Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2004-18

TECSYS Inc. Reports Fifth Consecutive Quarter of Profits

Revenue Up 42%

MONTREAL, September 8, 2004 — TECSYS Inc. (TSE: TCS), an industry-leading Supply Chain Management (SCM) software company announced today its financial results for the first quarter of fiscal 2005 ending July 31, 2004. All dollar amounts are expressed in U.S. currency and are reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP), with a reconciliation to United States GAAP and are unaudited.

Highlights for the reporting quarter include:

• Revenue increased to $5.3M from $3.8M in the same quarter of last year; a 42% increase.
• Product sales rose to $1.8M from $1.6M in the comparable quarter of last year.
• Services revenue rose from $2.0M in Q1 of the previous fiscal year to $3.4M, an increase of 74%.
• Cash balance rose to $9.2M, up from $8.8M at the end of the prior reporting quarter.
• Operating earnings increased by 67%, and net earnings increased to $136K compared to $10K in Q1 of last year, making for the company's fifth consecutive profitable quarter.

"We're off to a great start in our new fiscal year with the fifth consecutive profitable quarter," said Peter Brereton, President and Co-CEO. "The combination of revenue growth and continued fiscal prudence is beginning to show results on the bottom line. Our momentum in healthcare distribution and logistics continues in the EliteSeries division, and the PointForce division continues to do well in the giftware and wholesale-to-retail distribution market segments."

Other key achievements in the first fiscal quarter:

• TECSYS signed new contracts for its software solutions with a number of customers including:
  • EliteSeries Enterprise Supply Chain Management software — A medical supplies distributor in Florida, a designer and manufacturer/importer of connectors for the electronics industry in California, a high volume distributor of medical samples in New Jersey, and a large healthcare integrated delivery network in Missouri.
  • PointForce Enterprise Supply Chain Management software — A distributor of antique reproductions in Missouri, a distributor of furniture and storage units in Ontario, an importer-distributor of handmade items and tableware in British Columbia, a wholesaler of medical supplies in New York, an Ontario based distributor of office products, and a floral and specialty distributor based in Quebec.
  • TECSYS Transportation Systems Enterprise TMS software — A manufacturer and distributor of power tools in Minnesota, a distributor of woodworking and gardening tools in New York, a manufacturer of display products in Montreal, and a distributor of photographic equipment and supplies in Ontario.
• Existing customers signed with the company to upgrade or went live with successful implementations.
  • EliteSeries Enterprise Supply Chain Management software — A distributor of pet supplies in Massachusetts, a company in Calgary specializing in waste management, a floral distributor in Illinois, a distributor of home furnishings in Vancouver, a frozen meat wholesaler in New York, and automotive aftermarket products and industrial sealant distributor in Ohio.
  • PointForce Enterprise Supply Chain Management software — A distributor of pharmacy-related products to Canadian pharmacies/clinics/hospitals in Kingston, a manufacturer/distributor of fashion watches and exclusive lifestyle accessories in Toronto, a ceramic pottery distributor in Manhattan, an importer/distributor to the floral and gift trade based in Atlanta, an electronics distributor which services North America out of Kingston, a distributor of gourmet foods in Connecticut, an international wholesaler of home furnishings and decorative accessories in Maine, and a distributor of gourmet gift items to independent and chain retailers across North America based in Quebec.
  • TECSYS Transportation Systems Enterprise TMS software — A leading designer and manufacturer of men's and women's apparel and accessories, a document management company headquartered in Ontario, a travel materials distributor in British Columbia, one of Canada's largest mutual fund companies based in Toronto, a sole distributor for one of the largest metrology manufacturers in Mississauga, and a sportswear distributor in British Columbia.

Revenues in the first quarter of fiscal 2005 increased 42% to $5.3M compared to the first quarter of fiscal 2004 of $3.8M. Earnings from operations for the reporting quarter were $135K, an increase from operating earnings of $81K in the corresponding quarter of last year. Operating earnings for the current quarter includes stock-based compensation expenses of $51K which are not included in the comparable quarter of the prior year. After accounting for an exchange loss of $33K and net interest income of $34K, the company had net earnings of $136K or $0.01 per share, compared to $10K in the first quarter of the prior year. This improvement in the operating results reflects the benefits of improved product and services revenue in combination with the company's continuing efforts to streamline operations.

About TECSYS

TECSYS is a leading Supply Chain Management software company that provides powerful enterprise distribution software solutions through three divisions. 1) EliteSeries SCM software suite focuses on mid-to-large healthcare distribution and logistics companies (pharmaceuticals/medical/surgical distributors and integrated delivery networks), along with key segments in general wholesale distribution. EliteSeries' modules include Enterprise Performance Management, Distribution Management, Warehouse Management, Transportation Management, and E-Commerce. 2) PointForce distribution software suite focuses on the giftware industry, along with office products distribution and other small-to-medium importer/distributors. 3) TECSYS Transportation System provides a state-of-the-art multi-carrier solution for parcel and LTL management. The company's customers include about 600 mid-size and Fortune 1000 companies. TECSYS' shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol TCS.

Contact

Solutions and general information: info@tecsys.com
Investor relations: investor@tecsys.com
(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. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.