Systems Xcellence announces fOUR yEAR ASP CONTRACT WITH NAVITUS HEALTH SOLUTIONS, LLCtm 

- Agreement expected to generate approximately US$1.6 million in new revenue for SXC -

MILTON, Ontario, January 19, 2004, Systems Xcellence Inc., ("SXC") (TSX: SXC) a leading provider of healthcare information technology solutions throughout the pharmaceutical supply chain, today announced an application service provider (ASP) contract with Navitus Health Solutions, LLCtm ("Navitus"), an Appleton, Wisconsin based newly formed provider of healthcare products and services, including pharmacy benefit management solutions.

Under the terms of the four-year agreement, Navitus will use SXC's RxCLAIM®, RxTRACK® and RxMAX© ASP solutions to provide on-line adjudication of prescription drug claims at the point of service, and to effectively manage health plan benefit design and implementation for their members. Based on the expected volume of transactions, which went live on SXC's data center in January, this contract will generate approximately US$400,000 per year in new transactions-based revenue for SXC.

"Navitus is the result of a partnership amongst several leading managed care organizations in Wisconsin, some of whom are existing customers of SXC. This agreement will help to strengthen those existing relationships while further expanding SXC's presence throughout the region," said Gordon S. Glenn, President & CEO at SXC. "While the total value of the Navitus contract will be much higher, we expect to earn approximately US$400,000 per year of new revenue in addition to that currently generated from our clients who are already part of Navitus. As such, we continue to deliver on the key element of our growth strategy which is to build our base of revenues from recurring sources."

"By utilizing SXC's software, the organizations behind the formation of Navitus will have greater flexibility in developing health plans that are better suited to the unique needs of our various clients," said Robert Palmer, Navitus Vice President. "SXC has a proven record for delivering a high standard of customer service along with the type of solutions that can allow an organization like Navitus to build the most cost-effective formularies and to manage rebate relationships with manufacturers."

About RxCLAIM®, RxTRACK® and RxMAX©

RxCLAIM is a transaction processing system designed to provide instant on-line adjudication of third party prescription drug claims at the point of service, including trouble-free claims management and cost-effective review, as well as payment and billing support and real-time functionality for updating benefit, price, member, provider and drug details. Providing full flexibility and control, RxCLAIM facilitates the real-time processing of pharmacy claims and payments against eligibility, plan benefits, formularies, price, DUR/DUE, prior-authorization, rebates and more.

RxTRACK is a multi-level, highly versatile reporting tool that converts on-line transaction processing information into useable decision-making data.

RxMAX provides a performance-based contracting management system to assist in managing relationships with pharmaceutical manufacturers. RxMAX empowers users to manage and track contractual arrangements to ensure maximum rebates and performance-based incentives are received.

About Navitus Health Solutions

Navitus Health Solutions, LLCtm was created by Dean Health System, SSM of Wisconsin, Thedacare, Bellin Health System and their physician partners to utilize the expertise in pharmacy benefit management developed by their respective health plans. Navitus provides healthcare products and services, including pharmacy benefit management in a way that is genuinely transparent and unique in the pharmacy benefit management industry. At the same time, Navitus will assure that formulary development and quality improvement decisions are made by Wisconsin physicians and pharmacists committed to providing high quality pharmaceutical care at a reasonable cost to its members.