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Systems Xcellence Signs Strategic Development Alliance Contract with Major U.S. Pharmacy Chain

MILTON, Ontario (March 28, 2000) -- Systems Xcellence Inc., (TSE: SXC) announced today that it has entered into a strategic alliance with a major U.S. pharmacy chain. Under the terms of the agreement, SX will provide a pharmacy claim pre-adjudication application referred to as HX-Verify, the first release of the HX-Compliance product, as well as its Pharmacy Benefits System (HX-PBS). The initial multi-million dollar engagement will provide a platform for additional strategic products to be jointly designed and developed through this partnership. For competitive reasons, the name and value of the contract cannot be disclosed at this time.

"This alliance represents a significant new business opportunity for SX in terms of near-term and recurring revenue. More importantly, it represents the first step of a long-term relationship with a major pharmacy chain to provide strategic information technology which can affect a significant return-on-investment in their core operations", said Gordon S. Glenn, President and CEO of Systems Xcellence.

HX-Compliance is the latest product initiative in Systems Xcellence's growing line of Healthcare Xcellence products for the healthcare benefits management industry. 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.