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Cognicase Leader in Municipal Management Software

Cognicase Acquires Dynabec, 90% Owned by Industrial-Alliance Life Insurance Company

Quebec City,

News Release

COGNICASE Inc. (TSE: "COG", Nasdaq: "COGI"), a leading e-business services provider specializing in secure and scalable real-time transactional solutions, today announced the acquisition of privately held Dynabec Informatique Municipale Inc., a supplier of municipal management systems.

With this acquisition, COGNICASE consolidates its market share and becomes the undisputed Quebec market leader in municipal management solutions. COGNICASE´s clients in the municipal sector now number more than 500, including some of the province´s largest cities, for a market share of 80%.

"This transaction confirms our commitment to becoming the ASP solutions market leader and places us in a very good position to achieve our goal in the municipal sector. Now that we are the Quebec municipal market leaders, we will be extending our offering to large cities throughout Canada," declared COGNICASE President and CEO Ronald Brisebois.

"We are pleased to become a part of the COGNICASE family. This transaction will allow our clients to benefit from COGNICASE´s significant expertise and innovative technology." noted André Guindon, President of Dynabec.

"Industrial Alliance was looking for a partner that would allow Dynabec to continue growing. We are happy with this outcome, which ensures the company´s continuity," acknowledged Industrial Alliance President and CEO Yvon Charest.

About COGNICASE
COGNICASE is an innovative company specializing in the development and integration of real-time transactional solutions. Relying on its results-driven approach, software and technology, and its international Internet engineering and hosting centre, COGNICASE offers secure and scalable solutions that contribute to the success of its customers in the age of the new economy. The Company is active in several countries, including Canada, the United States, France, Spain, Belgium, the Netherlands and Australia.

About DYNABEC
Dynabec Informatique Municipale is a private company specializing in municipal management systems since 1984. It offers a complete product line of powerful municipal management software packages. Dynabec employs 65 people.

About Industrial Alliance
Industrial-Alliance Life Insurance Company is one of Canada´s fastest-growing and most profitable insurance companies. Founded in Quebec in 1892, the Company operates throughout Canada under three brand names–Industrial Alliance, National Life and IA Pacific Life. Industrial Alliance manages over $14 billion in assets. The company serves over 1.5 million Canadians and markets its products and services through multiple distribution channels, which together represent one of Canada´s largest distribution networks.

Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (US), which involve risks and uncertainties. Risk factors relating to this press release include the ability of COGNICASE to negotiate and finalize the definitive agreements related to the transaction described herein, the possible cancellation of such definitive agreements before the end of their expected duration, the estimated number of transactions being lower than expected and a possible reduction in the needs of COGNICASE’s customer for IT services over the period of such agreement.

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For more information, please contact:

COGNICASE Inc.
Michelle Courchesne
Executive Vice-President, Communications
(514) 228-8888

DYNABEC
André Guindon
President and Chief Executive Officer
(514) 337-4411, ext. 203

INDUSTRIAL ALLIANCE
Jacques Carrière
Vice-President, Investor Relations
(418) 684-5275