Allscripts Completes Acquisition of A4 Health Systems.

CHICAGO -- Company Extends Leadership Position Across All Segments in Electronic Health Record and Physician Practice Markets

Allscripts (Nasdaq:MDRX), the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare, announced today the completion of its acquisition of A4 Health Systems (A4), a leading provider of practice management and electronic health record (EHR) solutions for small and mid-sized physician groups, for approximately $215 million in cash and 3.5 million shares of Allscripts common stock and an additional working capital payment.

The acquisition of A4 doubles Allscripts' clinical software revenues as well as the size of its sales force. The acquisition also significantly expands Allscripts existing product portfolio, providing the Company with an integrated practice management solution for its award-winning TouchWorks(TM) Electronic Health Record. Additionally, Allscripts will offer A4's HealthMatics(R) integrated practice management and EHR solution to small, independent physician practices, where the majority of physicians practice and view a combined solution as a requirement. HealthMatics(R) is currently in use by more than 1,500 practices and approximately 8,000 physicians nationwide.

"This is a historic day for Allscripts and A4, as our two companies merge to create a clear leader to serve the clinical and administrative needs of medical groups across all market segments," said Glen Tullman, Chief Executive Officer of Allscripts. "In addition, we broaden our portfolio with software that automates emergency department and care management functions, both key points of connection from the hospital to the ambulatory physicians we serve and to the electronic healthcare record they use. With the experience and the expertise of more than 800 employees in the combined company, a blue chip client base across all practice sizes, and a base of nearly $200 million in annual revenue upon which to build, we have significantly accelerated our leadership position in this rapidly growing market segment. Allscripts' future has never been more promising."

John McConnell, Chief Executive Officer of A4 and founder of Medic Computer Systems, added, "It is exciting to see the market accelerating in the way that it is right now. This was the perfect time to bring our two companies together." McConnell will join the Allscripts Board of Directors following the closing and continue to be involved with marketing, sales and industry efforts. Mr. Tullman added, "John will continue to be a large shareholder in Allscripts and a key contributor at a strategic and selling level. Anytime you add that kind of expertise to our already distinguished and experienced Board, it's a real win for the Company."

David Bond, who is currently President and Chief Operating Officer of A4, will assume leadership responsibility for the A4 business unit and solutions targeted to small to medium size practices, and will report directly to Mr. Tullman. Mr. Bond has over 25 years of experience in the healthcare and computer software industry, including senior leadership roles at Medic Computer Systems before joining A4 in 1998 as Vice President of Sales and Marketing. Mr. Bond became Executive Vice President of the A4 Ambulatory Division in 2001 and was appointed President and Chief Operating Officer in 2004.

"David brings a great deal of energy and experience to the table in terms of managing all aspects of the current operation as well as significant knowledge of the markets we are going after," commented Mr. Tullman. "We are excited to have David's leadership and I'm looking forward to working closely with him to build on the success he and John created at A4."

The New Allscripts

Allscripts is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company's business groups provide unique solutions that inform, connect and transform healthcare. The Clinical Solutions Group's award-winning software applications include electronic health record, practice management, e-prescribing, document imaging, emergency department and care management solutions. Additionally, Allscripts provides clinical product education and connectivity solutions for physicians and patients through its Physicians Interactive(TM) Group and medication fulfillment services through its Medication Services Group. To learn more, visit Allscripts on the Web at www.allscripts.com.

This announcement may contain forward-looking statements about Allscripts that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts beliefs and assumptions. Forward-looking statements do not guarantee future performance. Because Allscripts cannot predict all of the risks and uncertainties that may affect it, or control the ones it does predict, Allscripts' actual results may be materially different from the results expressed in its forward-looking statements. For a more complete discussion of the risks, uncertainties and assumptions that may affect Allscripts, see the Company's 2004 Annual Report on Form 10-K, available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.