Computer Modelling Group Ltd.

Computer Modelling Group Ltd.

March 10, 2005 14:14 ET

Computer Modelling Group announces the signing of a Memorandum of Understanding with Shell for the joint development of reservoir simulation software


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: COMPUTER MODELLING GROUP LTD.

TSX SYMBOL: CMG

MARCH 10, 2005 - 14:14 ET

Computer Modelling Group announces the signing of a
Memorandum of Understanding with Shell for the joint
development of reservoir simulation software

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Computer Modelling
Group Ltd. (TSX:CMG) ("CMG") is pleased to announce the signing of a
Memorandum of Understanding with Shell International Exploration and
Production BV ("Shell") for a Shell/CMG Alliance ("Alliance") to enter
into mutually funded software development projects. The Memorandum of
Understanding contemplates that CMG would have the exclusive rights to
commercialize jointly developed software pursuant to this Alliance and
Shell would have unlimited access to the software developed for its
internal use.

"By combining our two companies' resources, we will effectively leverage
CMG's research and development efforts, as Shell will not only
contribute financial assistance but will provide intellectual property
know-how, operational experience and in-house technical research to the
Alliance" said Kenneth M. Dedeluk, President and CEO of CMG. "Our two
companies' common goal is to align our reservoir simulator technologies
and to jointly undertake the development of a new class of large-scale
full-physics advanced reservoir simulators by combining the latest
computing technology and comprehensive petroleum workflow techniques
with our significant knowledge in reservoir simulation." CMG anticipates
that this Alliance will initially have a minimal impact on its earnings
with the future potential being subject to the successful
commercialization of the Alliance projects.

Computer Modelling Group Ltd. is a computer software technology and
consulting company serving the oil and gas industry. CMG, 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 42 countries. CMG's common shares are listed on
the TSX and trade under the symbol CMG. For more information, please
visit CMG's web site at www.cmgl.ca.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Computer Modelling Group Ltd.
    Kenneth Dedeluk
    President and CEO
    (403) 531-1300
    Email: ken.dedeluk@cmgl.ca
    or
    Computer Modelling Group Ltd.
    Janet M. Taylor
    VP Finance and CFO
    (403) 531-1300
    Email: janet.taylor@cmgl.ca
    Website: www.cmgl.ca
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.