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CHICAGO–(BUSINESS WIRE)–July 26, 2005–Allscripts Healthcare
Solutions (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 six months ended
June 30, 2005.

Total revenue for the three months ended June 30, 2005, was $29.5
million, compared to $25.6 million for the same period last year.
Revenue from software and related services for the three months ended
June 30, 2005, was $16.1 million, compared to $9.9 million for the
same period last year, increasing by approximately 62.5%.

Gross margin percentage was approximately 47.0% for the second
quarter of 2005, compared to 39.4% during the second quarter of 2004.

Net income for the three months ended June 30, 2005, was $2.0
million, or $0.05 per diluted share, compared to net income of $0.7
million, or $0.02 per diluted share, for the same period last year.

As of June 30, 2005, the Company had cash and marketable
securities of $134.9 million.

“Our growing sales and bottom line are a result of continued
execution on our business model across our electronic health record,
physician education and medication services offerings,” commented Glen
Tullman, Chief Executive Officer of Allscripts. “Working closely with
our clients, we are leading the market in informing and connecting
physicians and patients to other healthcare stakeholders, which is the
key to transforming healthcare. And, the value of each of our clients,
as reference sites and prospects for innovative new products, such as
TouchWorks iHealth, continues to grow. Every day we are making
progress toward our vision of becoming an indispensable part of the
way physicians practice medicine.”

Total revenue for the six months ended June 30, 2005, was $55.7
million, compared to $48.8 million for the six months ended June 30,
2004. Revenue from software and related services for the six months
ended June 30, 2005, was $30.5 million, compared to $18.8 million for
the same period last year, increasing by approximately 61.7%.

Gross margin percentage was approximately 46.7% for the six months
ended June 30, 2005, compared to 39.4% for the six months ended June
30, 2004.

Net income for the six months ended June 30, 2005, was $3.4
million, or $0.08 per diluted share, compared to net income of $1.0
million, or $0.02 per diluted share, for the same period last year.

Allscripts will conduct a conference call on Tuesday, July 26,
2005, 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
August 9, 2005, at www.allscripts.com or by calling 1-800-642-1687, ID
# 7815470.

About Allscripts

Allscripts Healthcare Solutions is the leading provider of
clinical software, connectivity and information solutions that
physicians use to improve healthcare. The Company provides 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. Allscripts’ Physicians Interactive Group provides clinical
product education and connectivity solutions for physicians and
patients. The Company’s Medication Services Group provides medication
fulfillment services. To learn more, visit Allscripts on the Web 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 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)

                                           June 30,       December 31,
Assets                                       2005             2004
------                                  -------------     ------------
                                         (Unaudited)
Current assets
 Cash and cash equivalents                   $36,779          $16,972
 Marketable securities                        44,814           22,796
 Accounts receivable, net                     23,323           21,382
 Other receivables                               671              627
 Inventories                                   1,929            2,372
 Prepaid expenses and other current assets     3,733            3,571
                                        -------------     ------------
      Total current assets                   111,249           67,720

Long-term marketable securities               53,286           88,471
Software development costs, net                6,181            6,270
Fixed assets, net                              2,482            2,366
Intangible assets, net                        23,753           24,546
Other assets                                   5,349            4,804
                                        -------------     ------------
      Total assets                          $202,300         $194,177
                                        =============     ============

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

Current liabilities
 Accounts payable                             $4,693           $5,981
 Accrued expenses                             12,788           12,218
 Deferred revenue                             14,444           14,607
                                        -------------     ------------
      Total current liabilities               31,925           32,806

Other liabilities                                348              178
Long-term debt                                82,500           82,500
                                        -------------     ------------
      Total  liabilities                     114,773          115,484


Stockholders' equity                          87,527           78,693
                                        -------------     ------------

      Total liabilities and stockholders'
       equity                               $202,300         $194,177
                                        =============     ============



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

                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                                 2005      2004      2005      2004
                              --------- --------- ---------- ---------
Revenue:
  Prepackaged medications       $11,489   $12,396   $21,324   $23,580
  Software and related
   services                      16,145     9,934    30,455    18,829
  Information services            1,900     3,278     3,950     6,354
                              --------- --------- ---------- ---------
       Total revenue             29,534    25,608    55,729    48,763

Cost of revenue:
  Prepackaged medications         9,697    10,054    17,420    18,807
  Software and related
   services                       5,231     3,611    10,485     7,123
  Information services              725     1,854     1,776     3,598
                              --------- --------- ---------- ---------
       Total cost of revenue     15,653    15,519    29,681    29,528
                              --------- --------- ---------- ---------

Gross profit                     13,881    10,089    26,048    19,235

Operating expenses:
  Selling, general and
   administrative expenses       11,458     9,103    21,815    17,863
  Amortization of
   intangibles                      436       445       872       874
                              --------- --------- ---------- ---------
       Income from operations     1,987       541     3,361       498


Interest expense                   (898)        -    (1,805)        -
Interest income                     957       220     1,834       437
Other income (expense), net         (13)      (65)      (23)       28
                               -------- --------- ---------  ---------
Income before income taxes        2,033       696     3,367       963

Income taxes                          -         -         -         -
                              --------- --------- ---------  ---------
Net income                       $2,033      $696    $3,367      $963
                              ========= ========= =========  =========

Net income per share - basic      $0.05     $0.02     $0.09     $0.02
                              ========= ========= =========  =========

Net income per share - diluted    $0.05     $0.02     $0.08     $0.02
                              ========= ========= =========  =========

Weighted average shares of
 common stock outstanding
 used in computing basic net
 income per share                39,824    39,469    39,451    39,319
                              ========= ========= =========  =========

Weighted average shares of
 common stock outstanding
 used in computing diluted
 net income per share           43,144    42,431     42,585    42,113
                              ========= ========= =========  =========

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

    SOURCE: Allscripts Healthcare Solutions
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