Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2005-16

TECSYS Inc. Demonstrates Continued High Growth – Achieves 63% Increase in Revenues

MONTREAL, November 29, 2005 — TECSYS Inc. (TSX: TCS) an industry-leading Supply Chain Management (SCM) software company announced today its financial results for the second quarter of fiscal 2006 ending October 31st, 2005. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) with a reconciliation to the United States GAAP and are unaudited.

Financial highlights for the three months include:

• Revenue increased to $9.0M from $5.5M in the same quarter of last year, a 63% increase.
• Product revenue increased to $3.7M from $1.8M in Q2 of the previous fiscal year, an increase of 102%.
• Services revenue increased to $5.0M from $3.4M in Q2 of the previous fiscal year, an increase of 46%.
• Net loss for the quarter was $166,000 compared to net loss of $316,000 for the same period in the previous year.
• Cash increased to $7.0M compared to $6.7M at the end of the prior fiscal quarter.

Financial highlights for the six months include:

• Revenue for the first half increased to $17M from $10.8M in the comparable period of last year, an increase of 57%.
• Product revenue increased to $6.7M from $3.6M in the first half of the previous year, an increase of 87%.
• Services revenue increased to $9.9M from $6.9M in the first half of the previous year, an increase of 45%.
• Net Earnings for the first half were $59,000 compared to net loss of $180,000 for the same period in the previous year.

“The combination of organic and acquisition-related growth has resulted in a tremendous increase in revenue this quarter, led by a 102% increase in product sales. We are continuing our drive for customer acquisition and increasing our share of the supply chain management software market” said Peter Brereton, President and Co-CEO of TECSYS Inc.

Other key achievements in the second fiscal quarter include:

• TECSYS signed 6 new clients for its products and services including:
  • A major distributor for the world's leading manufacturer of construction and mining equipment
    
  • A Quebec-based, world-class developer and manufacturer of ammunition
    
  • A global children’s publishing and media company
    
  • A distributor of plastic bags and packaging products in Ohio
    
  • A medical/Medicaid products distributor
    
  • A Third Party Logistics services provider in California

• The Company also signed a significant number of product upgrades for all of its product lines and has successfully completed the deployment of its solutions in a number of accounts during the quarter.

Revenues in the second quarter of fiscal 2006 increased 63% to $9.0M compared to $5.5M in the same period of fiscal 2005. Loss from operations for the reporting quarter was $131K compared to earnings from operations of $44K in the corresponding quarter of last year. Income from operations was impacted, by $166K, due to the strengthening of the Canadian dollar of approximately 8% compared to the same period of last fiscal year. After accounting for the exchange loss of $62K and net interest income of $27K, net loss for the quarter was $166K or $0.01 per share compared to net loss of $316K or $0.02 per share for the same period in the previous year.

For the six months ending October 31, 2005, revenues increased 57% to $17.0M compared to $10.8M in the same period of the prior fiscal year. As a result of the strengthening of the Canadian dollar of approximately 9% compared to the same period of last fiscal year, earnings from operations were negatively impacted by $324K. Despite unfavourable exchange of $324K, earnings from operations for the reporting six months were $132K compared to $179K in the corresponding period of fiscal 2005. Net earnings for the first half of fiscal year 2006 were $59K or $0.00 per share compared to net loss of $180K or $0.01 per share for the same period in fiscal 2005.

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

Mr. Berty Ho-Wo-Cheong
Vice President, Finance & Administration and Chief Financial Officer
berty.ho@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.