of last week," said Ron Zambonini, Cognos president and chief executive officer. "Our deepest sympathies and heartfelt prayers go out to the families of the victims."

Revenue for the quarter was $116.3 million, compared with revenue of $118.2 million for the same period last year and $108.0 million in the first quarter of fiscal 2002. Pretax income was $10.1 million, while net income was $7.1 million or 8 cents per share. This compares with pretax income of $22.9 million and net income of $16.5 million or 18 cents per share in the second quarter of the previous year.

Revenue for the six months ended August 31, 2001 was $224.3 million, compared with $226.9 million for the first six months of last fiscal year. Pretax income for the six-month period, excluding restructuring charges, was $7.1 million, and net income was $5.0 million or 6 cents per share. Including restructuring charges, pre-tax loss for the first six months of fiscal 2002 was $5.7 million, while net loss was $4.0 million or 5 cents per share. This compares with pretax income of $39.6 million and net income of $28.5 million or 31 cents per share in the first six months of fiscal 2001. All figures are stated in U.S. dollars and in accordance with U.S. GAAP.

"The results for the quarter slightly exceeded management's expectations," continued Mr. Zambonini. "In light of the uncertain economic conditions, we are pleased with the results, and remain confident in our leadership of this market. We are particularly encouraged by the significant commitment made to our enterprise business intelligence solution by many major organizations during the quarter."

Revenue was driven by the Company's business intelligence (BI) product family, which contributed more than 90 percent of total revenue. BI revenue in the quarter was $106.8 million, which was in line with the second quarter of last fiscal year and an increase of 8 percent from the previous quarter. BI license revenue in the quarter declined by 18 percent from the same period last year, but increased by 17 percent from the first quarter of this year.

The Company was awarded five contracts greater than $1 million from leading organizations during the quarter, including Boeing, BMW and Allianz, one of the world's largest insurance companies. BI orders greater than $50,000 increased sequentially by 26 percent compared with the first quarter of this fiscal year, while decreasing by six percent from the second quarter of last year. Other enterprise-scale transactions in the quarter were from such leading organizations as Verizon Wireless, TRW, numerous divisions of GE Corporation, McDonald's Restaurants, Pfizer, AT&T, Prudential, Pepsi-Cola, Dole Foods, DaimlerChrysler, Merck, Corning, Deutsche Post, Michelin, and Lyreco of France.

On the product front, Cognos' major new release of its enterprise business intelligence solution, Cognos Series 7, entered full beta trial during the quarter. "We are receiving extremely positive feedback from our Series 7 beta customers, who clearly see the value of a fully integrated, broad, and scalable BI solution," continued Mr. Zambonini. "And we recently released Cognos Finance 5.1 and shipped the beta version of our new planning product — Cognos Planning. Cognos is now the only vendor who can deliver true enterprise-class business intelligence that provides complete coverage of the entire enterprise decision cycle — planning & budgeting, reporting, analysis, and information delivery — in other words, enterprise-wide business performance management."

Cognos added to the strength of its balance sheet during the quarter. Cash flow was $18.7 million, net of $10.0 million for stock repurchase in the quarter. The Company had $258.1 million in cash, cash equivalents, and short-term investments as of the end of the quarter. Days sales outstanding for accounts receivable declined to 72 days, based on ending balances, a drop of 12 days from the previous quarter.

During the quarter, Tom Manley joined the Company as senior vice president, finance and administration and chief financial officer. Mr. Manley comes to Cognos with more than 18 years of experience as a financial professional with Nortel Networks.

The Company's Board of Directors today approved, subject to regulatory approval, a new share repurchase program for up to $50 million of the Company's common stock, beginning October 9, 2001, upon expiry of the current program.

Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

This press release contains forward-looking statements relating to, among other things, the Company's expectations concerning future revenues and earnings; the effect of the restructuring plan implemented in the first quarter of fiscal 2002 on results and strategic programs, including the effect of reduced expenses on results; the effect of the continuing uncertain economic environment on the Company's business and technology strategies, and the Company's ability to adapt its business models and strategies to the current economic environment; the Company's ability to deliver business intelligence solutions that respond to changing market requirements; the future prospects of the Company's current and future products, and the Company's ability to compete in an intensely competitive marketplace.

These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause future results to differ materially from those in the forward-looking statements. Factors that may cause such differences include, but are not limited to: the impact of global economic conditions on the Company's business and the Company's ability to implement timely and appropriate remedial measures; the Company's ability to select and implement appropriate business models and strategies; the Company's ability to maintain revenue growth or to anticipate a decline in revenue from any of its products or services; fluctuations in its quarterly and annual operating results based on historical patterns, which may cause its stock price to fluctuate or decline; rapid technological change and new product introductions and enhancements in the business intelligence software market; the Company's reliance on partners and other third party distribution channels to market and distribute its products; unauthorized use of the Company's intellectual property; claims by third parties that its software infringes their intellectual property; the Company's ability to compete in an intensely competitive marketplace; the risks inherent in international operations, such as currency exchange rate fluctuations; the Company's ability to identify, hire, train, motivate and retain highly qualified management and other key personnel; and the Company's ability to identify, pursue and complete acquisitions which could divert management attention and financial resources and not produce desired business results; as well as the risk factors discussed in the Company's most recent Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statement to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.

Cognos will present the Company's financial results for the second quarter fiscal year 2002 at 5:15 p.m. Eastern Time, today, September 20, 2001. The conference call may be accessed at 416-640-1907. The Webcast may be accessed at http://www.cognos.com/company/investor/events/fy02q2/index.html.