MONTREAL, June 30 /CNW Telbec/ - TECSYS Inc. (TSX: TCS) announced today that, due to an interpretation of the method and timing of revenue recognition required by Statement of Position 97-2 - Software Revenue Recognition, and after having consulted with its auditors, it has determined that a restatement of prior years' financial results may be necessary. During Fiscal Year 2002, TECSYS changed its standard License Agreement to make annual support mandatory. This was to ensure that all TECSYS software in use in its clients' businesses is well supported. This licensing approach has now been used for five consecutive fiscal years. During the process of preparing the 2006 year end financial statements, it was determined, that according to SOP 97-2, TECSYS may require a restatement of revenue and related cost with the result that this revenue and cost be recognized over the useful life of the software application rather than at the time of delivery. Management is currently reviewing the terms of these License Agreements to quantify the impact on the financial statements for the years affected. Management currently believes that financial results for the financial years ended April 30, 2002 to 2006 may be affected. Any restatement may have a negative impact on previous years' revenues and earnings but will have no impact on previously reported cash from operations. Furthermore, any changes to prior years' revenue and cost will be allocated to subsequent years. Management is working to complete this review as expeditiously as possible. Additional information will be forthcoming as available. Management will make every effort to keep our shareholders informed on a timely basis. About TECSYS ------------ TECSYS is a leading, fast-growing 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. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.