Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2007-06

TECSYS Inc. Announces Net Income of $436K for Q3, 2007—Earnings per share of $0.03

MONTREAL, February 27, 2007 — TECSYS Inc. (TSX: TCS), an industry-leading Supply Chain Management software company announced today its financial results for the third quarter of fiscal year 2007 ended January 31st, 2007. 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. All comparable figures for the prior periods have been restated as per TECSYS' August 15th, 2006 press release.

Highlights for the third quarter include:

• Total Gross margin increased to 40%, up from 35% in the comparable quarter of last year
• EBITDA was $679K, up from $41K in the comparable quarter of the prior year
• Earnings from operations were $256K, up from a loss of $6K in the comparable quarter of last year
• Cash from operations amounted to $730K, up from $532K in the comparable quarter of last year
• Net Earnings were $436K or 3 cents per share
• Revenue was $7.9 million, down from $9.5 million in the comparable quarter of last year, due mainly to lower third party products, but up by 4% over the prior quarter.
• Backlog amounted to $14.2M, up from $13.9 at the end of the prior quarter.
• The Company signed four new customers that include:
  • Wagner Equipment Co., a major Caterpillar® dealer based in Denver, Colorado
  • Two distributors of industrial gases & equipment in the U.S.
  • A New York-based import to retail distributor
• The Company also signed a number of product upgrades and its services’ organization has successfully completed the deployment of its solutions in a number of accounts during the quarter, one of which is Floors-2-Go, the largest Floor Covering Retailer in the U.K.

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: “We made significant progress during the quarter on a number of fronts. Operating and net income improved substantially. We have generated $730K cash from operations, bringing our cash position to $4.6M and eliminated our long term debt with a final repayment of $412K. We also reduced our DSO (Day’s Sales Outstanding) substantially to 74 days from 88 days at the end of this year’s 2nd quarter. Our customers continue to invest in our products and services and we won some great new accounts during the quarter as well. In summary, this was a solid quarter, and we remain committed to continuing the transformation of TECSYS with a focus on profitability and growth.”

Revenue in the third quarter of fiscal 2007 decreased by 17% to $7.9M compared to $9.5M in the same period of fiscal year 2006. Earnings from operations for the reporting quarter were $256K compared to net loss from operations of $6K for the same period in the previous fiscal year. Net earnings for the quarter were $436K or $0.03 per share compared to net loss of $222K or $0.02 per share for the same period in last fiscal year.

For the nine months ended January 31st, 2007, revenue decreased 12% to $23.3M compared to $26.4M in the same period of the prior fiscal year. Loss from operations for the first nine months of fiscal 2007 was $644K and includes two major elements: $234K restructuring charges that took effect in the second quarter, and $380K due to the continuing strengthening of the Canadian dollar of approximately 6% compared to the same period of last fiscal year. Earnings from operations for the comparable period in fiscal year 2006 were $115K. After accounting for an exchange gain of $163K, net interest income of $113K and a net share of loss and amortization of intangible assets of $61K from a company in which TECSYS has an equity interest, net loss for the nine months of fiscal year 2007 was $429K or $0.03 per share compared to net loss of $174K or $0.01 per share for the same period in the previous fiscal year.

TECSYS also announced that it has received a favourable ruling from the Ministère du Revenu du Québec confirming that its common shares are eligible as valid shares for the SME Growth Stock Plan. The common shares of TECSYS have been included on the list of the Autorité des Marchés Financiers (AMF) of corporations eligible for the SME Growth Stock Plan.

As a result of being on the AMF list, an individual that has withdrawn shares qualifying under the SME Growth Stock Plan from such plan, can acquire common shares of TECSYS Inc. on the secondary market to include it in the SME Growth Stock Plan to replace such withdrawn shares.

» View the Q3 Financial Statements (85Kb)

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 about 800 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.

Contact

Solutions and general info: info@tecsys.com
Investor relations: investor@tecsys.com
Media relations: media@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. 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, 2006. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).

All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.