In weakly bound exotic nuclei, number of excited bound states or narrow resonances is small and, moreover, they couple strongly to the particle continuum. Hence, these systems should be described in the quantum open system formalism which does not artificially separate the subspaces of (quasi-) bound and scattering states. The Shell Model Embedded in the Continuum provides a novel approach which solves this problem. Examples of application in sd-shell nuclei will be presented.