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Systems Xcellence Inc. Announces Shareholder Protection Rights Plan MILTON, Ontario 

(May 27, 1999) - SYSTEMS XCELLENCE INC. (the "Corporation") (TSE: SXC) announced the adoption by its Board of Directors on May 27, 1999 of a Shareholder Protection Rights Plan (the "Plan"), similar to those recently adopted by many other Canadian corporations. The Corporation is concerned that the current legislation does not provide sufficient time for the Board and shareholders of the Corporation to properly evaluate a bid or pursue alternatives with a view to maximizing shareholder value. The Plan seeks to ensure that all shareholders of the Corporation have an equal opportunity to participate in the benefits of a take-over bid.

The Plan allows a potential bidder to make a "permitted bid" to all shareholders which must remain open for a minimum period of 60 days. During this period, no tendered shares may be acquired by the bidder. The Plan also allows for a "competing permitted bid" to be made while the permitted bid is in existence.

To implement the Plan, the Board of Directors of the Corporation has authorized the issue of one Right in respect of each outstanding common share of the Corporation to holders of record at 5:00 p.m. (Toronto time) on May 27, 1999. For administrative convenience, the Rights will be represented by the certificates representing common shares.

The plan is effective immediately and will be submitted to shareholders of the Corporation for their confirmation within six months. The Plan will expire on the third anniversary of the date of the Plan.