Company News — Computer Modelling Group

www.canadait.com Friday, February 21, 2003

Computer Modelling Group Ltd. Announces Third Quarter FEBRUARY 21, 2003 - CALGARY, ALBERTA--CMG completed another highly successful quarter in the three months ended December 31, 2002. In the following report on CMG's financial results the term "operational earnings" has been used to more easily allow for the comparison of ongoing results between the reporting periods. The quarterly performance table provides the reconciliation from operational earnings to reported earnings for the respective periods.

The Company recorded quarterly revenues of $3,326,769, operational earnings of $739,284 ($0.10 per share) and cash flow from operations of $897,605 ($0.12 per share) for the three months ended December 31, 2002. These results compare to revenues of $2,634,888, operational earnings of $497,522 ($.07 per share) and cash flow from operations of $560,009 ($0.08 per share) for the comparative quarter ended December 31, 2001. CMG's earnings for the quarter ended December 31, 2002 are $458,784 ($0.06 per share) compared to $497,522 ($0.07 per share) last year.

CMG reported $8,766,242 in revenues, operational earnings of $1,742,913 ($0.24 per share) and cash flow from operations of $2,086,922 ($0.29 per share) for the nine months ended December 31, 2002. These results are consistently up in all categories from revenues of $7,092,834, operational earnings of $1,020,849 ($0.14 per share) and cash flow from operations of $1,130,226 ($0.15 per share) for the nine months ended December 31, 2001. CMG's earnings for the nine months ended December 31, 2002 are $2,362,413 ($0.33 per share) compared to $1,769,992 ($0.24 per share) for the nine months ended December 31, 2001.

"CMG recorded historical high quarterly software licensing revenues of $2.7 million, which is the best evidence of how CMG's products are perceived in the market place," said Kenneth Dedeluk, President and CEO. "It would not be prudent to expect software license sales to grow at this pace quarter over quarter as this last quarter contained a significant level of perpetual license sales. CMG, however, does expect sustainable year over year revenue growth as a result of the innovative and unique solutions in both advanced processes and technological advancements that are introduced in our software products."

CMG's generated $2,678,517 in software license sales for the quarter and $6,148,460 for the nine months ended December 31, 2002, up $1.1 million from the comparable nine months last year. Of these software license revenues, $4.2 million (69 percent) was generated from annuity/maintenance licensing in the nine months ended December 31, 2002, which is an increase of 19 percent from the $3.6 million (71 percent) generated in the comparative period last year. Licensing under perpetual sales was $1.9 million (31 percent) in the nine months ended December 31, 2002 compared to $1.4 million (29 percent) last year.

Consulting and contract research revenues were $2,619,829 for the nine months ended December 31, 2002, up $0.7 million from the $1,891,083 in revenues recorded in the comparable period last year. This business segment's profits for the quarter ended December 31, 2002 were impacted by the political unrest in Venezuela as CMG had geared up for committed work assignments. The third party consultants engaged for these projects were repatriated to Canada in December, thereby reducing the cost burdens on these assignments.

CMG's history of generating strong gross profits continued in this quarter. The gross profit margin for the nine months ended December 31, 2002 was 63 percent and CMG realized a gross profit of $5.5 million, up $1.1 million from the $4.4 million recorded in the nine months ended December 31, 2001. Total cash expenses for the nine months ended December 31, 2002 of $6.6 million were up $0.9 million from the comparative period levels. This was due to both a combination of planned increases in manpower and compensation as well as variable project related third-party contract costs.

"Based upon the continued unrest in Venezuela that has restricted CMG's ability to continue with its previously contracted consulting assignments and the time required to replace this work in other regions of the world, it is anticipated that near term consulting and contract research revenues will be lower than previous quarters," said Kenneth Dedeluk. "However, the economic conditions supporting a strong oil and gas industry activity level continue and it is anticipated that all business segments will provide strong revenues over the long term."

Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. Clients apply CMG's computer software technology to increase recovery from existing and future reserves. The Company, recognized by oil and gas companies worldwide as a leading developer of reservoir modelling software, has sales and technical support services based in Calgary, Houston, Beijing, London, and Caracas. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centres in 37 countries. CMG's common shares are listed on the TSX Venture Exchange and trade under the symbol CPU. For more information, please visit CMG's web site at www.cmgl.ca.

Statements in this release that are forward-looking involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company and new products and technological changes. The results or events predicted in these statements may differ materially from actual results or events. For more information regarding potential risks, please see the "Business Risks" section of the Company's most recent Annual Report and Annual Information Form filed with Canadian regulatory authorities.

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FOR FURTHER INFORMATION PLEASE CONTACT:

COMPUTER MODELLING GROUP LTD. Kenneth M. Dedeluk President & CEO (403) 531-1300 Email: ken.dedeluk@cmgl.ca

or

COMPUTER MODELLING GROUP LTD. Janet Taylor, C.A. Vice-President, Finance & CFO (403) 531-1300 Email: janet.taylor@cmgl.ca

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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