DAOU Systems Stock Begins Listing on OTC Bulletin Board Under Symbol DAOU.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 24, 2001

DAOU Systems Inc. today reported that it has received notice from The Nasdaq Stock Market ("Nasdaq") that its common stock will be traded and quoted on the OTC Bulletin Board ("OTC"), under the symbol DAOU, effective immediately.

The company's stock previously had been quoted on The Nasdaq National Market, but DAOU was informed by the Nasdaq in the fourth quarter of 2000 that the company was no longer in compliance with the $1 minimum bid price requirement for continued listing on The Nasdaq National Market as set forth in Marketplace Rule 4450(a)(5). The company appealed Nasdaq's decision at a hearing in Washington, D.C., on March 28, but DAOU's request to remain listed on the National Market or Small Cap Market until it could restore its stock price to the minimum bid price requirement level was denied. DAOU was notified after the close of trading on April 24, 2001, of the decision by Nasdaq.

According to Neil Cassidy, executive vice president and chief financial officer, the Nasdaq decision will not impact in any way the daily business of the company. "Our goal today is to improve the company's performance and restore market and shareholder confidence," Cassidy said. "The fact that our stock will now be quoted on the OTC instead of Nasdaq does not change our belief that there is enough time on the clock and money in the bank to achieve our objective of ultimately returning to profitability."

About DAOU (www.daou.com)

DAOU Systems Inc. performs applications consulting and implementation, traditional network services, remote help desk and related technology support services, and integrates legacy systems with emerging technologies, such as wireless and other portable computing solutions for the U.S. health care industry. DAOU has provided services to more than 1,300 health care organizations, including many of the nation's top 100 integrated delivery systems and middle-market payer organizations.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are only predictions and actual events or results may differ materially. Forward-looking statements usually contain the word "estimate," "anticipate," "believe," "expect," "plan" or similar expressions. The forward-looking statements included herein are based on current expectations and certain assumptions and entail various risks and uncertainties, including risks and uncertainties relating to: the company's ability to obtain new customer contracts; the management and integration of the company's operations as it implements its corporate reorganization; the ability of the company to successfully execute strategies for realizing full shareholder value; and the effects of health care industry consolidation and changes in the health care regulatory environment on existing customer contracts and the company's ability to obtain new customer contracts. These uncertainties and risk factors and the matters set forth in the company's Annual Report on Form 10-K under the caption "Risk Factors" and its other SEC filings could cause actual results to differ materially from those indicated by these forward-looking statements.