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Toronto Stock Exchange Symbol: SXC

Systems Xcellence Awarded Million Dollar U.S. System Upgrade Contract from Blue Cross and Blue Shield of South Carolina Assists Customer with U.S. Legislative (HIPAA) Strategy

MILTON, Ontario (February 26, 2001) -- Systems Xcellence Inc. (TSE: SXC), a leading provider of electronic transaction processing software for the healthcare information technology industry, announced today that it has signed a large add-on contract with Blue Cross and Blue Shield of South Carolina (Blue Cross). Under the terms of the agreement SX will provide an upgrade to the installed claims switch solution, requisite hardware and professional services. This new upgrade will enable Blue Cross to increase its processing capacity and to facilitate the integration of a new internal EDI gateway system. The solution being provided by Systems Xcellence will assist Blue Cross in its overall Health Insurance Portability and Accountability Act (HIPAA) legislative compliance transition.

"We are very pleased with our strong ongoing relationship with Blue Cross and welcome the opportunity to work with them on this significant upgrade," states Gordon Glenn, President and CEO of Systems Xcellence. "This is an important step for both companies as Blue Cross prepares for the changes required by the new legislation in the US and is consistent with our strategy of providing our customers with solutions and services that help them attain that readiness."

"Proven solid support and a strong team approach has led us to build upon our relationship with Systems Xcellence and provided us with the confidence to work with SX as we implement our strategies for HIPAA compliance," said Joe Johnson Blue Cross' AVP of EDI and E-Commerce.

Blue Cross and Blue Shield of South Carolina (www.SouthCarolinaBlues.com) is an independent licensee of the Blue Cross and Blue Shield Association. The largest health insurance provider in the state, Blue Cross covers 1.3 million lives in South Carolina. Blue Cross is located in Columbia, S.C., and currently serves a total 14 million people nationwide. Blue Cross installed the claims gateway solution from Systems Xcellence Inc. in late 1999. The system connects health care providers -- such as physicians, clinics, hospitals and laboratories -- with Blue Cross. The system supports high-volume and efficient submission of claims and eligibility verification requests from the provider community.

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.