Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2005-14

TECSYS Inc. Reports 50% Revenue Growth in the First Quarter

MONTREAL, September 7, 2005 — TECSYS Inc. (TSX: TCS), an industry-leading Supply Chain Management (SCM) software company announced today its financial results for the first quarter of fiscal 2006 ending July 31, 2005. 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 $8.0M from $5.3M in the same quarter of last year; a 50% increase.
• Product sales rose to $3.0M from $1.8M in the comparable quarter of last year; a 71% increase.
• Services revenue rose to $4.9M from $3.4M in Q1 of the previous fiscal year; an increase of 43%.
• Earnings from operations increased to $263K from $135K in Q1 of the previous fiscal year; an increase of 95%.

Net income increased 65% in Q1 of fiscal 2006 over the comparable quarter of fiscal 2005.

“Business is brisk and we are off to a great start this fiscal year,” said Peter Brereton, President and Co-CEO. “We have a 71% rise in product revenues, new business in every market segment we pursue and another new account in the U.K. We are also very pleased to see the continuing improvement in income from operations.”

Other key achievements in the first fiscal quarter:

• TECSYS signed new contracts for its software solutions with a total of 7 new accounts including:
  • A motivational products company in Quebec
  • A key infrastructure supplier to Home Depot
  • A logistics company in the U.K.
  • A pharmaceutical samples distributor in New Jersey
  • An eCommerce fulfillment company in Texas
  • Giftware companies in both Toronto and Montreal
• The company also signed significant upgrade business in the quarter across all divisions.

Revenues in the first quarter of fiscal 2006 increased 50% to $8.0M compared to the first quarter of fiscal 2005 of $5.3M. Cash balance was $6.7M, down from $7.3M at the end of fiscal year 2005. Income from operations for the reporting quarter was $263K, an increase from $135K in the corresponding quarter of last year. After accounting for an exchange loss of $65K and net interest income of $22K, the company earned a net income of $225K or $0.02 per share. Net income in Q1 of last year was $136K or $0.01 per share. This improvement in the operating results reflects the benefits of rising product and services revenue in spite of being offset by the rising Canadian currency.

About TECSYS

TECSYS is a leading, fast-growing supply chain management software provider that delivers powerful enterprise distribution and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, giftware, office products, third-party logistics, and general wholesale high-volume distribution markets. TECSYS’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

Contacts

Solutions and general info: 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.