Press Release

FOR IMMEDIATE RELEASE Ref. #NRE2007-17

TECSYS Winning Momentum Continues
With Key New Customers and Improved Earnings

MONTREAL, September 11, 2007 —TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2008, ended July 31st, 2007. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.

Highlights of the First Quarter include:

• Revenue was $7.8M in Q1 of fiscal year 2008, the same as Q1 for last fiscal year.
• Deferred license revenue was $2.2M at the end of the first quarter of fiscal 2008, up from $1.7M at the end of the fourth quarter of fiscal year 2007; an increase of $456K, and up from $1.0M at the end of the first quarter of fiscal year 2007; an increase of $1.2M.
• Earnings from operations for the quarter were $141K compared to loss from operations of $256K for the same quarter of last fiscal year.
• EBITDA for Q1, 2008 substantially improved to $300K compared to $52K for Q1, 2007.
• Net earnings for the quarter were $82K or $0.01 per share after a loss on foreign exchange of $128K compared to net loss of $174K or $0.01 per share for the first quarter of last fiscal year.
• Gross margin percentage increased to 44% in Q1 of fiscal year 2008 compared to 40% in Q1 of last fiscal year. Gross margin improvement reflects an increase in gross margins of both products and services compared to the same period in last fiscal year.
• Total operating expenses for the first quarter of fiscal year 2008 decreased by $81K to $3.3M or 2%, compared to $3.4M for the same quarter of last fiscal year.
• At the end of the quarter, backlog stood at $16.0M, up from $15.5M at the end of Q4 of the prior fiscal year.
  

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: “Q1 reflects the continued improvement to our financial results that have seen a major shift to profitability during the last three quarters. Our EBITDA is up substantially in Q1 of 2008 compared to Q1 of 2007 and we continued to generate cash. I am particularly pleased with the wins in the markets where we have focused and it is clearly reflected in the substantial growth in deferred licence revenue. The successful deployment of a record number of key accounts in healthcare, heavy equipment dealers and high volume distributors that went live on our solutions in this quarter also demonstrates our success in these market segments.”

The Company signed five new customers, including:

• A major heavy equipment dealer in the U.S.
• An import-to-retail distributor in Idaho
• A leading supplier of packaging products in Alberta
• A 35-clinic regional healthcare organization in Mississippi
• A University in Western Canada

» View the Q1 Financial Statements ( 84 Kb)

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, 2007. 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).

Copyright © TECSYS Inc. 2007. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.