A numerical method based on an analytical solution to the three-dimensional two-group diffusion equation has been derived assuming that the flux is a sum of the functions of one variable. In each mesh the incoming currents are used as boundary conditions. The final equations for the average flux and the outgoing currents are of the response matrix type. The method is presented in a form that can be extended to the general multigroup case. In the SEXI computer program developed on the basis of this method, the response matrix elements are recalculated in each outer iteration to minimize the data transfer between disk storage and central memory. The efficiency of the method is demonstrated for a light water reactor (LWR) benchmark problem. The SEXI program has been incorporated into the LWR simulator SILWER code as a possible option.