CHICAGO, Oct. 5 /PRNewswire/ — Allscripts Healthcare Solutions, Inc.
(Nasdaq: MDRX) today reported that, based on preliminary financial
information, it expects third quarter revenues to be in the range of
$16-17 million and cash loss per share to be in the range of $0.30-$0.35,
excluding the effects of restructuring and other special charges. The Company
also stated that previous guidance for 2001 is no longer applicable and that
it will provide revised estimates for the remainder of 2001 on October 25th in
conjunction with the release of its third quarter results.

“The tragic events of September 11th and the subsequent travel disruptions
affected our ability to close key sales that would have contributed to revenue
in the quarter, prevented a number of reference site visits by potential
clients, and postponed our ability to generate revenue from new and ongoing
client implementations,” commented Glen Tullman, Allscripts Chief Executive
Officer. “Despite these setbacks, we remain very encouraged by the response
from academic medical centers, large physician groups and integrated delivery
networks to our TouchWorks(TM) offering. During the third quarter, we signed
the largest TouchWorks contract in our history, to implement over 450
physicians, and, despite the lower than expected revenues, we anticipate an
increase in our backlog.” The Company also noted that more than 10
significant contracts were delayed and remain in its sales pipeline.

In July of 2001, Allscripts announced a restructuring plan that it
indicated would result in a charge of $3-5 million in the third quarter. The
Company did not disclose estimated savings at that time. Based on its current
progress, the Company now believes the restructuring will result in cost
reductions of approximately $15 million on an annual run rate basis,
continuing Allscripts progress toward profitability in 2002. The Company also
noted that the exit from certain unprofitable contracts had a negative impact
on third quarter revenues. In addition, the Company will take a charge
against earnings in the third quarter related to the carrying value of
goodwill and other acquisition-related intangible assets.

“We continue to be excited about both our position and our traction in
this marketplace. Customers are demonstrating real demand for our TouchWorks
suite of products and for our Physicians Interactive physician education
tools. The restructuring of our business and the steps we have taken to
reduce operating expenses will position us well for achieving profitability in
2002,” Tullman commented. “Our shift to sales of enterprise solutions remains
a key component of our strategy as we have quickly transitioned our
organization to focus on more profitable opportunities within healthcare
information technology.”

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 and are accessed using a wireless
handheld 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.
Additionally, Allscripts provides patient compliance and healthcare product
education services for physicians through its Physicians Interactive unit.
Allscripts provides services to over 15,000 physicians at more than
4,000 sites across the U.S.

TouchWorks is a trademark of Allscripts Healthcare Solutions. Visit
Allscripts on the Web at 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 2000 Annual Report on Form 10-K, available through the Web site
maintained by the Securities and Exchange Commission at www.sec.gov .

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SOURCE Allscripts Healthcare Solutions, Inc.

CONTACT: Dan Michelson, Vice President of Marketing of Allscripts
Healthcare Solutions, Inc., +1-800-654-0889, Ext. 4330,
dan.michelson@allscripts.com /