Sierra Systems Group Inc.

Sierra Systems Group Inc.

May 23, 2006 13:00 ET

Sierra Systems Announces Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2006) - Sierra Systems Group Inc. (TSX:SSG) today announced that it has signed a letter of intent to acquire TkMC (Turnkey Management Consulting), a partnership headquartered in Edmonton, Alberta. TkMC has focused on providing independent, objective management advice and implementation support to public and private sector organizations. With offices in Alberta and British Columbia, TkMC has a complement of 28 staff and annual revenues of approximately $4.8 million.

The purchase price is expected to be paid in cash, and there will be no assumption of long-term debt. The transaction is expected to be accretive in fiscal 2006 and to close on May 31, 2006. The transaction is subject to due diligence.

Mr. Iraj Pourian, President and Chief Executive Officer of Sierra Systems, said, "Our two organizations share a very similar culture and provide complimentary services, particularly in the healthcare and government markets. Together, we will be a much more prominent player in these markets. This acquisition will also add significantly to our business consulting capabilities, a service we targeted for growth in our strategic plan. We are delighted to have these skilled resources added to our existing operations."

Mr. Don Schurman, Managing Partner and CEO of TkMC, and his leadership team are enthusiastic about the acquisition. "We are very excited about joining the Sierra Systems team," said Mr. Schurman. "Sierra Systems' culture and values, with their commitment to clients and staff, closely fits our vision and there is a high degree of alignment around our services and industry knowledge. We look forward to bringing increased depth and expertise to our client assignments and we will all benefit from a broad range of new opportunities."

About Sierra Systems

Since 1966, Sierra Systems Group Inc. (TSX:SSG) has been improving the operational performance of our clients by delivering superior information technology and business consulting services. Through our extensive experience in Business Consulting, Solutions Delivery, and Managed Services, Sierra Systems has emerged as a trusted advisor to many leading private and public sector organizations across North America. With offices in Austin, Calgary, Edmonton, Fredericton, Halifax, Hartford, Los Angeles, Olympia, Ottawa, Seattle, Toronto, Vancouver, Victoria, and Winnipeg, our consultants are never far from our clients. In Justice, Health, Government, and various other industries, Sierra Systems continues to win exciting engagements in the face of stiff competition. Visit us at

The statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Sierra Systems' actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, technological shifts, employee retention, fixed price contract delivery, competition, general economic conditions, foreign exchange and other risks detailed in the Company's Annual Report and other filings with Canadian securities regulatory authorities. We have no responsibility, nor do we intend, to update these forward-looking statements.

Contact Information