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Blue Cross and Blue Shield of Texas Contracts Systems Xcellence to Upgrade their Claims Processing Network Gateway 

This contract represents the third sale to a Blue Cross and Blue Shield organization in fiscal year 2000

MILTON, Ontario (November 3, 1999) -- Systems Xcellence Inc. (TSE: SXC), announced today that they have signed a contract with Blue Cross and Blue Shield of Texas (BCBS TX) to upgrade their existing software. In 1996 Systems Xcellence provided BCBS TX with a network gateway connecting it to various healthcare providers (i.e.: physicians, clinics, hospitals and laboratories) in order to submit claims and process eligibility verification requests. Under the terms of the agreement, Systems Xcellence (SX) will upgrade their current gateway software, an advanced data communications middleware product, as well as the SX Health ConneXions software, which BCBS TX have named internally rEDI-Link Blue. As a result of these enhancements, BCBS TX will be in a position to increase processing volumes, subsequently increasing productivity and future capacity for growth.In the early part of fiscal year 2000, Health Care Service Corporation of Illinois contracted SX to provide both software and associated services to facilitate the migration of their existing software to an improved operating system and hardware platform. More recently, SX partnered with Blue Cross and Blue Shield of South Carolina to provide a network gateway software solution. The signing of the most recent Blue Cross and Blue Shield of Texas contract constitutes the third sale to a Blue Cross and Blue Shield organization this fiscal year, with a combined contract value of $5 million (Cdn).

"It is a pleasure for us to be able to continue our strong working relationship with Blue Cross and Blue Shield of Texas." states Gordon Glenn, President and CEO. "We were pleased to be able to provide them with their network gateway, and being contracted to facilitate their upgrade further demonstrates the confidence that the Blue Cross and Blue Shield organizations have in SX's products and services. "

Systems Xcellence, headquartered in Milton, Ontario, is a leading supplier of patient-centric electronic transaction processing solutions for the healthcare information technology industry. Systems Xcellence combines robust, high-volume, high-availability transaction processing software, business expertise, and services to deliver superior solutions to the demanding managed care sector. The Company's shares are traded on the Toronto Stock Exchange under the symbol SXC.