California Regional Mental Health System Coalition Selects Netsmart Technologies for $1.9 Million, Nine County Management Information System

Multi-County System to Utilize Comprehensive Clinical and Practice Management Software

Great River, NY (August 16, 2006) –

Netsmart Technologies, Inc. (NASDAQ SC: NTST), a leading provider of enterprise-wide software for health and human services organizations, announced today that it has been awarded a contract totaling nearly $1.9 million by the California Regional Mental Health System Coalition Joint Powers Authority (JPA).

The five-year agreement calls for the use of Netsmart’s Avatar Practice Management and Clinician Workstation software by nine county mental health organizations in the JPA. Counties that will utilize Netsmart software and related services include Amador, Calaveras, Colusa, El Dorado, Glenn, Inyo, Modoc, Mono and Shasta. These counties will use Avatar to facilitate key processes, including client scheduling and tracking, clinical assessment, treatment planning and claims authorizations.

“The selection of Netsmart is the result of an extensive three-year evaluation of a number of software providers based on a wide variety of criteria,” said Dale Jarvis, managing consultant of MCPP Healthcare Consulting, Inc., which oversaw the project. “The end-result of this project will be to help county mental health agencies provide even more timely, high-quality care to those seeking mental health services and enhance the efficiency of the entire process, from scheduling to treatment to billing.”

The Avatar software will be provided in an application service provider (ASP) environment, eliminating the need for the counties to maintain hardware and information technology infrastructure related to the Netsmart software. In addition, under its ASP+ program Netsmart will offer additional data center services for managing state reporting and billing compliance activities, utilizing its Service Bureau in Great River, New York.

“We’re pleased to be selected by the JPA to provide the software and services designed to support mental health and substance abuse treatment services in this time of increasing demands for accountability and interoperability,” said James Gargiulo, Netsmart executive vice president, Clients and Solutions. “This agreement expands our presence in California as a trusted partner to behavioral and public health organizations throughout the state for more than 20 years.”

For more information about Netsmart Technologies solutions, call 800-421-7503 or visit www.ntst.com

About Netsmart Technologies, Inc.
Netsmart Technologies, Inc., based in Great River, New York, is an established, leading supplier of enterprise-wide software solutions for health and human services providers, with more than 1,300 customers, including more than 30 systems with state agencies. Netsmart’s customers include health and human services organizations, public health agencies, mental health and substance abuse clinics, psychiatric hospitals, and managed care organizations. Netsmart’s products are full-featured information systems that operate on a variety of operating systems, hardware platforms, and mobile devices, and offer unlimited scalability.

Statement on Behalf of Netsmart Technologies, Inc.
Statements in this press release may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Netsmart’s filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates, and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on Netsmart’s Web site does not constitute a part of this release.

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Source: Netsmart