Exhibit 99

COGNOS INCORPORATEDCONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS(US$000s except share amounts, CDN GAAP)

(Unaudited)

|                                             | Three months ended

August 31, | Six months ended

August 31,
|-------------------------------------------- | ------------------------------ | ----------------------------
|                                            
|                                             | 2002                           | 2001                        
|                                            
|Revenue                                      |                                |                             
|Product license                              | $ 55,039                       | $ 50,617                    
|Product support                              | 51,237                         | 42,584                      
|Services                                     | 22,828                         | 23,112                      
|                                            
|Total revenue                                | 129,104                        | 116,313                     
|                                            
|Operating expenses                           |                                |                             
|Cost of product license                      | 714                            | 962                         
|Cost of product support                      | 5,029                          | 3,862                       
|Selling, general, and administrative         | 87, 131                        | 87,231                      
|Research and development                     | 19,029                         | 18,423                      
|Investment tax credits                       | (1,331)                        | (1,289)                     
|Special charges                              | -                              | -                           
|                                            
|Total operating expenses                     | 110,572                        | 109,189                     
|                                            
|Operating income (loss)                      | 18,532                         | 7,124                       
|Interest expense                             | (185)                          | (85)                        
|Interest income                              | 1,619                          | 2,408                       
|                                            
|Income (loss) before taxes                   | 19,966                         | 9,447                       
|Income tax provision (benefit)               | 7,195                          | 3,561                       
|                                            
|Net income (loss)                            | $12,771                        | $  5,886                    
|Retained earnings at beginning of the period | 163,583                        | 163,625                     
|Repurchase of shares                         | (2,830)                        | (8,999)                     
|                                            
|Retained earnings at end of the period       | $173,524                       | $160,512                    
|                                            
|Net income per share                         |                                |                             
|Basic                                        | $0.15                          | $0.07                       
|                                            
|Diluted                                      | $0.14                          | $0.07                       
|                                            
|Weighted average number of shares (000s)     |                                |                             
|Basic                                        | 87,902                         | 88,004                      
|                                            
|Diluted                                      | 90,046                         | 89,941                      
|                                            

(See accompanying notes)

29





COGNOS INCORPORATEDCONSOLIDATED BALANCE SHEETS(US$000s, CDN GAAP)

|                                                                                  | August 31,

2002 |  | February 28,

2002
|--------------------------------------------------------------------------------- | ---------------- |  | ------------------
|                                                                                 
|Assets                                                                            | (Unaudited)      |  |                   
|Current assets                                                                    |                  |  |                   
|Cash and cash equivalents                                                         | $289,100         |  | $192,900          
|Short-term investments                                                            | 42,161           |  | 121,629           
|Accounts receivable                                                               | 84,235           |  | 114,059           
|Inventories                                                                       | 775              |  | 537               
|Prepaid expenses                                                                  | 7,803            |  | 6,765             
|Income tax assets                                                                 | 6,019            |  | 6,404             
|                                                                                 
|                                                                                  | 430,093          |  | 442,294           
|Fixed assets                                                                      | 59,908           |  | 59,008            
|Goodwill                                                                          | 15,408           |  | 15,230            
|Intangible assets                                                                 | 9,209            |  | 14,203            
|                                                                                 
|                                                                                  | $514,618         |  | $530,735          
|                                                                                 
|Liabilities                                                                       |                  |  |                   
|Current liabilities                                                               |                  |  |                   
|Accounts payable                                                                  | $ 18,438         |  | $ 26,387          
|Accrued charges                                                                   | 26,057           |  | 34,210            
|Salaries, commissions, and related items                                          | 36,330           |  | 37,453            
|Income taxes payable                                                              | 2,870            |  | 6,167             
|Deferred revenue                                                                  | 104,858          |  | 110,504           
|                                                                                 
|                                                                                  | 188,553          |  | 214,721           
|Long-term liabilities                                                             | 5,845            |  | 9,131             
|Deferred income taxes                                                             | 4,428            |  | 6,328             
|                                                                                 
|                                                                                  | 198,826          |  | 230,180           
|                                                                                 
|Stockholders' Equity                                                              |                  |  |                   
|Capital stock                                                                     |                  |  |                   
|Common shares     (August 31, 2002 - 87,857,767;

February 28, 2002 - 87,997,220) | 156,735          |  | 151,637           
|Retained earnings                                                                 | 173,524          |  | 164,144           
|Accumulated other comprehensive items                                             | (14,467)         |  | (15,226)          
|                                                                                 
|                                                                                  | 315,792          |  | 300,555           
|                                                                                 
|                                                                                  | $514,618         |  | $530,735          
|                                                                                 

(See accompanying notes)

30

COGNOS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (US$000s, CDN GAAP) (Unaudited)


|                                                                  | Three months ended

