Paris, October 17, 2002

FINAL FIRST HALF CONSOLIDATED RESULTS AND OUTLOOK

The Board of Directors of Cap Gemini S.A., which met on October 16, 2002 under the chairmanship of Serge Kampf, reviewed the consolidated and audited financial statements of the Cap Gemini Ernst & Young Group for the first half of 2002 and discussed the future outlook.

The first half results for 2002 are in line with the provisional indications given on July 25, 2002:

• Group revenue on June 30, 2002 is 3,733 million euros, a decrease of 15.9% at current exchange rates and perimeter compared to that of the first half of 2001 (4,440 million euros) and of 14.5% at constant exchange rates and perimeter.
• Consolidated operating income on June 30, 2002 is 10 million euros, that is 0.3% operating margin compared to 6.1% for the same period last year. This decrease is due to the fact that the utilization rate, expected at the beginning of the year to reach 73% after the end of the first quarter, remained below that target.
• Other revenue and expenses are -141 million euros compared to -53 million euros for the first half of 2001 and mainly include restructuring costs of 122 million euros, of which 111 million are related to first-half notified redundancies and 11 million mostly to the costs of closing offices. The headcount reductions launched in the first half (a total of 3,500 people) concern countries and sectors where business has been the most heavily impacted, in particular the telecom and financial services sectors.
• Depreciation of market share assets related to the Group's Telecom business in the United States amounts to an exceptional charge of 85 million euros.
• Group net income is -256 million euros compared to 111 million euros for the first half of 2001, after taking into account companies accounted for by the equity method, minority interests, goodwill amortization and depreciation of market share assets. On June 30, 2002, diluted net earnings per share are -2.04 euros compared to 0.88 euros on June 30, 2001.
• The Group's net cash position on June 30, 2002 is positive with 247 million euros.

Outlook

Since the beginning of the summer, it became clear that the business recovery initially expected for the second half of 2002 would not occur before 2003 at best, and the economic outlook has on the contrary deteriorated. Companies are favoring debt reduction over investment, which is directly affecting IT spending. In our industry, the price pressure in the whole of Europe is now reaching the levels which were already being felt on the North American market and in the United Kingdom from 2001 onwards.

Since it is probable that the sluggishness of the market will be long-lasting, the Board has confirmed that the recovery of the operating margin is the strategic priority and has asked the management to privilege the more profitable areas of our business.

In this context, the Group is now anticipating a second half revenue around 7% lower than for the first half (at constant exchange rates and perimeter) but maintains the margin objective set for this second half. In order to achieve this, it is accelerating the implementation of the measures announced last June as part of the LEAP! program: adjustment of delivery capacity (which has already brought the utilization rate up to 73% in the third quarter) and cost structure reduction.