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MILTON, Ontario (August 24, 1999) -- Systems Xcellence Inc. (TSE: SXC), a leading provider of electronic transaction processing software for the healthcare information technology industry, announced today that they have signed a contract with Integrated Pharmaceutical Services, Inc. (IPS), a subsidiary of Foundation Health Systems, Inc. Under the terms of the agreement, Systems Xcellence will work with IPS to develop a customized solution enabling them to better manage their membership eligibility database, as well as enhance their decision support capabilities. SX will utilize portions of their HX-Member and HX-Eval components as the foundation for creating this solution. The HX-Member component will greatly improve their ability to manage the membership data associated with the 5 million lives that they currently support. In addition, the HX-Eval component will enhance their ability to manage their drug spend, while providing them with information on which crucial decisions will be made. The SX solution will seamlessly interface with IPS' third party claims processor, resulting in higher levels of service for their clients.

"SX is very pleased to commence this new relationship." states Gordon Glenn, President and CEO. "IPS/Foundation Health represents an important engagement for us with a Health Management Organization (HMO), as well as our continued penetration into the managed care market place. Not only are we once again providing an integrated solution to a premier client, but we are validating the strength of our component based Healthcare Xcellence product suite. We are looking forward to a mutually beneficial relationship with IPS. "

"This relationship truly exemplifies the concept of best-of-breed system integration" states Jack McClurg, Chief Information Officer of IPS. "By leveraging the proven technologies in pharmacy solutions that SX bring to the table, we will be able to put concise, actionable data in the hands of the business and clinical analysts in record time."

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.