August 31, | Six months ended

August 31,
|----------------------------------------------------------------- | ------------------------------ | ----------------------------
|                                                                 
|                                                                  | 2002                           | 2001                        
|                                                                 
|Cash provided by (used in) operating activities                   |                                |                             
|Net income (loss)                                                 | $ 12,771                       | $ 5,886                     
|Non-cash items                                                    |                                |                             
|Depreciation and amortization                                     | 6,874                          | 9,290                       
|Amortization of deferred stock-based compensation                 | 185                            | 577                         
|Amortization of other deferred compensation                       | 148                            | 666                         
|Deferred income taxes                                             | (778)                          | (2,293)                     
|Loss on disposal of fixed assets                                  | 4                              | 325                         
|                                                                 
|                                                                  | 19,204                         | 14,451                      
|Change in non-cash working capital                                |                                |                             
|Decrease (increase) in accounts receivable                        | (2,791)                        | 11,033                      
|Decrease (increase) in inventory                                  | 14                             | (9)                         
|Decrease (increase) in prepaid expenses                           | (599)                          | 46                          
|Decrease (increase) in income tax assets                          | -                              | 98                          
|Increase (decrease) in accounts payable                           | (2,046)                        | 2,974                       
|Increase (decrease) in accrued charges                            | (7,332)                        | (80)                        
|Increase (decrease) in salaries, commissions, and related items   | 2,651                          | 1,715                       
|Increase (decrease) in income taxes payable                       | (421)                          | (472)                       
|Increase (decrease) in deferred revenue                           | (5,639)                        | (1,110)                     
|                                                                 
|                                                                  | 3,041                          | 28,646                      
|                                                                 
|Cash provided by (used in) investing activities                   |                                |                             
|Maturity of short-term investments                                | 57,195                         | 61,895                      
|Purchase of short-term investments                                | (42,017)                       | (88,285)                    
|Additions to fixed assets                                         | (3,500)                        | (1,562)                     
|                                                                 
|                                                                  | 11,678                         | (27,952)                    
|                                                                 
|Cash provided by (used in) financing activities                   |                                |                             
|Issue of common shares                                            | 1,960                          | 1,859                       
|Repurchase of shares                                              | (3,150)                        | (9,998)                     
|Increase (decrease) in long-term debt and long-term liabilities   | (3,087)                        | 65                          
|                                                                 
|                                                                  | (4,277)                        | (8,074)                     
|                                                                 
|Effect of exchange rate changes on cash                           | (2,372)                        | (86)                        
|                                                                 
|Net increase (decrease) in cash and cash equivalents              | 8,070                          | (7,466)                     
|Cash and cash equivalents, beginning of period                    | 281,030                        | 177,775                     
|                                                                 
|Cash and cash equivalents, end of period                          | 289,100                        | 170,309                     
|Short-term investments, end of period                             | 42,161                         | 87,823                      
|                                                                 
|Cash, cash equivalents, and short-term investments, end of period | $331,261                       | $258,132                    
|                                                                 

(See accompanying notes)

31

COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

1.Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared by the Corporation in United States (U.S.) dollars and in accordance with Canadian generally accepted accounting principles
(GAAP) with respect to the preparation of interim financial information. Accordingly, they do not include all information and footnotes as required in the preparation of annual consolidated financial statements. These unaudited condensed
notes to the consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Annual Information Form for the fiscal year ended February 28, 2002.

The preparation of these unaudited consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying
notes. In the opinion of Management, these unaudited consolidated financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could
differ from these estimates and the operating results for the interim periods presented are not necessarily indicative of the results expected for the full year.

All information is presented in thousands of U.S. dollars, unless otherwise stated. Consolidated financial statements prepared in accordance with U.S. GAAP, in U.S. dollars, are made available to all
shareholders, and filed with various regulatory authorities.

2.Revenue Recognition

The Corporation recognizes revenue in accordance with Statement of Position (SOP) 97-2, Software Revenue Recognition, issued by the American Institute of Certified Public Accountants.

Substantially all of the Corporation's product license revenue is earned from licenses of off-the-shelf software requiring no customization. Revenue from these licenses is recognized when all of the following
criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is probable. If a license includes the right to return the product for refund or credit, revenue is
recognized net of an allowance for estimated returns provided all the requirements of SOP 97-2 have been met.

Revenue from product support contracts is recognized ratably over the life of the contract. Incremental costs directly attributable to the acquisition of product support contracts, and that would not have
been incurred but for the acquisition of that contract, are deferred and expensed in the period the related revenue is recognized. These costs include commissions payable on sales of support contracts.

Revenue from education, consulting, and other services is recognized at the time such services are rendered.

