Systems Xcellence Announces Amended Agreement with GATX Capital

- Company Also Repays Balance of Bank Debt -

MILTON, ON, May 2, 2002 -- Systems Xcellence Inc., (TSE: SXC) announced today that it has reached an amended agreement (the Agreement") with GATX Capital Canada, Inc., for the balance of its principal and interest payments due under its sale & leaseback transaction (the "GATX Sale/Leaseback") entered into in December 2000. SXC entered into the GATX Sale/Leaseback to finance certain intellectual property in connection with its March 2001 purchase of ComCoTec, Inc. The Agreement is subject to fulfillment of one condition involving confirmation of the payment and release of security from the Company's bank.

Highlights of the Agreement include new financial covenants that more closely mirror SXC's business plan following its acquisition of ComCoTec and greater flexibility in enabling the Company to secure new operating credit arrangements.

"With these new terms, SXC has been afforded greater flexibility in executing on its core business as a leading Application Service Provider (ASP), and provider of standardized and customized software solutions to the pharmaceutical benefits supply chain", said Gordon S. Glenn, President & CEO of SXC. "During these challenging economic times, SXC is pleased to have the continued support of GATX as it successfully executes on its business plan."

During the fiscal year, SXC reduced its long-term indebtedness by $5.5 million. SXC is also pleased to announce that subsequent to its fiscal 2002 year-end, it has repaid the $1.9 million remaining balance of its senior bank indebtedness through a combination of working capital and the proceeds of the Export Development Corporation (EDC) insurance claim it received in connection with its long-term receivable. This indebtedness included equipment financing and the balance of a term loan issued in connection with the long-term receivable. Also subsequent to its year-end, the Company extended the due-date of the commercial mortgage on its Milton headquarters facility through April 1, 2003 as it continues to solicit offers for the purchase of the facility. The Company had earlier announced that it would consider selling its headquarters facility through a sale and leaseback arrangement as another means of further enhancing its liquidity position.

Also at the end of its fiscal year 2002, SXC maintained strong operational cash flow and an over all breakeven cash position compared to prior quarters, ending fiscal 2002 with a $4.8 million cash position. This achievement is the result of improved and streamlined operations set in place earlier this fiscal year. Mr. Glenn added, "First achieving and then maintaining cash flow profitability were primary objectives we set for ourselves at the beginning of the fiscal year. We're proud of this accomplishment and will continue to closely monitor our operations during these still challenging economic times."

With its continuing positive cash flow, its $5.5 million reduction in long-term indebtedness in fiscal 2002, its new arrangement with GATX and the repayment of all of its senior bank debt subsequent to fiscal year-end, SXC is poised to successfully execute on its business plan, and focus on improving its liquidity position through new banking relationships. Completion of these initiatives is expected to further position the company for future growth.

About Systems Xcellence Inc:

Systems Xcellence (SXC) is headquartered in Milton, Ontario with offices and processing centres in Lombard, Illinois, Scottsdale, Arizona and Victoria, British Columbia. SXC is a leading provider of healthcare information technology (IT) solutions and services to the healthcare benefits management industry. The Company's product offerings and solutions combine a wide range of software applications, ASP processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as pharmacy benefit managers (PBMs), managed care organizations (MCOs), retail pharmacy chains and other healthcare intermediaries.

The Company's products offer its customers comprehensive pharmacy benefits management, claims switching and processing, drug dispensing, data warehousing and analysis, and rebate contract management systems. SXC delivers these solutions to its customers as software products bundled with systems implementation and consulting services, or on an ASP basis from its data centres in Scottsdale, Arizona and Lombard, Illinois. The Company's shares are traded on the Toronto Stock Exchange under the symbol SXC. SXC can be found on the Internet at www.sxc.com.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the Management Discussion and Analysis published in the Company's annual report.