SYSTEMS XCELLENCE ANNOUNCES PHARMACY BENEFITS SERVICES CONTRACTS WITH TWO HEALTHCARE ORGANIZATIONS

MILTON, Ontario June 17, 2004, Systems Xcellence Inc., ("SXC") (TSX: SXC) a leading provider of healthcare information technology solutions throughout the pharmaceutical supply chain, today announced the sale and implementation of its InformedRx pharmacy benefit administration services to two U.S.-based healthcare providers. The contracts have a combined value of approximately US$500,000 over three years.

"These two contracts were won in large part due to references from our initial InformedRx customers," said Gordon S. Glenn, President and CEO of SXC. "For healthcare payer organizations, InformedRx delivers a compelling value proposition. These applications and services can generate significant cost savings while allowing our customers to take greater control over their drug benefit programs as well as the associated relationships with drug manufacturers and plan members. Health plan sponsors of all sizes are looking for alternative solutions to manage their prescription benefit programs and InformedRx is building a reputation as a superior alternative."

InformedRx is a broad suite of à la carte pharmacy benefit administrative services that provide a flexible and cost-effective alternative to traditional pharmacy benefit management offerings typically employed by managed care organizations (MCOs). The InformedRx suite provides healthcare benefit plan design, prescription drug claims adjudication, retail pharmacy network reimbursement contracts, drug utilization review, pharmaceutical manufacturer contracting and rebate management, and web portals for members as value-added services, all built around SXC's industry leading pharmacy claims processing system, RxCLAIM®. Featuring transparent pricing on a fee-for-service basis, InformedRx customers receive full benefit from SXC negotiated discounts from retail pharmacies and drug manufacturers.

"In the first quarter of 2004 we earned more than 60% of our revenue from recurring sources such as InformedRx and other ASP claims processing applications," added Mr. Glenn. "Our focus remains on addressing opportunities for these products as continued sales of these offerings will help facilitate the transition of our business from a software license dependent model to one that is driven primarily by recurring revenue."

About Systems Xcellence Inc