Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2004-21

TECSYS Inc. Reports Revenue Growth of 32%

MONTREAL, November 23, 2004 — TECSYS Inc. (TSE: TCS), an industry-leading Supply Chain Management (SCM) software company announced today its financial results for the second quarter of fiscal 2005 ending October 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 include:

• Revenue increased to $5.5M from $4.1M in the same quarter of last year, a 32% increase.
• Revenue increased to $10.8M in the first half from $7.9M in the comparable period of last year, an increase of 37%.
• Services revenue increased to $3.4M from $2.2M in Q2 of the previous fiscal year, an increase of 59%.
• Income from operations was $44K, after stock based compensation expenses of $62K.
• Cash balance rose to $9.9M, up from $9.2M at the end of the prior reporting quarter.

“Our growth continued in the second quarter as we continued to close new business and expand our services. Among other new accounts, we added our second European account with implementations scheduled for Spain and Portugal. We now have implementations under way in five (5) European countries.” said Peter Brereton, President and Co-CEO of TECSYS Inc. “We’ve also added a number of small and medium size customers across the entire business. We have maintained a healthy gross margin with a continued focus on costs and the streamlining of business processes across the three (3) divisions. At the same time, the dramatic shift in exchange rate has had a significant impact on our results, impacting income from operations in the reporting quarter by $86K against last year and impacting net income by an additional $400K. We believe the problem will be resolved in the coming months as our cost controls and revenue trends continue to have a positive impact on our numbers.”

Key achievements in the first fiscal quarter:

• TECSYS signed new contracts for its software solutions with the following clients.
  • EliteSeries Enterprise Supply Chain Management software – The largest global pool products supplier with operations the U.S., Portugal, and Spain; a leading medical and surgical distributor in Quebec supplying most hospitals and clinics throughout the province; and a midsize plumbing distributor (largest in the South western U.S.) headquartered in Phoenix, AZ, with nine branch offices.
  • PointForce Enterprise Supply Chain Management software – A wholesale distributor of plush toys; a distributor of home accents; an importer of rugs sold to retailers and online retail catalogues; and a designer, manufacturer, and distributor of fine quality furniture sold to department and furniture stores.
  • TECSYS Transportation Systems Enterprise TMS software – A Canadian distributor of professional audio and lighting equipment with locations in Montreal, Toronto, Ottawa, and Vancouver.
• Existing customers signed with the company to upgrade or went live with successful implementations.
  • EliteSeries Enterprise Supply Chain Management software – One of the largest healthcare provider networks in the U.S. doing self-distribution of pharmaceutical and medical/surgical products; a medical/surgical supplies and specialty pharmaceutical distributor in Florida; the U.S. federal government's healthcare services agency; a leading golf products supplier; a large book distributor in New Jersey; a pet foods wholesaler; a leading retailer of fabric products based in Montreal; and one of Canada's largest full service floral wholesalers.
  • PointForce Enterprise Supply Chain Management software – An importer/distributor of handmade items of glass, iron, ceramic, tin, and tableware from Mexico and China; and a global distributor of plastic sheet, rod, tube, and film.
  • TECSYS Transportation Systems Enterprise TMS software – A global distributor/supplier of automotive components in Michigan; a large distributor of electronic components with operations throughout the U.S. and Canada; A Canadian distributor of dental, medical, and veterinary supplies based in Vancouver; a leading sportswear distributor in British Columbia; a high-volume glove manufacture in Vancouver; one of Canada's largest full service floral wholesalers; Canada's top learning materials company; an importer/wholesaler of hardware; one of Canada's leading publisher of books; Canada's leading manufacturer of worker boots and safety footwear; and a major name document management company.

Revenues in the second quarter of fiscal 2005 increased 32% to $5.5M compared to the second quarter of fiscal 2004 of $4.1M. Income from operations for the reporting quarter was $44K, a decrease from operating income of $246K in the corresponding quarter of last year. After accounting for an exchange loss due to revaluation of balance sheet items of $400K and net interest income of $40K, the company had a net loss of $316K or a loss of $0.02 per share. For the six months ending October 31, 2004, revenues increased 37% to $10.8M compared to $7.9M in the same period of the prior fiscal year. Income from operations for the reporting six months was $179K compared to $327K in the corresponding period of fiscal 2004. Results for the current year include stock based compensation expenses of $113K that were not included in the prior year. Income from operations was also adversely affected by the stronger Canadian dollar in the first half of fiscal year 2005 compared to the same period of the last fiscal year by approximately $117K. After accounting for an exchange loss due to revaluation of balance sheet items of $433K and net interest income of $74K, the company had a net loss of $180K or loss of $0.01 per share. The continued pressure of the exchange rate with the U.S. dollar is evident in the reporting six months.

About TECSYS

TECSYS is a leading Supply Chain Management software company that provides powerful enterprise distribution and transportation logistics software solutions through three divisions: EliteSeries, PointForce, and TECSYS Transportation Systems.

Contact:

Solutions and General Info: info@tecsys.com
Investor relations: investor@tecsys.com
TECSYS Inc.
(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.