NMHS Adopts Self-Distribution With TECSYS' Software, Saves $14.5 Million & Increases Supplies Fill Rate to 99.98% for its Hospital Network

MONTREAL, QUEBEC--(Marketwire - Jan. 14, 2009) - North Mississippi Health Services (NMHS), a diversified regional healthcare organization, has adopted a self-distribution strategy with TECSYS' (TSX:TCS - News) EliteSeries warehouse management software for healthcare, enabling it to reduce hospital supplies cost by as much as $14.5 million to date while significantly improving delivery of healthcare products to its hospital network.

NMHS' service area covers two states; it includes six hospitals, one surgery center, 32-owned clinics, four nursing homes, a home health agency and 23 school health centers. In fiscal year 2008 (October, 2007 through September, 2008), NMHS admitted over 36,000 patients and over 123,000 cases in the ER. Coordinating care over such a wide area and in so many settings is one of the supply chain system's key challenges.

Prior to selecting TECSYS, NMHS had a small inventory control facility with a significant number of manual processes that were not in keeping with the organization's high quality and professional staff. NMHS saw a great potential for eliminating redundant steps and improving inventory management by altering the distribution management process and going directly to manufacturers. A disintermediation process that immediately paid off!

With its self-distribution strategy enabled through the TECSYS software, NMHS is now in control of its own destiny by managing products in their supply chain, from cradle to grave. NMHS has also reduced product, operating and excessive costs associated with the purchasing, warehousing and delivery of supplies. Cost reductions to date are up to $14.5 million and an additional $8 million annually, while fill rate increased to 99.98%. Furthermore, the hospital gained large, unexpected operating benefits because the system eliminated the erratic hospital order pattern of the past. As a result, Hospital personnel were redeployed into patient care.

"We are now buying in bulk from manufacturers compared to small quantities from distributors in the past," stated Mike Switzer, Corporate Supply Chain Officer of NMHS. "As a result, we have reduced our cost anywhere from 3% to over 25% on individual items and improved our fill rate. Also, we have significantly reduced our shipping cost, for example, we used to buy items by the each, such as an implant screw and have it delivered over-night, which is a double-edge sword: 1) the high cost of buying one of anything and 2) the high cost of overnight shipment. With proper planning and a good inventory management system you can virtually eliminate both!"

For more information about NMHS case study: http://www.tecsys.com/solutions/success/NMHS.pdf

About NMHS:

North Mississippi Health Services is a diversified regional healthcare organization, which serves 22 counties in north Mississippi and northwest Alabama from headquarters in Tupelo, MS. The NMHS organization covers a broad range of acute diagnostic and therapeutic services, offered through North Mississippi Medical Center in Tupelo; a community hospital system with locations in Eupora, Iuka, Pontotoc, West Point, MS, and Hamilton AL.; North Mississippi Medical Clinics, a regional network of more than 30 primary and specialty clinics; and nursing homes. NMHS offers a comprehensive portfolio of managed care plans. Educational programs and early intervention are important aspects of our services, but our main focus is to provide convenient access to quality healthcare. NMHS works to achieve its corporate mission to improve the health of the people of this region by providing conveniently accessible, cost-effective healthcare of the highest quality.

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.

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, 2008. 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. 2009. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

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