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CHICAGO, Apr 24, 2002 /PRNewswire-FirstCall via COMTEX/ —

Technology Revenue Increases 56% Over Prior Year

Healthcare Solutions, Inc. (Nasdaq: MDRX), the leading provider of point-of-care
decision support tools for physicians, announced today its results for the three
months ended March 31, 2002.

Total revenue for the three months ended March 31, 2002 was $18.8 million,
increasing by 13% over the three months ended March 31, 2001. For the three
months ended March 31, 2002, technology revenue, which includes revenue from
software and related services and information services, was $6.3 million,
increasing by 56% over the three months ended March 31, 2001.

Net loss for the first quarter was $6.0 million, or $0.16 per share, compared
with a loss of $30.8 million, or $0.83 per share for the same period last year.
The results of operations for the first quarters of 2002 and 2001 included the
amortization of intangibles of $0.2 million and $19.6 million, respectively.
Statement of Financial Accounting Standards No. 142, “Goodwill and Other
Intangible Assets”, which took effect on January 1, 2002, eliminated the
requirement to amortize goodwill. Had this accounting rule been in place in
2001, the net loss would have been $16.6 million, or $0.45 per share for the
three months ended March 31, 2001.

As of March 31, 2002, the Company’s balance of cash and marketable securities
totaled $71.7 million.

“We made solid progress across all of our business units and continued our move
toward profitability,” commented Glen Tullman, Chairman and Chief Executive
Officer of Allscripts Healthcare Solutions. “During the first quarter, we
completed 25 TouchWorks(TM) agreements and our Physicians Interactive unit had a
record quarter, maintaining its position as the leader in e-Detailing for
pharmaceutical companies.”

Tullman continued, “With the announcement of our partnership with the American
College of Physicians – American Society of Internal Medicine, which represents
over 115,000 internal medicine physicians, Allscripts will become the first
company to bring evidence-based medicine into the physician’s hands, allowing
for higher quality outcomes, and continuing our track record of bringing
innovative clinical solutions to healthcare providers.”

Allscripts will conduct a conference call on Wednesday, April 24, 2002 at 4:30
PM Eastern time. The conference call can be accessed by dialing 1-800-374-0526,
or via the Internet at A recording of the conference call
will be available for review through May 18, 2002 at or by
calling 1-800-642-1687, ID #3768440.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions is the leading provider of point-of-care
decision support solutions for physicians. The Company’s TouchWorks software
products enhance physician productivity using a wireless handheld device or
desktop workstation to automate the most common physician activities including
prescribing, capturing charges, dictating, ordering labs and viewing results,
providing patient education, and taking clinical notes. The Company also
provides medication fulfillment services. Additionally, Allscripts provides
patient compliance and healthcare product education services for physicians
through its Physicians Interactive unit. Allscripts provides services to over
20,000 physicians across the U.S.

Strategic partners include IDX Systems (Nasdaq: IDXC); IMS Health (NYSE: RX);
Microsoft (Nasdaq: MSFT); Compaq (NYSE: CPQ); Express Scripts (Nasdaq: ESRX);
and Merck-Medco.

TouchWorks is a trademark of Allscripts Healthcare Solutions. Visit Allscripts
on the Web at .

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 2001 Annual Report on
Form 10-K, available through the Web site maintained by the Securities and
Exchange Commission at .

                      Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)

March 31, December 31,
Assets 2002 2001
Current assets
Cash and cash equivalents $22,117 $34,124
Marketable securities 17,374 6,352
Accounts receivable, net 15,784 13,811
Other receivables 2,006 1,372
Inventories 5,666 6,225
Prepaid expenses and other
current assets 2,472 2,962
Total current assets 65,419 64,846

Long-term marketable securities 32,188 37,814
Fixed assets, net 7,167 8,501
Intangible assets, net 5,324 5,516
Other assets 809 767
Total assets $110,907 $117,444

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable $5,151 $5,626
Accrued expenses 3,230 3,113
Accrued compensation 1,829 2,873
Accrued restructuring and other charges 2,125 2,991
Deferred revenue 3,776 3,882
Total current liabilities 16,111 18,485

Other liabilities 264 325
Total liabilities 16,375 18,810

Stockholders’ equity 94,532 98,634

Total liabilities and
stockholders’ equity $110,907 $117,444

Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)

Three Months Ended
March 31,
2002 2001

Prepackaged medications $12,479 $12,563
Software and related services 4,439 3,322
Information services 1,855 714
Total revenue 18,773 16,599

Cost of revenue (1) 14,951 15,588
Gross profit 3,822 1,011

Operating expenses:
Selling, general and
administrative expenses 10,425 14,907
Amortization of intangibles 138 17,788
Write-off of acquired in-process
research and development – 3,000
Loss from operations (6,741) (34,684)

Interest income, net 716 1,649
Other income, net 1 135
Loss before income taxes (6,024) (32,900)

Income tax benefit – 2,099
Net loss $(6,024) $(30,801)

Per-share data – basic and diluted:
Net loss $(0.16) $(0.83)

Weighted average shares of common
stock outstanding used in computing
per-share data – basic and diluted 38,072 37,325

(1) For the three months ended March 31, 2002 and 2001, cost of revenue
includes the amortization of acquired software in connection with
acquisitions of $61 and $1,780, respectively.

(2) The following is a reconciliation of net loss and basic and diluted
loss per share reflecting the implementation of Statement of Financial
Accounting Standards No. 142, “Goodwill and Other Intangible Assets”:

Three Months Ended
March 31,
2002 2001

Reported net loss $(6,024) $(30,801)
Goodwill amortization – 14,180
Adjusted net loss $(6,024) $(16,621)

Per-share data – basic and diluted:
Reported net loss $(0.16) $(0.83)
Goodwill amortization – 0.38
Adjusted net loss $(0.16) $(0.45)


SOURCE Allscripts Healthcare Solutions, Inc.

CONTACT:          David Mullen, Chief Financial Officer, +1-847-680-3515,
Ext. 282, , or Dan Michelson, Vice President of
Marketing, +1-847-680-3515, Ext. 4330, , both of
Allscripts Healthcare Solutions


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