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Press Release

TECSYS Announces Annual Results; Revenue and Profit Increase

MONTREAL, July 7, 2009—TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the fourth quarter and full 2009 fiscal year ended April 30th, 2009. The results of the full 2009 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Highlights of the Fourth Quarter include:

Revenue was $10.4M in Q4 of fiscal 2009 compared to $10.6M in Q4 of fiscal 2008.
Earnings from operations in Q4, 2009 were $815K compared to an adjusted $895K for the same quarter of last fiscal year which included a non-refundable tax credit of $641K for a total of $1,536K.
EBITDA for Q4, 2009 was $982K compared to an adjusted $445K for Q4 of last fiscal year which included a non-refundable tax credit of $641K for a total of $1,086K.
Net earnings for Q4, 2009 were $572K or $0.04 per share compared to $49K or $0.00 per share in Q4, 2008. Net earnings were achieved after accounting for net interest expense of $3K, foreign exchange losses of $117K, a further write-down on the Company's Asset-Backed Commercial Paper of $115K, and a share of net loss and amortization of intangible assets of $8K from a company in which TECSYS has an equity interest.
Gross margin percentage increased to 49% in Q4, 2009 compared to 47% in Q4 of last fiscal year.
Annualized return-on-equity was equal to 14.5% in Q4 of fiscal 2009 compared to 1.3% in Q4 of last fiscal year.
At the end of Q4, 2009 annualized recurring revenue stood at $13.4M the same as at the end of Q3, 2009. Recurring revenue is principally made-up of annual software maintenance contracts.
At the end of the fourth quarter, backlog stood at $20.4M compared to $20.6M at the end of Q3, 2009 and up from $19.2M at the end of Q4 of last fiscal year.
During the quarter, the Company generated $930K cash from operations compared to $761K for the corresponding quarter of fiscal 2008.
At the end of Q4, 2009 cash and cash equivalents, as well as short-term and other investments amounted to $7.8M compared to $5.7M at the end of Q4, 2008 with no significant long-term debt.

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: "It was a strong quarter and a strong year for TECSYS on all accounts, particularly when considering the economic climate. With our vertical market focus, we were able to post improved net earnings and increase cash from operations, further solidifying our balance sheet. We also strengthened our product line with an exciting new release and continued to improve our position in our vertical market sectors."

During the Quarter, the Company signed five new customers, including:

Two heavy equipment dealers, one in Ohio and the second in Missouri
A supplier of educational products in Ontario
An industrial distributor in Ontario
A 3rd party logistics provider in Wisconsin

Furthermore, TECSYS also signed a substantial number of business contracts with existing customers and completed the go-live of thirty projects for customers in Canada, the U.S. and Europe. Key account go-lives include: Providence Heath & Services and Orlando Regional Health Services in the hospital supply network sector, Warren CAT and Riggs CAT in the heavy equipment dealers sector, Canon USA, SCP Portugal and Robinson Home Products among others in the high-volume distribution sector.

Highlights of the full 2009 Fiscal Year include:

Revenue for fiscal 2009 increased 4% to $41M from $39.5M in the same period of last fiscal year.
Earnings from operations for 2009 were $2,181K compared to an adjusted $2,855K for the same period in last fiscal year which included a non-refundable tax credit of $641K for a total of $3,496K.
EBITDA reached $3,138K in fiscal 2009 compared to an adjusted $2,607K for fiscal year 2008 which included a non-refundable tax credit of $641K for a total of $3,248K.
Net earnings for 2009 were $1,587K or $0.12 per share compared to $1,263K or $0.09 per share for the same period of the prior fiscal year. Net earnings were achieved after accounting for net interest expense of $16K, foreign exchange losses of $280K, a write-down on the Company's Asset-Backed Commercial Paper of $238K, and a share of net loss and amortization of intangible assets of $60K from a company in which TECSYS has an equity interest.
Annualized return-on-equity was equal to 10.2% in fiscal 2009 compared to 8.3% in the same period in last fiscal year.

TECSYS' Q4 FY2009 Earnings Conference Call:

Date: July 7, 2009
Time: 4:30 pm
Phone number: 800-633-8757 or 416-620-5690

The call can be replayed by calling: 800-558-5253 (access code: 21430661) or 416-626-4100 (access code: 21430661)

View the Q4 FY2009 Financial Statements
( 23K)

About TECSYS

TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

Contact

Solutions and general info: info@tecsys.com
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
By phone: (514) 866-0001 or (800) 922-8649

The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with TECSYS Inc.'s business can be found in the MD&A section of the Company's annual report and annual information form for the fiscal year ended April 30th, 2009. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR (www.sedar.com).