Systems Xcellence Announces Walgreens Health Initiatives as Customer and Milestone in System Implementation

MILTON, Ontario (June 1, 2000) -- Systems Xcellence Inc., (TSE: SXC). On February 26, 1999 Systems Xcellence Inc. (SX) announced a significant contract with an unnamed U.S. healthcare provider. We are pleased to disclose today that the name of our new customer is Walgreen's Health Initiatives (WHI), a member of the Walgreen Co. family of companies. We are also pleased to announce today that Walgreens Health Initiatives has reached a significant production milestone and has begun processing claims using Systems Xcellence's Pharmacy Benefit System (HX-PBS).

"Systems Xcellence is proud to announce Walgreens Health Initiatives as a key customer. The success of our joint implementation project is a result of close cooperation and teamwork on the part of the project personnel of both companies. We will continue to work closely with WHI toward a successful migration of their clients to the new system," said Gordon S. Glenn, President and CEO of Systems Xcellence.

"The versatility of Systems Xcellence's core system and the company's cooperation in customizing the claims processing functions to meet WHI's specific requirements were key to our selection of Systems Xcellence as our software solution," added Robert Halaska, President of Walgreens Health Initiatives.

HX-PBS® (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.

Walgreens Health Initiatives (WHI) provides its clients with innovative and comprehensive pharmacy benefit management, state-of-the-art mail service pharmacy, an extensive range of home care products and services, exceptional clinical services, and the latest in specialty pharmacy products and services. Walgreens Health Initiatives is the trade name for WHP Health Initiatives, Inc., Walgreens Healthcare Plus, Inc., and Walgreens Advance Care, Inc., which are wholly owned subsidiaries of Walgreen Co.

Systems Xcellence is headquartered in Milton, Ontario, and provides advanced online transaction processing solutions for the healthcare benefits management industry. The Company provides 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.