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Systems Xcellence Signs License and Development
Contract with First Health Services Corporation

MILTON, Ontario (May 17, 2000) -- Systems Xcellence Inc., (TSE: SXC) announced today that it has entered into an agreement with First Health Services Corporation. Under the terms of the agreement, SX will provide a license for its Pharmacy Benefit System (HX-PBS) as well as provide a full suite of professional consulting and development services associated with product enhancements to support State Medicaid drug benefit transactions and the NCPDP 5.0 transaction set.

"The opportunity to work with First Health Services with its wealth of experience in health benefits management, combined with the strengths of our systems and people provides a perfect pairing. This partnership and the development involved represents the fulfillment of a key corporate goal enabling SX to expand our product offering into the realm of government mandated health benefits management." said Gordon S. Glenn, President and CEO of Systems Xcellence. "We are also pleased to report that the Company's contracted sales order backlog now sits at a record $29.8 million."

"Our agreement with Systems Xcellence underscores our commitment to leadership in innovation and technology in the administration of government funded pharmacy benefits," said Teresa R. DiMarco, President of First Health Services. "With this partnership, we will provide our clients with the advances in systems technology and functionality developed for commercial pharmaceutical benefit management and managed care, significantly enhanced with many new features to meet the specific, unique requirements of Medicaid and elderly pharmaceutical public assistance programs."

First Health Services is a leader in healthcare management, administration and information services for government funded health benefit programs. First Health Services is the company of choice for state Medicaid and elderly drug assistance programs, which have contracted independently for pharmacy benefit management and clinical management services. First Health Services [www.fhsc.com] is based in Glen Allen, Virginia and is a wholly owned subsidiary of First Health Group Corp. [First Health]. First Health is the premier full-service national health benefits company in the United States. The Company specializes in providing large, national employers with a fully integrated, single source for their group health programs providing comprehensive, cost-effective and innovative solutions for all the health benefits needs of their employees nationwide. Through its workers' compensation and auto service line, the Company provides a full range of managed care services for insurance carriers, state insurance funds, TPAs and large, self-insured national employers. Through its First Health Services government business line, the Company serves State Medicaid and public assistance programs with claims administration, pharmacy benefits management and clinical management services. First Health is headquartered in Downer's Grove, Illinois and its shares are traded on the NASDAQ exchange under the symbol FHCC.

HX-PBSŪ (Pharmacy Benefits System), SX's flagship product, combines full-functionality with a patient-centric design. Targeting Pharmacy Benefit Managers and Managed Care Organizations, HX-PBS is used to manage all aspects of pharmacy benefits, such as membership identification and enrollment, drug interaction and utilization, billing and payments, eligibility and claims adjudication.

Systems Xcellence is headquartered in Milton, Ontario, and provides advanced online transaction processing solutions for the healthcare benefits management industry. The Company combines robust software products, business expertise and services to deliver superior solutions to the ever-changing managed care sector. The Company's shares are traded on the Toronto Stock Exchange under the symbol SXC.