32



COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

For contracts with multiple obligations (e.g. deliverable and undeliverable products, support obligations, education, consulting and other services), the Corporation allocates revenue to each element of the contract based on objective evidence,
specific to the Corporation, of the fair value of the element.

3.Goodwill

During the three and six months ended August 31, 2002 there were additions to goodwill of $138,000 and $178,000 related to additional consideration paid to the former shareholders of Teijin Cognos
Incorporated (TCI). This additional consideration was based on components of the net revenue of TCI during the quarter.

Under CICA Handbook Section 3062 Goodwill and Other Intangible Assets(Section 3062) which the Corporation implemented March 1, 2002, goodwill will no longer be amortized but will be subject to an
annual impairment test. The Corporation performed the required impairment tests of goodwill and indefinite-lived intangible assets as of March 1, 2002. The effect of these tests was not material on the earnings and financial position of the
Corporation.

33



COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

If the non-amortization provision of Section 3062 had been in effect beginning March 1, 2001 the effect would have been as follows (000's except per share amounts):

|                                     | Three months ended

August 31, |  | Six months ended

August 31,
|------------------------------------ | ------------------------------ |  | ----------------------------
|                                     | 2002                           |  | 2001                        
|                                     |                               
|Reported net income                  | $12,771                        |  | $5,886                      
|Goodwill amortization                | -                              |  | 1,089                       
|                                     |                                |  |                             
|Adjusted net income                  | $12,771                        |  | $6,975                      
|                                     |                                |  |                             
|Basic net income (loss) per share:   |                                |  |                             
|Reported net income:                 | $0.15                          |  | $0.07                       
|Goodwill amortization                | -                              |  | 0.01                        
|                                     |                                |  |                             
|Adjusted net income                  | $0.15                          |  | $0.08                       
|                                     |                                |  |                             
|Diluted net income (loss) per share: |                                |  |                             
|Reported net income:                 | $0.14                          |  | $0.07                       
|Goodwill amortization                | -                              |  | 0.01                        
|                                     |                                |  |                             
|Adjusted net income                  | $0.14                          |  | $0.08                       
|                                     |                                |  |                             
|Weighted average number of shares:   |                                |  |                             
|Basic                                | 87,902                         |  | 88,004                      
|                                     |                                |  |                             
|Diluted                              | 90,046                         |  | 89,941                      
|                                     |                                |  |                             

4.Intangible Assets

|                       | As at August 31,

2002 |  | As at February 28,

2002 |  |         
|---------------------- | ---------------------- |  | ------------------------ |  | --------
|                       |                        |  |                          |  |         
|                       | Cost                   |  | Accumulated Amortization |  | Cost    
|                       |                        |  |                          |  |         
|                       | ($000s)                |  | ($000s)                  |  |         
|Acquired

Technology   | $ 13,681               |  | $ 10,024                 |  | $ 13,681
|In-process

technology | 38,400                 |  | 33,212                   |  | 38,400  
|Deferred

Compensation | 8,945                  |  | 8,581                    |  | 8,945   
|                       |                        |  |                          |  |         
|                       | 61,026                 |  | 51,817                   |  | 61,026  
|                       | (51,817)               |  |                          |  | (46,823)
|                       |                        |  |                          |  |         
|Net book value         | $ 9,209                |  |                          |  | $ 14,203
|                       |                        |  |                          |  |         

34



COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

Amortization of intangible assets was $2,292,000 and $3,271,000 in the quarters ended August 31, 2002 and August 31, 2001, respectively and was $4,994,000 and $6,542,000 for the six months ended August 31, 2002 and
August 31, 2001, respectively. The estimated amortization expense related to intangible assets is as follows ($000s):

|2003 (Q3 to Q4) | $3,177
|--------------- | ------
|2004            | 4,442 
|2005            | 1,007 
|2006            | 583   

5.Income Taxes

The Corporation provides for income taxes in its quarterly unaudited financial statements based on the estimated effective tax rate for the full fiscal year.

6.Net Income (loss) per Share

|                                                       | Three months ended

August 31, |  | Six months ended

August 31,
|------------------------------------------------------ | ------------------------------ |  | ----------------------------
|                                                       |                                |  |                             
|                                                       | 2002                           |  | 2001                        
|                                                       |                                |  |                             
|Basic Net Income (Loss) per Share                      |                                |  |                             
|Net income (loss)                                      | $12,771                        |  | $5,886                      
|                                                       |                                |  |                             
|Weighted average number of shares outstanding          | 87,902                         |  | 88,004                      
|                                                       |                                |  |                             
|Basic net income (loss) per share                      | $0.15                          |  | $0.07                       
|                                                       |                                |  |                             
|                                                       |                                |  |                             
|Diluted Net Income (Loss) per Share                    |                                |  |                             
|Net income (loss)                                      | $12,771                        |  | $5,886                      
|                                                       |                                |  |                             
|Weighted average number of shares outstanding          | 87,902                         |  | 88,004                      
|Dilutive effect of stock options                       | 2,144                          |  | 1,937                       
|                                                       |                                |  |                             
|Adjusted weighted average number of shares outstanding | 90,046                         |  | 89,941                      
|                                                       |                                |  |                             
|Diluted net income (loss) per share                    | $0.14                          |  | $0.07                       
|                                                       |                                |  |                             

35



COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

For the six months ended August 31, 2001, the effect of converting stock options was antidilutive as a result of net losses.

