SXC third quarter revenue increases 163% to $1.3 billion

SXC Health Solutions Corp. ("SXC" or the "Company") (NASDAQ: SXCI, TSX: SXC), a leading provider of technology and pharmacy benefit management (PBM) services, announces its financial results for the three-month and nine-month periods ended September 30, 2011.

Q3 2011 Highlights

• Revenue grew 163% on a year over year basis to $1.3 billion, compared to $489.9 million in Q3 2010
• Gross profit increased 56% to $82.3 million, compared to $52.9 million in Q3 2010
• Net income increased 56% to $25.3 million, or $0.40 per share (fully-diluted), compared to $16.2 million, or $0.26 per share (fully-diluted), in Q3 2010
• Adjusted EBITDA increased 58% to $48.0 million, compared to $30.4 million in Q3 2010
• Non-GAAP adjusted earnings per share (fully-diluted), which excludes all transaction-related amortization, increased 57% to $0.44, compared to $0.28 in Q3 2010
• Adjusted prescription claim volume for the PBM segment was 23.3 million, compared to 11.9 million in Q3 2010
• Transaction processing volume for the HCIT segment was 100.1 million in the quarter
• Generic dispense rate increased to 78% compared to 76% in Q3 2010
• Successfully converted two HCIT clients to PBM services in the quarter
• Launched the industry's first automated, enhanced Coordination of Benefits service in the State Fee-For-Service Medicaid market
• Completed the acquisitions of PTRX, Inc., a full-service pharmacy benefit manager, and SaveDirectRx, Inc., its exclusive mail-order pharmacy provider, both previous clients of SXC, subsequent to the end of the period
• Signed a five-year HCIT contract renewal with Catalyst Health Solutions, Inc. (NASDAQ: CHSI), subsequent to the end of the period
• Ranked 1^st in FORTUNE Magazine's 2011 "100 Fastest-Growing Companies" list

"Q3 was another strong quarter for SXC. Cash flow from operations was strong and we achieved record EBITDA growth. We just posted our best sales year in SXC's history - more than $1.4 billion of new sales, adding over 1 million new lives under management. The Company is very well positioned moving forward," said Mark Thierer, Chairman and CEO of SXC.

Subsequent to the end of the quarter, Cigna announced the acquisition of HealthSpring, SXC's largest customer based on revenues.  HealthSpring is in the first year of a five-year contract, which has a base three year term with two one-year extensions.  SXC has met the performance obligations under the contract and expects to service HealthSpring for the duration of the agreement.