Systems Xcellence Inc. Announces Three-Year $4.0 Million Software License, Support And Operations Contract

MILTON, ON, Nov. 9 /PRNewswire-FirstCall/ - Systems Xcellence Inc., ("SXC" or the "Company") today announced a three-year $4.0 million contract to provide a comprehensive suite of its pharmacy benefit management services to a pharmacy benefit manager ("PBM") based in the Northeast U.S. The contract is expected to be implemented by the end of the fourth quarter of 2005. All figures are in U.S. dollars.

"This is a unique sales opportunity for SXC and one that highlights the advantages of the flexible pricing capabilities inherent in our business model," said Gordon S. Glenn, President and CEO of SXC. "This is an important customer for us as it is a mid-sized PBM that is accelerating its growth through acquisitions and is looking for an outsourced solutions provider such as SXC that will allow them to focus their resources on building their business while we manage and maintain their core processing functions."

Under the terms of the contract, the PBM will use SXC's RxCLAIM(R), RxSERVER(R), RxTRACK(R), RxPORTAL(R) and RxMAX(R) solutions to provide on-line adjudication of prescription drug claims at the point of service, and to effectively manage health plan benefit design and implementation for their members. The contract consists of software license agreements relating to the Medicare Part D program that will commence January 1, 2006 and SXC's e- prescribing application which enables electronic prescribing and other transactions between physicians and payers. In addition, the PBM entered into software maintenance and professional service agreements and a systems services agreement, whereby SXC will remotely manage its software at the PBM's site. Since the PBM had previously assumed a software license for SXC's claims adjudication product, the vast majority of the contract value consists of software maintenance and recurring services revenue.

"We believe that the PBM was drawn to SXC as we offer a broad suite of scalable services and applications to help healthcare organizations cost effectively manage a diverse set of health plans," said Mike Meyer, Senior Vice President of Business Development and Account Management of SXC. "In addition, we believe that our strong development track record and reputation for delivering superior service were key factors in providing the PBM with confidence that their capabilities for processing prescription drug transactions will remain at the industry forefront for innovation and effectiveness."

About Systems Xcellence Inc.

Systems Xcellence (SXC) is headquartered in Milton, Ontario with offices and processing centres in Lombard, Illinois, Warminster, Pennsylvania, Scottsdale, Arizona and Victoria, British Columbia. Through its SXC Health Solutions, Inc subsidiary, SXC is a leading provider of healthcare information technology solutions and services to the U.S. healthcare benefits management industry. The company's product offerings and solutions combine a wide range of software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, independent, chain and mail-order pharmacies and other healthcare intermediaries. SXC can be found on the Internet at www.sxc.com.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the Company's Annual Information Form.

Systems Xcellence

CONTACT: Dave Mason, Investor Relations, The Equicom Group Inc., (416)815-0700 ext. 237, dmason@equicomgroup.com; Irwin Studen, Chief FinancialOfficer, Systems Xcellence Inc., Tel: (905) 876-4741, investors@sxc.com

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