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CHICAGO–(BUSINESS WIRE)–Jan. 31, 2006–Allscripts (Nasdaq:MDRX),
the leading provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare, today
announced results for the three months and year ended December 31,
2005.

Total revenue for the three months ended December 31, 2005 was
$34.2 million, compared to $26.3 million for the same period last
year. Revenue from software and related services for the three months
ended December 31, 2005 was $18.2 million, compared to $14.3 million
for the same period last year, increasing by 28%.

Gross margin percentage was 45.5% for the fourth quarter of 2005,
compared to 46.9% during the fourth quarter of 2004.

Net income for the three months ended December 31, 2005 was $3.4
million, or $0.08 per diluted share, compared to net income of $1.4
million, or $0.03 per diluted share, for the same period last year, a
net income increase of 143%. As previously disclosed, net income for
the three months ended December 31, 2005 includes a non-cash,
non-recurring stock-based compensation charge related to the
acceleration of certain options amounting to approximately $0.5
million. Without this charge, diluted earnings per share for the
fourth quarter 2005 would have been $0.09. A reconciliation of
earnings per share excluding the option acceleration expense to GAAP
earnings per share is included as part of this press release.

As of December 31, 2005, the Company had cash and marketable
securities of $146.1 million.

“In 2005, the market for clinical automation continued to
accelerate as the electronic health record became part of the ‘black
bag’ of medicine. Allscripts played a leadership role in driving this
transformation and our record results show that we continue to gain
traction,” stated Glen Tullman, Chief Executive Officer of Allscripts.
“The Company has never been better positioned and our pending
acquisition of A4 Health Systems will result in Allscripts being the
clear leader across all segments of the ambulatory market. I
appreciate our clients continued support and am very proud of our team
and the progress we made during the year towards our vision of
becoming an indispensable part of the way physicians practice
medicine.”

Total revenue for the year ended December 31, 2005 was $120.6
million, compared to $100.8 million for 2004. Revenue from software
and related services for the year ended December 31, 2005 was $65.2
million, compared to $44.1 million for 2004, increasing by 48%.

Total gross margin percentage was 45.5% for the year ended
December 31, 2005, compared to 42.3% for the year ended December 31,
2004.

Net income for the year ended December 31, 2005 was $9.7 million,
or $0.23 per diluted share, compared to net income of $3.1 million, or
$0.07 per diluted share, for 2004, a net income increase of 212%.
Without the option acceleration expense recognized in the fourth
quarter of 2005, diluted earnings per share would have been $0.24 for
2005.

Allscripts offered the following general guidance related to 2006,
excluding any potential impact from the proposed acquisition of A4
Health Systems. The Company’s total revenue target for 2006 is
expected to exceed $145 million. It anticipates that earnings per
share will be in the range of $0.45 to $0.47 per diluted share, which
excludes additional stock-based compensation expense.

Allscripts will conduct a conference call on Tuesday, January 31,
2006 at 4:30 PM eastern time. The conference call can be accessed by
dialing 1-800-374-0526, or via the Internet at www.allscripts.com. A
recording of the conference call will be available for review through
February 14, 2006, at www.allscripts.com or by calling 1-800-642-1687,
ID # 4715321.

About 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 clinical software applications include
Electronic Health Record, e-prescribing and document imaging
solutions. Additionally, Allscripts provides clinical product
education and connectivity solutions for physicians and patients
through its Physicians Interactive(TM) Group and medical 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, including statements
involving our pending acquisition of A4 Health Systems, Inc. and
guidance related to 2006. 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.

