OTTAWA, June 20, 2002—Cognos Incorporated (Nasdaq: COGN; TSE: CSN) today announced results for the Company's first quarter of fiscal year 2003, ended May 31, 2002. Revenue for the quarter was $120.1 million. This represents an increase of 11 percent compared with revenue of $108.0 million for the same period last year.

Net income for the first quarter of fiscal 2003 was $9.9 million or $0.11 per share. This compares with a net loss of $2.1 million, or $0.02 per share, excluding special charges, for the first quarter of fiscal 2002. Including special charges of $12.8 million in the first quarter of last year, the net loss in that quarter was $11.1 million or $0.13 per share.

All figures are stated in U.S. dollars.

Business intelligence (BI) license revenue achieved strong growth in the quarter, reaching $48.0 million. This was an increase of 16 percent compared with revenue of $41.4 million in the first quarter of the prior fiscal year. Total BI revenue was $111.6 million in the quarter, an increase of 13 percent compared with $98.7 million for the same period last year.

Cognos further strengthened its balance sheet during the quarter. Net cash flow was $23.7 million, resulting in the Company increasing its cash, cash equivalents, and short-term investments to $338.3 million at the end of the first quarter.

Highlights of the Quarter

• Four contracts greater than $1 million, equal to the all-time high for Q1;

• 42 contracts greater than $200,000 and 337 contracts greater than $50,000, an increase of 8 percent and 16 percent, respectively, over the first quarter of last year;

• Continued strong market acceptance of Cognos Series 7;

• Introduction of analytic applications suite for SAP, to complement existing J.D. Edwards and Oracle offerings;

"We are pleased with the results for the first quarter," said Cognos Chief Executive Officer Ron Zambonini. "The strong financial performance in a difficult environment demonstrates solid execution and underscores the success of our business model in winning the enterprise BI market.

"Major organizations throughout the world are selecting the Cognos offering as their strategic enterprise BI solution. The Company was awarded four contracts greater than $1 million in the first quarter, from the U.S. Army Reserve, Mattel, Hewitt Associates, and Starbucks. This equaled the all-time high for a first quarter, and demonstrated the continued penetration of Cognos Series 7 in enterprise-scale deployments. Other large contracts in the quarter were from a broad range of leading corporations and public sector organizations, including GE Power Systems, the University of Washington, Pfizer Inc., Toshiba, Gwinnett County School Board, Boehringer Ingelheim, and Omron Electronics.

"While customer purchasing behavior remains a challenge, we are confident that the value proposition of our enterprise BI solution and our prospects in the BI market are solid. And the Company's competitive position has never been stronger. We are determined to emerge from the current economic environment with a strengthened leadership position in the BI market," concluded Mr. Zambonini.

Cognos will hold a Webcast and conference call to present results for its first quarter of fiscal year 2003 at 5:15 p.m. Eastern Time, today, June 20, 2002. The Webcast may be accessed at http://www.cognos.com/company/investor/events/fy03q1/index.html. The conference call may be accessed at 416-640-4127.

This press release contains forward-looking statements, express or implied, relating to, among other things, the Company's expectations concerning: its future financial performance and continuing business momentum, its future growth opportunities, the success and soundness of the Company's business model and its sales, marketing and technology strategies; the trends and opportunities in the business intelligence ("BI") marketplace; the development, introduction, shipment and market acceptance of the Company's current and future products; and the Company's leadership position in the BI market.

These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Factors that may cause such differences include, but are not limited to: the Company's ability to develop and introduce new products and enhancements in the BI software market; 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 in the business intelligence software market; new product introductions and enhancements by competitors; the Company's ability to compete in an intensely competitive 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 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.