Systems Xcellence to provide software and services for newfoundland and labrador pharmacy network  

MILTON, Ontario June 8, 2006, Systems Xcellence Inc. (“SXC”) (TSX: SXC), a leading provider of healthcare information technology solutions throughout the pharmaceutical supply chain, announces a $5.0 million multi-year software license agreement with Emergis Inc. (TSX: EME) to deploy a comprehensive, province-wide drug information system (“DIS”) solution in Newfoundland and Labrador.  All figures are in U.S. dollars. 

Under terms of the agreement, SXC will provide software applications and related integration services to help establish the DIS solution in Newfoundland and Labrador. The implementation phase of the solution is expected to take approximately two years. SXC will also provide seven years of maintenance and support for its applications. 

“We are pleased to have the opportunity to support Emergis and the province in their effort to improve the quality of health care and patient safety for the citizens of Newfoundland and Labrador,” said Mike Bennof, SVP Public Sector at SXC. “This agreement expands the presence of our Canadian Health solutions into another province and we look forward to exploring opportunities to participate in other DIS solutions across Canada.” 

The Newfoundland and Labrador Pharmacy Network is a provincial DIS that will offer on-line, real-time province-wide medication profiles for everyone who receives medications in the province, as well as comprehensive drug information and an interactive database that will assist pharmacists and physicians in identifying potential adverse drug interactions and events. 

The software applications provided by SXC form the core health record transaction processing portion of the Emergis DIS solution, enabling essential ePrescribing (Prescription and Dispense record keeping) functions and proven electronic Drug Utilization Review services. The software will utilize the pan-Canadian Electronic Drug (“CeRx”) Messaging Standard established under the leadership of Canada Health Infoway.  Based in HL7 Version 3, CeRx will ensure the reusability and interoperability of the software in other jurisdictions of Canada.    

The DIS solution is an important component of the electronic health record (EHR) that governments throughout Canada will be deploying in the coming years. Canada Health Infoway Inc. invests with public sector partners across Canada to implement and reuse compatible health information systems that support a safer, more efficient healthcare system. Infoway’s mission is to foster and accelerate the development and adoption of electronic health information systems with compatible standards and communications technologies on a pan-Canadian basis, with tangible benefits to Canadians.  

About Systems Xcellence

Systems Xcellence (SXC) is a leading provider of healthcare information technology solutions and services to the healthcare benefits management industry. The Company’s product offerings and solutions combine a wide range of software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as Federal, provincial, and, state and local governments, pharmacy benefit managers, managed care organizations, retail pharmacy chains and other healthcare intermediaries. SXC is headquartered in Milton, Ontario with offices and processing centres in Lombard, Illinois; Scottsdale, Arizona; Warminster, Pennsylvania; and Victoria, British Columbia. For more information, please visit www.sxc.com.

Forward-Looking Statements

Certain statements included herein, including those that express management's expectations or estimates of  future developments or SXC’s future performance constitute "forward-looking statements" within the meaning of applicable securities laws.   Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies.   SXC cautions that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause SXC’s actual financial results, performance, or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements.   Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation, SXC’s ability to achieve increased market acceptance for its product offerings and penetrate new markets; consolidation in the healthcare industry; the existence of undetected errors or similar problems in its software products; its ability to identify and complete acquisitions, manage its growth and integrate acquisitions; its ability to compete successfully; potential liability for the use of incorrect or incomplete data; the length of the sales cycle for its healthcare software solutions; interruption of its operations due to outside sources; its dependence on key customers; maintaining its intellectual property rights and litigation involving intellectual property rights; its ability to obtain, use or successfully integrate third-party licensed technology; compliance with existing laws, regulations and industry initiatives and future change in laws or regulations in the healthcare industry; breach of its security by third parties; its dependence on the expertise of its key personnel; its access to sufficient capital to fund its future requirements; and potential write-offs of goodwill or other intangible assets.  This list is not exhaustive of the factors that may affect any of SXC’s forward-looking statements.  Investors are cautioned not to put undue reliance on forward-looking statements.  All subsequent written and oral forward-looking statements attributable to SXC or persons acting on its behalf are expressly qualified in their entirety by this notice. SXC disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.   Risks and uncertainties about SXC’s business are more fully discussed in its Annual Information Form.

Certain of the assumptions made by SXC in preparing forward-looking information and management’s expectations include: maintenance of its existing customers and future retention of its contracts, its ability to market its products successfully to anticipated customers, the impact of increasing competition, the growth of prescription drug utilization rates at predicted levels, the retention of its key personnel, its customers continuing to process transactions at historical levels, that its systems will not be interrupted for any significant period of time, that its products will continue to perform free of major errors, its ability to obtain financing on acceptable terms and that there will be no significant changes in the regulation of its business. 

Completion of the Offering is subject to market conditions and other factors, and there can be no assurance that the Offering will be completed on the contemplated terms or at all or that the Company’s common shares will be accepted for listing on the Nasdaq National Market.   

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Dave Mason	Jeff Park
Investor Relations – Canada	Chief Financial Officer
The Equicom Group Inc.	Systems Xcellence Inc.
(416) 815-0700 ext. 237	Tel: (630) 559-3693
dmason@equicomgroup.com	investors@sxc.com
OR
Susan Noonan
Investor Relations – U.S.
The SAN Group, LLC
(212) 966-3650
susan@sanoonan.com