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Press Release

TECSYS Announces Q1, 2010 Results; Declares Dividend Increase

MONTREAL, September 10, 2009—TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2010, ended July 31st, 2009. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.

Highlights of the First Quarter include:

Revenue was $9.2M in Q1 of fiscal 2010 compared to $10.2M in Q1 in fiscal 2009, due to an increased focus on proprietary products and services.
Earnings from operations for the first quarter of fiscal 2010 increased to $300K compared to $266K in Q1 2009.
EBITDA for Q1 of fiscal 2010 was $455K compared to $656K for Q1 of last fiscal year.
Net earnings for the first quarter of fiscal 2010 were $108K or $0.01 per share, compared to $274K or $0.02 per share for the first quarter of last fiscal year. Net earnings were achieved after accounting for net interest income of $2K, foreign exchange losses of $168K and a share of net loss and amortization of intangible assets of $26K from a company in which TECSYS has an equity interest.
Annualized return-on-equity was equal to 2.7% in Q1 of fiscal 2010 compared to 7.1% in Q1 of last fiscal year.
At the end of Q1, 2010, annualized recurring revenue stood at $12.8M up from $11.7M at the end of Q1, 2009. Recurring revenue is principally made-up of annual software maintenance contracts.
At the end of Q1, 2010, backlog stood at $18.4M compared to $19.0M at the end of Q1, 2009.
During the quarter, the Company generated $442K cash from operations, up from $47K in the first quarter of the prior fiscal year.
At the end of Q1, 2010, cash, cash equivalents and short-term investments amounted to $8.0M compared to $5.5M at the end of Q1, 2009 with no significant long term debt.

TECSYS also announced today that the Company's Board of Directors has decided to increase the semi-annual dividend to $0.025/share, to be paid on October 7, 2009 to shareholders of record on September 23, 2009. This represents a 25% increase in the dividends paid to shareholders.

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: "Through a combination of new business from existing and new clients, a solid backlog and prudent cost control, the first quarter was reasonably good. Our focus on proprietary software sales during this downturn is demonstrated in our numbers, with sales of our own software and services rising by 4% over last year's Q1, while sales of third-party products dropped by 45%. As a result, our gross margin rose to 46%, up from 39% and we continued to generate cash, further strengthening our balance sheet. The increase in our dividend underscores our commitment to shareholders and makes dividend distribution on an annual basis equal to approximately 15% of cash from operations generated within the last 12 months."

During the Quarter, the Company signed agreements with existing clients and new customers including:

Two industrial distributors in Ontario
Music and DVD wholesale distributor in Ontario
Educational products distributor in Ontario
Home décor products distributor in Ontario
Electronic products distributor in Quebec
Photo equipment and supplies distributor
Giftware products distributor in Ontario
A major healthcare services agency in New York
A distributor of gas and welding products and supplies in Texas

Furthermore, TECSYS also deployed its supply chain execution solutions at twenty customers in Canada, the U.S. and Europe.

TECSYS' Q1 FY2010 Earnings Conference Call:

Date: September 10, 2009
Time: 4:30 pm
Phone number: 800-379-4140 or 416-620-5690

The call can be replayed by calling 800-558-5253 (access code: 21436538) or 416-626-4100 (access code: 21436538).

View the Q1 FY2010 Financial Statements
( 20K)

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).