Burlington, Massachusetts, September 26, 2002—Cognos Incorporated (Nasdaq: COGN; TSX: CSN), the world leader in business intelligence (BI) solutions, today announced results for its second quarter of fiscal year 2003, ended August 31, 2002.

Revenue for the quarter was $129.1 million. This represents an increase of 11 percent compared with revenue of $116.3 million for the same period last year. Net income for the second quarter of fiscal 2003 was $13.7 million or $0.15 per share, compared with $7.1 million or $0.08 per share for the second quarter of last year.

Revenue for the six months ended August 31, 2002 was $249.2 million, an increase of 11 percent compared with revenue of $224.3 million for the first six months of last fiscal year. Net income for the first six months of this year was $23.7 million or $0.26 per share. This compares to net income of $5.0 million or $0.06 per share, excluding restructuring charges, or a net loss of $4.0 million or $0.05 per share, including restructuring charges, in the first six months of last year.

Business intelligence revenue achieved strong growth in the quarter, reaching $120.6 million. This was an increase of 13 percent compared with BI revenue of $106.8 million in the second quarter of last year. BI license revenue increased 10 percent to $53.0 million, compared with $48.3 million for the same period last year. (All figures are stated in U.S. dollars.)

Highlights of the Quarter

• Seven contracts greater than $1 million, an all-time high for the second quarter

• Contracts greater than $200,000 increased 43 percent to 67, compared with the second quarter of last year; contracts greater than $50,000 increased 11 percent to 405

• Continued strong market acceptance for Series 7 and accelerating business momentum for analytic applications

• Expanded and strengthened partner network: PwC Consulting, Manugistics, PeopleSoft, Cap Gemini Ernst & Young

• Positive customer response to Corporate Performance Management; expected record registration of over 10,000 users for Cognos Enterprise 2002 user days

As of August 31, 2002, the Company had $331.3 million in cash, cash equivalents, and short-term investments. Days sales outstanding for accounts receivable declined to 59 days, based on ending balances, compared with 72 days in the second quarter of last year.

"The Company's strong performance in a difficult environment demonstrates solid execution and underscores the strength of our business model, vision, and direction," stated Cognos Chief Executive Officer Ron Zambonini. "We extended our leadership in the enterprise BI market, and are well positioned to deliver on our vision of Corporate Performance Management.

"Major organizations throughout the world continue to make significant commitments to the Cognos enterprise BI solution. Enterprise-scale transactions in the quarter were from leading organizations representing a breadth of industries, including Amgen, Amoco, AT&T, Austrian Airlines, Campbell Soup Company, Dow Jones & Company, Electrolux, GE Capital, the Naval Air Systems Command, Raytheon, Standard Life, Sun Trust Bank, the U.S. Air Force, Verizon Communications, and Walt Disney Company.

"The outlook is positive," concluded Mr. Zambonini. "While the purchasing environment remains challenging, our customers recognize the distinct value of the Cognos enterprise BI solution. Our unique strength in R&D is driving the strongest new product cycle in the BI industry. We have great new products in the development pipeline, including a powerful new collaborative scorecarding solution. Our competitive position continues to grow stronger."

Business Outlook

Management offers the following outlook for the third quarter of fiscal 2003, ending November 30, 2002:

• Revenue is expected to be around $138 million;

• Diluted earnings per share are expected to be around $0.19.

Management offers the following outlook for the full fiscal year 2003, ending February 28, 2003:

• Revenue is expected to be in the range of $542 million to $548 million;

• Diluted earnings per share are expected to be in the range of $0.71 to $0.73.

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, business outlook and business momentum; the soundness of the Company's business model 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 demand for 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 2003 at 5:15 p.m. Eastern Time, today, September 26, 2002. The conference call may be accessed at 416-640-1907. The Webcast may be accessed at http://www.cognos.com/company/investor/events/fy03q2/index.html.