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CHICAGO, May 02, 2006 (BUSINESS WIRE) — 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 ended March 31, 2006.

Total revenue for the three months ended March 31, 2006 was a
record $42.2 million, compared to $26.2 million for the same period
last year. Revenue from software and related services for the three
months ended March 31, 2006 was a record $28.3 million, compared to
$14.3 million for the same period last year, increasing by
approximately 98%.

Gross margin percentage was 47.7% for the first quarter of 2006,
compared to 46.4% during the first quarter of 2005.

On March 2, 2006, Allscripts finalized the acquisition of A4
Health Systems, Inc. The Company’s results for the three months ended
March 31, 2006 include A4’s results for March.

Cash earnings for the period ended March 31, 2006 was $6.4
million, or $0.13 per diluted share, compared to $2.9 million, or
$0.07 per diluted share, for the same period last year, an increase of
approximately 117%. Cash earnings are comprised of operating income
giving effect to the add-back of depreciation and amortization,
stock-based compensation, one-time A4 integration costs, and net
interest income or expense. A reconciliation of cash earnings and cash
earnings per diluted share to GAAP earnings and GAAP earnings per
diluted share is included as part of this press release.

Net income for the three-months ended March 31, 2006 was $1.3
million, or $0.03 per diluted share, compared to net income of $1.3
million, or $0.03 per diluted share, for the same period last year.

As of March 31, 2006, the Company had cash and marketable
securities of $66.8 million. This amount reflects $141 million of net
proceeds received in February 2006 related to the issuance of 8.4
million shares of Allscripts common stock, a total of approximately
$231 million paid in connection with the acquisition of A4, and $21.1
million paid to IDX Investment Corporation, a wholly owned subsidiary
of GE, to repurchase 1.25 million shares of Allscripts common stock.

“Our first quarter results confirm the continuing momentum for our
solutions in the market,” said Glen Tullman, Chief Executive Officer
of Allscripts. “In addition, our acquisition of A4 Health Systems,
which we announced and completed during the quarter, adds
substantially to our market position, supplements our sales,
accelerates earnings, and doubles the size of our sales force, while
broadening our product portfolio and opening up new markets for us.
The bottom line is that our leadership position in the market has
never been more solid and our ability to deliver has never been more
promising.”

Allscripts will conduct a conference call on Tuesday, May 2, 2006
at 4:30 PM eastern time. The conference call can be accessed by
dialing 1-888-644-5594, or via the Internet at www.allscripts.com. A
recording of the conference call will be available for review through
May 16, 2006, at www.allscripts.com or by calling 1-800-642-1687, ID #
8102313.

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 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 at
www.allscripts.com.

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 2005
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)

                                            March 31,    December 31,
Assets                                         2006          2005
---------                                  ------------  ------------

 Current assets:
  Cash and cash equivalents                    $35,225       $60,905
  Marketable securities                         13,726        54,408
  Accounts receivable, net                      43,366        29,244
  Other receivables                                162           502
  Deferred taxes, net                            7,200             -
  Inventories                                    4,063         2,174
  Prepaid expenses and other current
   assets                                        6,877         5,811
                                           ------------  ------------
          Total current assets                 110,619       153,044

 Long-term marketable securities                17,812        30,750
 Fixed assets, net                              12,182         2,753
 Software development costs, net                 6,777         6,409
 Deferred taxes, net                            28,232             -
 Intangible assets, net                         86,907         9,151
 Goodwill                                      181,104        13,760
 Other assets                                    5,779         5,097
                                           ------------  ------------
          Total assets                        $449,412      $220,964
                                           ============  ============


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

 Current liabilities:
  Accounts payable                             $12,144        $8,630
  Accrued liabilities                           22,048        13,791
  Deferred revenue                              37,459        17,306
  Current portion of long-term debt                243             -
                                           ------------  ------------
          Total current liabilities             71,894        39,727

 Long-term debt                                 85,637        82,500
 Other liabilities                                 309           318
                                           ------------  ------------
          Total  liabilities                   157,840       122,545


 Stockholders' equity                          291,572        98,419
                                           ------------  ------------

          Total liabilities and
           stockholders' equity               $449,412      $220,964
                                           ============  ============


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


                                               Three Months Ended
                                                    March 31,
                                                2006         2005
                                            -----------  -----------

Revenue:
  Software and related services                $28,314      $14,310
  Prepackaged medications                       11,510        9,835
  Information services                           2,380        2,050
                                            -----------  -----------
  Total revenue                                 42,204       26,195

Cost of revenue:
  Software and related services                 11,481        5,124
  Prepackaged medications                        9,326        7,723
  Information services                           1,272        1,181
                                            -----------  -----------
  Total cost of revenue                         22,079       14,028
                                            -----------  -----------

Gross profit                                    20,125       12,167

Operating expenses:
  Selling, general and
   administrative expenses                      16,401       10,357
  Stock-based compensation expense                 407            -
  Amortization of intangibles                    1,370          436
                                            -----------  -----------
 Income from operations                          1,947        1,374

Interest expense                                  (895)        (907)
Interest income                                  1,199          877
Other expense, net                                (118)         (10)
                                            -----------  -----------
Income before income taxes                       2,133        1,334

Income taxes                                       810            -
                                            -----------  -----------
Net income                                      $1,323       $1,334
                                            ===========  ===========

Net income per share - basic                     $0.03        $0.03
                                           ============  ===========

Net income per share - diluted                   $0.03        $0.03
                                           ============  ===========

Weighted average shares of common
 stock outstanding used in computing
 basic net income per share                     44,903       39,073
                                           ============  ===========

Weighted average shares of common stock
 outstanding used in computing
 diluted net income per share                   47,974       42,171
                                           ============  ===========


                 Allscripts Healthcare Solutions, Inc.
          Reconciliation of Non-GAAP Measure of Cash Earnings
                      and Cash Earnings Per Share
           (amounts in thousands, except per-share amounts)
                              (Unaudited)

                                               Three Months Ended
                                                    March 31,
                                                2006         2005
                                            -----------  -----------

Net income                                      $1,323       $1,334

Add back:
Income taxes                                       810            -
Interest income (expense) and other, net          (186)          40
                                            -----------  -----------

Operting income                                  1,947        1,374

Add back:
Depreciation and amortization                    2,703        1,600
Stock-based compensation                           407            -
A4 Health Systems integration costs              1,021            -
                                            -----------  -----------

Adjusted operating income                       $6,078       $2,974
                                            ===========  ===========

Interest income (expense), net                     304          (30)
                                            ------------------------

Cash earnings                                   $6,382       $2,944
                                            ===========  ===========

Cash earnings per share - basic                  $0.14        $0.08
                                            ===========  ===========

Cash earnings per share - diluted                $0.13        $0.07
                                            ===========  ===========

Weighted average shares of common stock
 outstanding used in computing basic
 cash earnings per share                        44,903       39,073
                                            ===========  ===========

Weighted average shares of common stock
 outstanding used in computing diluted
 cash earnings per share                        47,974       42,171
                                            ===========  ===========

SOURCE: Allscripts

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