SXC Health Solutions enters into contracts to support South Dakota's Medicaid program

    - Company to provide industry-leading PBM technology solutions and
               PBM services for the State's Medicaid program -

    LISLE, IL, Sept. 12 /CNW/ - SXC Health Solutions Corp. ("SXC") (NASDAQ:  
SXCI, TSX: SXC), a leading provider of pharmacy benefits management ("PBM")
services and healthcare IT solutions to the healthcare benefits management
industry, today announced two contracts for its HealthCare Information
Technology ("HCIT") Group in support of the State of South Dakota (the
    The first is an agreement between SXC's HCIT group and Client Network
Services, Inc, ("CNSI") for approximately $10 million over three years. Under
terms of the agreement, SXC will provide software licenses and implementation
services to the South Dakota Department of Social Services for two years
during the deployment of the State's new Medicaid Management Information
System ("MMIS"), followed by one year of software maintenance services. SXC
will supply the State with PBM technology solutions to support pharmacy claims
processing, Medicaid rebate invoicing and sophisticated pharmacy claims Prior
Authorization workflow and processing.
    "We are pleased to expand our presence in the public sector with the
State of South Dakota," said Mark Thierer, President and CEO of SXC. "Our
strategy is to provide a variety of healthcare payor organizations in the
pharmaceutical supply chain with the technology and pharmacy benefit services
to contain the cost of pharmaceuticals and improve patient care. The public
sector has emerged as an important growth market for SXC as our broad suite of
services and flexible deployment capabilities are ideally suited to all types
of State Medicaid programs."
    "We selected SXC as our pharmacy partner due to its experience and
success in deploying Medicaid pharmacy benefit systems," said Jeff Gottlieb,
VP of HHS Account Management, CNSI. "We look forward to working with SXC in
helping the State deliver better quality healthcare to its Medicaid
    "We are pleased to play a key role in updating the State's MMIS Drug
Claims processing solution," said Mike Bennof, EVP HCIT for SXC. "The State
will have access to the most modern technology available for administering
their Medicaid Drug Benefit program."
    The second contract is between SXC's HCIT group and the State of South
Dakota. Under terms of the three-year contract, SXC will provide the State
with State Maximum Allowable Cost ("SMAC") list design, development and
management in order to support their Medicaid pharmacy program.
    These contracts represent another opportunity for SXC to provide PBM
technology solutions to a State Medicaid program. With this announcement, SXC
is now supporting Medicaid programs in five States: South Dakota, Vermont,
Georgia, Tennessee, and Washington.

    About South Dakota Medicaid Program

    The South Dakota Medicaid program serves approximately 110,000 low-income
children, pregnant women and disabled South Dakotans, with an annual budget of
$700 million.

    About SXC Health Solutions Corp.

    SXC Health Solutions Corp. is a leading provider of pharmacy benefits
management (PBM) services and Health Care Information Technology (HCIT)
solutions to the healthcare benefits management industry. The Company's
product offerings and solutions combine a wide range of software applications,
application service provider (ASP) processing services and professional
services, designed for many of the largest organizations in the pharmaceutical
supply chain, such as Federal, provincial, and, state and local governments,
pharmacy benefit managers, managed care organizations, retail pharmacy chains
and other healthcare intermediaries. SXC is headquartered in Lisle, Illinois
with 13 locations in the US and Canada. For more information please visit

    %SEDAR: 00001439E

For further information:

For further information: Jeff Park, Chief Financial Officer, SXC Health
Solutions, Inc., Tel: (630) 577-3206,; Dave Mason, Investor
Relations - Canada, The Equicom Group Inc., (416) 815-0700 ext. 237,; Susan Noonan, Investor Relations - U.S., The SAN
Group, LLC, (212) 966-3650,

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