1 EXHIBIT 11 ---------- COMPUTER TASK GROUP, INCORPORATED --------------------------------- Computation of diluted earnings per share under treasury stock method set forth in Statement of Financial Accounting Standards No. 128 "Earnings Per Share." 39 2 COMPUTATION OF DILUTED EARNINGS PER SHARE UNDER TREASURY STOCK METHOD SET FORTH IN STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 128 "EARNINGS PER SHARE" (amounts in thousands, except per share data) Year Ended December 31: - ---------------------- 1998 1997* 1996* 1995* 1994* --------- --------- --------- --------- ---------- Weighted-average number of shares outstanding during year................. 16,216 16,758 16,980 16,658 17,938 Add Common Stock equivalents -- Incremental shares under stock option plans............... 697 857 620 741 125 -- Incremental shares related to convertible preferred stock.................. - - - - 454 --------- --------- --------- --------- --------- Number of shares on which diluted earnings per share is based.......................... 16,913 17,615 17,600 17,399 18,517 Net income for the year................... $ 24,045 $ 17,862 $ 11,080 $ 10,776 $ 4,797 Diluted earnings per share................ $ 1.42 $ 1.01 $ 0.63 $ 0.62 $ 0.26 Basic earnings per share.................. $ 1.48 $ 1.07 $ 0.65 $ 0.65 $ 0.27 * Restated to reflect a 2-for-1 stock split effective June 2, 1997. 40