Cognos Announces Previous Delay in Filing 10-K in the United States also Delays Filing of Financial Statements and Other Filings in Canada

OTTAWA, ON and BURLINGTON, MA, May 29, 2006— Cognos (Nasdaq: COGN; TSX: CSN) today announced that it would be delaying the filing of its annual financial statements, management discussion and analysis related to those financial statements (related MD&A) and annual information form required to be filed today in Canada. This action arises from the same facts that caused the Company to delay filing its Annual Report on Form 10-K for the fiscal year ended February 28, 2006 (10-K) announced by Cognos on May 15, 2006. The delay of both U.S. and Canadian filings is based on an ongoing review by the Staff of the Division of Corporate Finance of the Securities and Exchange Commission (SEC) that may impact the manner in which the company allocates revenue. The 10-K contains Cognos’ annual financial statements, related MD&A, as well as other disclosure about Cognos. Cognos also files its 10-K, and selected portions of it, in Canada to satisfy its requirement to file annual financial statements, related MD&A and an annual information form, as permitted by Canadian securities laws.

As previously announced, the SEC Staff review relates primarily to the manner in which Cognos allocates revenue for post-contract customer support (PCS) in customer contracts having multiple elements such as PCS and license. In particular, the SEC Staff and Cognos have been discussing the company's practices for establishing vendor-specific objective evidence for the fair value of PCS and license components. Cognos continues to work to conclude this review with the SEC and to meet its filing requirements in the United States and Canada as soon as possible. While Cognos is working with the SEC to conclude this review, it cannot provide any assurances as to its outcome. Cognos' revenue recognition policy is described in the "Critical Accounting Estimates" section contained in Item 7 of its Annual Report on Form 10-K for the fiscal year ended February 28, 2005.

As a result of the late filing in Canada, each Canadian securities regulator is entitled to impose an issuer cease trade order on Cognos which would effectively prohibit trading by anyone in Cognos securities in Canada. To avoid that effect on all shareholders, the Canadian securities regulators have established a voluntary procedure which permits issuers to request a management cease trade order in place of an issuer cease trade order. A management cease trade order only prohibits certain directors, officers and other insiders from trading Cognos securities and it is customary for issuers to apply for it in circumstances such as these. Accordingly, Cognos will request today that the Ontario Securities Commission (OSC) issue a formal and temporary order that prohibits, effective immediately, certain directors, officers and other insiders of Cognos from trading in Cognos securities. Cognos anticipates that the securities regulators in other provinces will also issue similar orders with respect to residents of those jurisdictions.

The management cease trade order is a temporary solution of uncertain duration. Under the procedures of the OSC, if Cognos does not file its annual financial statements, related MD&A and annual information form on or before July 29, 2006, one or all of the securities regulators who have issued a temporary management cease trade order may (but are not required to) impose an issuer cease trade order against Cognos which would expand the cease trade order to cover the trading of all shares of Cognos in Canada. In accordance with the OSC guidelines pursuant to which management cease trade orders are issued, Cognos expects to provide updates on this matter every two (2) weeks by way of press release.

Safe Harbor For Forward-Looking Statements:
Certain statements made in this Press Release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 138.4(9) of the Ontario Securities Act.  Such forward-looking statements relate to, among other things, the impact of the SEC review, Cognos’ continuing work with the SEC to conclude this review and to meet its filing requirements in Canada and the United States, the issuance of similar cease trade orders in certain provinces, the imposition of an issuer cease trade order and Cognos’ provision of updates by way of press releases. These forward-looking statements are neither promises nor guarantees, but involve risks, factors and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Factors that may cause such differences include, but are not limited to: the outcome of the SEC review which Cognos is currently undergoing and any potential SEC inquiry, the impact of the implementation of new accounting pronouncements and interpretations, Cognos’ ability to select and implement appropriate business models, plans and strategies and to execute on them; fluctuations in Cognos’ quarterly and annual operating results; fluctuations in Cognos’ tax exposure; rules and pronouncements of foreign jurisdictions and their interpretation by foreign courts, tribunals, regulatory and similar bodies; as well as the risk factors discussed in Cognos’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, filed with the SEC and the Canadian Securities Administrators (“ CSA”), as well as other periodic reports filed with the Commission and the CSA. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except as required by law, Cognos disclaims any obligation to publicly update or revise any such statement to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.

About Cognos:
Cognos, the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.

Cognos brings together technology, analytical applications, best practices, and a broad network of partners to give customers a complete performance system. The Cognos performance system is an open and adaptive solution that leverages an organization’s ERP, packaged applications, and database investments. It gives customers the ability to answer the questions -- How are we doing? Why are we on or off track? What should we do about it? – and enables them to understand and monitor current performance while planning future business strategies.

Cognos serves more than 23,000 customers in more than 135 countries, and its top 100 enterprise customers consistently outperform market indexes. Cognos performance management solutions and services are also available from more than 3,000 worldwide partners and resellers. For more information, visit the Cognos Web site at http://www.cognos.com.