7.Comprehensive Income

Comprehensive income includes net income and other comprehensive income (OCI). OCI refers to changes in net assets from transactions and other events, and circumstances other than transactions with
stockholders. These changes are recorded directly as a separate component of Stockholders Equity and excluded from net income. The only other comprehensive income item for the Corporation relates to foreign currency translation adjustments
pertaining to those subsidiaries not using the U.S. dollar as their functional currency net of derivative gains or losses.

The components of comprehensive income (loss) were as follows ($000s):

|                                         | Three months ended

August 31, |  | Six months ended

August 31,
|---------------------------------------- | ------------------------------ |  | ----------------------------
|                                         | 2002                           |  | 2001                        
|                                         |                                |  |                             
|                                         |                                |  |                             
|Net income (loss)                        | $12,771                        |  | $5,886                      
|Other comprehensive income (expense):    |                                |  |                             
|Foreign currency translation adjustments | (3,105)                        |  | (1,006)                     
|                                         |                                |  |                             
|Comprehensive income (loss)              | $9,666                         |  | $4,880                      
|                                         |                                |  |                             

8.Accounting for Stock Option Plans

As permitted by CICA Handbook Section 3870 Stock-Based Compensation and Other Stock-Based Payments (Section 3870), the Corporation did not adopt the fair value based method of accounting for all
employee stock-based compensation. The exercise price of all stock options is equal to the market price of the stock on the trading day preceding the date of grant. Accordingly, no compensation cost has been recognized in the financial statements
for the Corporations stock option and stock purchase plans.

36

COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

Section 3870 requires disclosure of pro forma net income and earnings per share as if the Corporation had elected to adopt the fair value based accounting method. If the fair values of the options granted had
been recognized as compensation expense on a straight line basis over the vesting period of the grant, stock-based compensation costs would have reduced net income, basic net income per share and diluted income per share as indicated in the table
below ($000s):

|                                     | Three months ended

August 31, |  | Six months ended

August 31,
|------------------------------------ | ------------------------------ |  | ----------------------------
|                                     |                                |  |                             
|                                     | 2002                           |  | 2001                        
|                                     |                                |  |                             
|Net income (loss):                   |                                |  |                             
|As reported                          | $12,771                        |  | $5,886                      
|Proforma                             | $ 5,655                        |  | $ (550)                     
|Basic net income (loss) per share:   |                                |  |                             
|As reported                          | $0.15                          |  | $0.07                       
|Proforma                             | $0.06                          |  | $(0.01)                     
|Diluted net income (loss) per share: |                                |  |                             
|As reported                          | $0.14                          |  | $0.07                       
|Proforma                             | $0.06                          |  | $(0.01)                     





The fair value of the options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions:

|                         | Three months ended

August 31, |  | Six months ended

August 31,
|------------------------ | ------------------------------ |  | ----------------------------
|                         |                                |  |                             
|                         | 2002                           |  | 2001                        
|                         |                                |  |                             
|                         |                                |  |                             
|Risk-free interest rates | N/A*                           |  | 4.3%                        
|Expected life of options | N/A*                           |  | 2.9 years                   
|Expected volatility      | N/A*                           |  | 66.9%                       
|Dividend yield           | N/A*                           |  | 0.0%                        

* During the three months ended August 31, 2002 no options were granted.

9.     Segmented Information

The Corporation has one reportable segment--computer software products.

37



COGNOS INCORPORATED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(All amounts in U.S. dollars, unless otherwise stated)

(In accordance with CDN GAAP)

10.Secondary Offering

On July 16, 2002, subsequent to the quarter end, the Corporation filed a final registration statement with the United States Securities and Exchange Commission and a Canadian prospectus with Canadian
securities regulators for a secondary offering of 3,600,000 common shares at a price to the public of $17.50 per share. All of the common shares in the offering were sold by certain entities affiliated with Michael U. Potter. The Corporation did not
receive any proceeds from the sale of the shares. The Corporation incurred costs related to the filing of this secondary offering and those costs were expensed during the quarter. Under this secondary offering the Corporation repurchased 180,000 of
its own shares at an aggregate purchase price of $3,150,000.

38