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

                                             December 31, December 31,
Assets                                          2005         2004
------                                       ------------ ------------

 Current assets:
  Cash and cash equivalents                      $60,905      $16,972
  Marketable securities                           54,408       22,796
  Accounts receivable, net                        29,244       21,382
  Other receivables                                  502          627
  Inventories                                      2,174        2,372
  Prepaid expenses and other current assets        5,811        3,571
                                             ------------ ------------
          Total current assets                   153,044       67,720

 Long-term marketable securities                  30,750       88,471
 Fixed assets, net                                 2,753        2,366
 Software development costs, net                   6,409        6,270
 Intangible assets, net                            9,151       10,833
 Goodwill                                         13,760       13,713
 Other assets                                      5,097        4,804
                                             ------------ ------------
          Total assets                          $220,964     $194,177
                                             ============ ============


Liabilities and Stockholders' Equity
------------------------------------

 Current liabilities:
  Accounts payable                                $8,630       $5,981
  Accrued liabilities                             13,791       12,218
  Deferred revenue                                17,306       14,607
                                             ------------ ------------
          Total current liabilities               39,727       32,806

 Long-term debt                                   82,500       82,500
 Other liabilities                                   318          178
                                             ------------ ------------
          Total  liabilities                     122,545      115,484


 Stockholders' equity                             98,419       78,693
                                             ------------ ------------

          Total liabilities and stockholders'
           equity                               $220,964     $194,177
                                             ============ ============



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

                                 Three Months Ended For the Year Ended
                                      December 31,      December 31,
                                     2005     2004     2005     2004
                                   -------- -------- -------- --------

Revenue:
      Prepackaged medications      $12,789   $9,342  $45,609  $44,733
      Software and related services 18,249   14,306   65,166   44,121
      Information services           3,159    2,665    9,789   11,916
                                   -------- -------- -------- --------
           Total revenue            34,197   26,313  120,564  100,770

Cost of revenue:
      Prepackaged medications       10,873    7,317   38,046   35,744
      Software and related services  6,908    5,154   23,507   15,858
      Information services             849    1,506    4,136    6,520
                                   -------- -------- -------- --------
           Total cost of revenue    18,630   13,977   65,689   58,122
                                   -------- -------- -------- --------

Gross profit                        15,567   12,336   54,875   42,648

Operating expenses:
      Selling, general and
       administrative expenses      11,510   10,337   43,304   37,653
      Stock-based compensation
       expense                         558        -      604        -
      Amortization of intangibles      436      441    1,744    1,752
                                   -------- -------- -------- --------
           Income from operations    3,063    1,558    9,223    3,243

Interest expense                      (880)    (884)  (3,516)  (1,717)
Interest income                      1,230      802    4,128    1,675
Other expense, net                     (10)     (73)    (125)     (93)
                                   -------- -------- -------- --------
Income before income taxes           3,403    1,403    9,710    3,108

Income taxes                             -        -        -        -
                                   -------- -------- -------- --------
Net income                          $3,403   $1,403   $9,710   $3,108
                                   ======== ======== ======== ========

Net income per share - basic         $0.08    $0.04    $0.24    $0.08
                                   ======== ======== ======== ========

Net income per share - diluted       $0.08    $0.03    $0.23    $0.07
                                   ======== ======== ======== ========

Weighted average shares of common
 stock outstanding used in
 computing basic net income
 per share                          40,812   38,484   40,045   38,979
                                   ======== ======== ======== ========

Weighted average shares of common
 stock outstanding used in
 computing diluted net income per
 share                              43,890   41,439   43,068   41,592
                                   ======== ======== ======== ========

Earnings per share reconciliation:
Net income, as reported-GAAP
 (unaudited)                        $3,403   $1,403   $9,710   $3,108

Add: Stock-based compensation
 charge for acceleration of options    518        -      518        -
                                   -------- -------- -------- --------

Net income excluding stock-based
 compensation charge                $3,921   $1,403  $10,228   $3,108
                                   ======== ======== ======== ========

Net income per share excluding
 stock-based compensation charge -
 basic                               $0.10    $0.04    $0.26    $0.08
                                   ======== ======== ======== ========

Net income per share excluding
 stock-based compensation charge -
 diluted                             $0.09    $0.03    $0.24    $0.07
                                   ======== ======== ======== ========

    CONTACT: Allscripts
             Dan Michelson, 312-506-1217
             dan.michelson@allscripts.co
             or
             Bill Davis, 312-506-1211
             bill.davis@allscripts.com

    SOURCE: Allscripts
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