LGS Group Inc.: Electronic Commerce, a Matter Of Survival For Quebec Companies

Business Wire, Nov 23, 1999

MONTREAL--(BUSINESS WIRE)--Nov. 23, 1999--

(NASDAQ:LGSA) (ME:LGS.A.)

In a speech today at the Board of Trade of Metropolitan Montreal, the president of LGS Group Inc., Raymond Lafontaine, made it clear that electronic commerce, particularly for business-to-business transactions, is an inescapable reality. If companies do not get on board now, their future will be in jeopardy.

Referring to statistics, Mr. Lafontaine traced the exponential growth of electronic business. Forrester Research forecasts that from 1998 to 2003, the volume of electronic commerce among businesses will grow to $1.3 trillion, or $1,300 billion, a 30-fold increase.

Considering these statistics, the situation in Quebec is worrisome as it is the province which is the least connected to the Net in Canada. In fact, small and medium-sized businesses in Quebec rank last among the ten Canadian provinces, with a connection rate of 43 %, compared to 61 % for the entire country.

"Quebec companies no longer have a choice," said Mr. Lafontaine, "since governments and major corporations like GE, GM and Ford are increasingly demanding that their suppliers do business via the Internet." Furthermore, electronic commerce is forcing companies to rethink their entire sales infrastructure. "The business model might have to undergo radical changes," Mr. Lafontaine said in his speech, giving as examples a variety of business solutions that are part and parcel of LGS Group's e-commerce plus business unit, designed specifically to assist businesses with the unprecedented upheaval in the exchange of goods and services.

LGS Group Inc. (LGSA at NASDAQ, LGS.A at ME) is one of Canada's largest information technology consulting firms specializing in management and systems integration. With annual sales of $230 million, LGS currently employs more than 2,100 professionals in 20 offices in Canada, the United States and Europe. The company is active in most areas of the private and public sectors.

This release may contain forward-looking statements that involve risks and uncertainties which might cause the actual results to differ materially from those projected. Potential risks and uncertainties include the ability to procure, properly price, retain, and successfully complete projects, the availability of technical personnel, and competition. These risks and uncertainties are discussed under the heading "Risk Management" in the Company's Annual Report.