TECSYS Announces Record Q4 With 36% Growth and Ten New Accounts

Fiscal Year Growth Reaches 25%

MONTREAL, QUEBEC--(Marketwire - July 8, 2008) - TECSYS Inc. (TSX:TCS - News), an industry-leading supply chain management software company announced today its results for the fourth quarter and full 2008 fiscal year ended April 30th, 2008. The results of the full 2008 fiscal year are audited. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Highlights of the Fourth Quarter include:

- Revenue increased by 36% to $10.5M in Q4 of fiscal 2008 from $7.6M in Q4 of fiscal 2007.

- Gross margin percentage increased significantly to 47% in Q4 of fiscal 2008 compared to 38% in Q4 of last fiscal year.

- Earnings from operations for the fourth quarter of fiscal 2008 increased substantially to $1,514K. Earnings from operations for the fourth quarter of fiscal 2008 included the recognition of a non-refundable tax credit from a prior fiscal period in the amount of $635K.

- EBITDA for Q4 of fiscal 2008 increased to $1,068K compared to $126K for Q4 of last fiscal year.

- After an adjustment for the fair value of asset backed commercial paper of $717K, and non cash income taxes of $635K net earnings for the fourth quarter of fiscal 2008 were $39K or $0.00 per share, compared to a loss of $125K or $0.01 per share for the fourth quarter of last fiscal year.

- At the end of the fourth quarter, backlog stood at $19.1M, up by 23% from $15.5M at the end of Q4 of last fiscal year.

- The Company generated cash from operations of $732K for the fourth quarter.

Highlights of the full 2008 fiscal year include:

- Revenue increased by 25% to $38.8M from $31M for the prior fiscal year.

- Earnings from operations were $3,742K compared to a loss of $598K for fiscal year 2007. Earnings from operations for fiscal 2008 included the recognition of a non-refundable tax credit from a prior fiscal period in the amount of $635K.

- EBITDA for fiscal year 2008 reached $3,210K compared to $446K for fiscal year 2007.

- Net earnings were $1,255K compared to a net loss of $544K for the prior fiscal year.

- The Company generated cash from operations of $2,706K for the twelve months ended April 30, 2008 compared to $772K for the prior fiscal year.

- Return on equity for the fiscal year was 8.7%.

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: "We have captured a record number of new accounts that helped drive 36% growth in Q4's revenue compared to last year. We continue to execute our plan by focusing on profitable vertical markets while rigorously managing our cost structure, resulting in strong operating profits. Looking at the full fiscal year, in spite of a $1,048K expense related to the ABCP fiasco, and a loss on exchange of $500K, we ended the year with net income of $1,255K and are pleased with these results."

During the quarter, the Company signed a significant number of agreements with existing customers and won a record number of new accounts including:

- Two major hospital supply chain networks

- One major heavy equipment dealer

- Four industrial distributors

- Three import-to-retail distributors

After accounting for an interest expense of $12K, a foreign exchange loss of $37K, a share of net loss of $74K from a company in which TECSYS has an equity interest, an increase of $717K of ABCP provision, and non-cash income taxes of $635K, net earnings for the fourth quarter were $39K. This ABCP provision relates to the asset backed commercial paper market in which TECSYS has an original $5.1M investment against which TECSYS has now taken a 20% provision. TECSYS reassesses the value of its holdings each quarter as additional information is made available, using a combination of long-term fixed interest rate plus expected spreads for similarly rated instruments and an estimated risk factor.

For the twelve months ended April 30th, 2008, revenue increased by 25% to $38.8M compared to $31M for the same period of the prior fiscal year. Earnings from operations for the twelve months of fiscal year 2008 were $3,742K. EBITDA for the twelve months increased substantially to $3,210K compared to $446K for the same period in fiscal year 2007. After accounting for an exchange loss of $500K, net interest income of $76K, a share of net loss of $110K from a company in which TECSYS has an equity interest, and a provision for ABCP holdings of $1,048K, and a non-cash income taxes of $635K, net earnings for the twelve months ended April 30th, 2008 were $1,255K or $0.09 per share compared to net loss of $544K or $0.04 per share for the same period of the prior fiscal year. Return on Equity (ROE) for fiscal year 2008 amounted to 8.7% compared to negative ROE of 4.0% for fiscal year 2007.

TECSYS' Fourth Quarter & Fiscal 2008 Earnings Conference Call:

Date: July 8, 2008

Time: 4:30 pm

Phone number: 800-215-1640 or 416-620-2013

The call can be replayed by calling 800-558-5253 (access code: 21387613) or 416-626-4100 (access code: 21387613).

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 over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

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. 2008. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

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