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    CHICAGO--(BUSINESS WIRE)--Aug. 19, 2004--

   Allscripts Increases Presence in Physician-Patient Communications

Allscripts Healthcare Solutions (Nasdaq:MDRX), the leading
provider of clinical software, connectivity and information solutions
that physicians use to improve healthcare, today announced the
formation of a strategic partnership with Medem, Inc., the nation’s
premier physician-patient communications network, founded and governed
by the American Medical Association and other leading medical
societies. The companies will collaborate on distribution and
expansion of interactive e-health solutions to physicians and their
patients, with a focus on electronic health records and e-prescribing.
As part of the agreement, Allscripts has acquired an equity stake in

“Medem services empower physicians to be the one-stop source for
online patient care, education and communication, and Allscripts’
products and resources will help us to increase the breadth of
services to physicians and their patients, particularly in the areas
of electronic health records and e-prescribing,” stated Ed Fotsch, MD,
Chief Executive Officer of Medem, Inc. “Our partnership with
Allscripts will help Medem expand services to our current clients and
increase our reach to more physicians and patients.”

Through its network of more than 90,000 physicians, Medem provides
secure communications and integrated Web-based services to physicians
and patients. Medem provides customizable web sites for physician
practices with integrated HIPAA-compliant secure email, fee-based
online clinical consultation software, and trusted, award-winning
clinical content from America’s leading medical societies. Consumers
can choose a physician who offers Medem’s suite of Internet-based
services from the online provider directory of most major health

“Our agreement with Medem provides distribution to an additional
90,000 physicians for our TouchScript.NET(TM) e-prescribing offering,
a stronger feature set for physician-patient connectivity in our
number one rated TouchWorks(TM) Electronic Medical Record and better
reach for our Physicians Interactive(TM) physician product education
offerings,” stated Glen Tullman, Chief Executive Officer of Allscripts
Healthcare Solutions. “As the premier physician practice-patient
communications network on the Internet, and with the backing of the
AMA and associated medical societies, Medem is a highly regarded
partner that has taken a leading role in the formation of e-health
services connecting physicians and their patients.”

Working in collaboration with Medem and its network of physicians
and their patients will bring new product and distribution
opportunities to Allscripts including:

    --  E-Prescribing Distribution: Medem will offer Allscripts
        TouchScript.NET e-prescribing as a part of their
        Internet-based secure messaging tools. Under terms of the
        agreement, Medem will market Allscripts e-prescribing
        application to its 90,000 users, providing special pricing to
        members of affiliated associations.

    --  Messaging Integration into EMR: Allscripts will integrate
        Medem's secure messaging technology into TouchWorks, its
        number one rated electronic medical record (EMR), which will
        further extend its physician-patient communication
        capabilities. This service enables two-way patient messaging
        and electronic consultations from thousands of doctors, and
        will now be a key function in TouchWorks.

“Electronic communication and information technology are becoming
increasingly important in today’s healthcare environment. The AMA is
pleased that Allscripts Healthcare Solutions is partnering with Medem
to provide physicians and healthcare professionals with needed
services in these areas,” AMA Trustee, Joseph M. Heyman, MD, said.

Under terms of the agreement, Allscripts will purchase up to $2.1
million of convertible secured promissory notes and a 3% equity
interest in Medem. At the same time, Medem management, certain related
parties and the AMA will purchase up to an additional $2.0 million of
Medem convertible secured promissory notes. Details of the investment
will be available in the Company’s Form 8-K, which will be filed with
the SEC later today.

About Medem, Inc.

Based in San Francisco, Medem incorporated in 1999 and was founded
by a group of the nation’s leading medical societies, including: the
American Academy of Ophthalmology; the American Academy of Pediatrics;
the American College of Allergy, Asthma and Immunology; the American
College of Obstetricians and Gynecologists; the American Medical
Association; the American Psychiatric Association; and the American
Society of Plastic Surgeons. There are currently 45 societies
partnering with Medem whose combined membership represents more than
two-thirds of physicians currently practicing in the United States.
Medem has created the nation’s premier physician-patient
communications network, designed to facilitate online access to
information and care for physicians, their practices and their
patients, while saving patients time and money and helping physicians
generate revenue. Medem’s offers customizable practice Web sites
including HIPAA-compliant Secure Messaging and Online Consultation
(fee-based clinical consultation service), as well as trusted, award
winning clinical content from America’s leading medical societies.
Visit Medem on the Web at

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions is the leading provider of
clinical software, connectivity and information solutions that
physicians use to improve healthcare. The Company’s TouchWorks(TM)
software is a modular Electronic Medical Record (EMR) that enhances
physician productivity by automating the most common physician
activities including prescribing, dictating, capturing charges,
ordering labs and viewing results, providing patient education, and
documenting clinical encounters. TouchWorks is available on the latest
Tablet PCs, wireless handheld devices, desktop workstations and over
the Internet. Allscripts also offers electronic document imaging and
scanning solutions through its Advanced Imaging Concepts subsidiary.
Additionally, Allscripts provides healthcare product education and
market research programs for physicians through its Physicians
Interactive business unit and medication fulfillment services through
its Allscripts Direct(TM) unit. Visit Allscripts on the Web at

Strategic partners include IDX Systems; IMS Health ; Microsoft;
Hewlett-Packard Company; and Medco Health.

This announcement may contain forward-looking statements about
Allscripts Healthcare Solutions 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 2003
Annual Report on Form 10-K, available through the Web site maintained
by the Securities and Exchange Commission at

    CONTACT: Allscripts Healthcare Solutions
             Dan Michelson, 847-680-3515, Ext. 4330
             Paul Peterson, 847-680-3515, Ext. 4475

    SOURCE: Allscripts Healthcare Solutions
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