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CHICAGO–(BUSINESS WIRE)–Oct. 26, 2004–Allscripts Healthcare
Solutions, Inc. (NASDAQ:MDRX), the leading provider of clinical
software, connectivity and information solutions that physicians use
to improve healthcare, announced its results for the three and nine
months ended September 30, 2004.

Total revenue for the three months ended September 30, 2004, was
$25.7 million, compared to $22.5 million for the three months ended
September 30, 2003. Revenue from software and information services for
the three months ended September 30, 2004, was $13.9 million,
increasing by 21% over the comparable period last year.

Net income for the three months ended September 30, 2004, of $0.7
million, or $0.02 per share, compares to a net loss of $0.9 million,
or $0.02 loss per share, for the same period last year.

As of September 30, 2004, the Company had cash and marketable
securities of $124.6 million.

“We see strong momentum in the clinical software market,
especially for e-prescribing and electronic medical record
applications,” commented Glen Tullman, Chief Executive Officer of
Allscripts Healthcare Solutions. “During the third quarter, we
continued to realize the benefits of the improvements in our
implementation process, enabling us to recognize record revenues and
margins.”

Total revenue for the nine months ended September 30, 2004, was
$74.5 million, compared to $62.2 million for the nine months ended
September 30, 2003. Revenue from software and information services for
the nine months ended September 30, 2004, was $39.1 million,
increasing by 40% over the comparable period last year.

Net income for the nine months ended September 30, 2004, of $1.7
million, or $0.04 per share, compares to a net loss of $5.1 million,
or $0.13 loss per share, for the same period last year.

Allscripts Healthcare Solutions will conduct a conference call on
Tuesday, October 26, 2004, 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 November 9, 2004, at www.allscripts.com
or by calling 1-800-642-1687, ID # 1373344.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions (AHS) is the leading provider of
clinical software, connectivity and information solutions that
physicians use to improve healthcare. Our TouchWorks software is a
modular electronic medical record that enhances physician productivity
using Tablet PCs, wireless handheld devices and desktop workstations
to automate the most common physician activities including
prescribing, dictating, capturing charges, ordering labs and viewing
results, providing patient education, and documenting clinical
encounters. AHS also offers electronic document imaging and scanning
solutions through our Advanced Imaging Concepts subsidiary. Our
Physicians Interactive(TM) unit is the leading provider of online
healthcare product education and market research programs for
physicians and our Allscripts Direct(TM) unit offers medication
fulfillment services to a variety of healthcare providers throughout
the United States. Visit AHS on the Web at www.allscripts.com.

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 www.sec.gov.

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

                                                    September December
                                                        30,       31,
Assets                                                 2004      2003
--------                                           --------- ---------

 Current assets:
     Cash and cash equivalents                      $47,328   $13,336
     Marketable securities                           15,225     3,435
     Accounts receivable, net                        20,441    18,219
     Other receivables                                  396       237
     Inventories                                      2,413     3,249
     Prepaid expenses and other current assets        3,215     3,863
                                                   --------- ---------
         Total current assets                        89,018    42,339

 Long-term marketable securities                     62,024    34,538
 Fixed assets, net                                    2,180     2,237
 Intangible assets, net                              24,967    26,359
 Software development costs, net                      6,408     4,040
 Other assets                                         4,714       879
                                                   --------- ---------
         Total assets                              $189,311  $110,392
                                                   ========= =========

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

 Current liabilities:
     Accounts payable and accrued liabilities       $16,742   $13,988
     Deferred revenue                                13,759    10,959
                                                   --------- ---------
         Total current liabilities                   30,501    24,947

 Long-term debt                                      82,500         -
 Other liabilities                                      187     2,055
                                                   --------- ---------
         Total  liabilities                         113,188    27,002

 Stockholders' equity                                76,123    83,390
                                                   --------- ---------

        Total liabilities and stockholders' equity $189,311  $110,392
                                                   ========= =========


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


                                     Three Months    Nine Months Ended
                                         Ended
                                     September 30,     September 30,
                                      2004     2003     2004     2003
                                  --------- -------- -------- --------

Revenue:
      Prepackaged medications      $11,811  $10,990  $35,391  $34,278
      Software and related
       services                     10,986    8,232   29,815   20,048
      Information services           2,897    3,266    9,251    7,862
                                   -------- -------- -------- --------
            Total revenue           25,694   22,488   74,457   62,188

Cost of revenue                     14,617   13,833   44,145   40,828
                                   -------- -------- -------- --------
Gross profit                        11,077    8,655   30,312   21,360

Operating expenses:
      Selling, general and
       administrative expenses       9,453    9,618   27,316   26,974
      Amortization of intangibles      437      295    1,311      563
                                   -------- -------- -------- --------
            Income (loss) from
              operations             1,187   (1,258)   1,685   (6,177)

Interest income and other income,
 net                                   388      340      853    1,082
Interest expense                      (833)       0     (833)       0
                                   -------- -------- -------- --------
Income (loss) before income taxes      742     (918)   1,705   (5,095)

Income taxes                             0        0        0        0
                                   -------- -------- -------- --------
Net income (loss)                     $742    ($918)  $1,705  ($5,095)
                                   ======== ======== ======== ========

Net income (loss) per share -
 basic and diluted                   $0.02   ($0.02)   $0.04   ($0.13)
                                   ======== ======== ======== ========

Weighted average shares of common
 stock outstanding used in computing
 basic net income (loss) per share  38,803   38,628   39,146   38,509
                                   ======== ======== ======== ========

Weighted average shares of common
 stock outstanding used in computing
 diluted net income (loss)
 per share                          41,164   38,628   41,760   38,509
                                   ======== ======== ======== ========

    CONTACT: Allscripts Healthcare Solutions
             Bill Davis, 847-680-3515, Ext. 282
             bill.davis@allscripts.com
             or
             Dan Michelson, 847-680-3515, Ext. 4330
             dan.michelson@allscripts.com

    SOURCE: Allscripts Healthcare Solutions, Inc.
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