Hennepin County, Minn. Signs $4.8 Million Agreement with Netsmart Technologies for Behavioral Healthcare Software and Services

Web Services and Mobile Case Management Capabilities Included in Multi-Faceted Program for Progressive County Health and Human Services Organization

Great River, New York (November 18, 2005) –

Netsmart Technologies, Inc. (NASDAQ: NTST), a leading provider of enterprise-wide software for health and human services organizations, today announced that it has been awarded a three-year $4,847,250 software and services contract by the Hennepin County, Minn. Human Services and Public Health Department.

Software revenue, which includes license, labor and maintenance revenue, is expected to be $2.5 million in the first year of the contract. Recurring revenue from maintenance, interface support and upgrades is expected to total $2.3 million for the second and third years.

“Hennepin County has been recognized nationally as a leader in using information strategy to provide better and more efficient services to its residents,” said James Conway, chief executive officer, Netsmart Technologies, Inc. “We’ve been a strategic partner to Hennepin County for three years, and we look forward to continuing to play a key role in their information management and technology initiatives over the next three years. Their ongoing focus on innovation and enhancement of information technology fits well with our mission of helping our clients deliver increasingly effective care at increasingly higher levels of business efficiency.”

The agreement expands upon Netsmart’s existing relationship with Hennepin County, and includes licensed software, on-site product support, project management resources, and development of interfaces to support new initiatives developed by Hennepin to help its more than 1,700 clinical and administrative staff provide mental and public health services to more than 74,000 clients.

“Netsmart has a strong track record of providing us with quality software, domain knowledge and project management expertise to help us better serve our consumers,” said Don Holmberg, area manager, technology/records management, for the Hennepin County Human Services and Public Health Dept. “This new contract will help take us to the next level over the next three years, with deployment of Web services, remote case management and other key initiatives.”

In addition to enhancements to current software, Netsmart will provide:

Web services, enabling Hennepin staff to easily import data into any of the options within Hennepin County’s Human Services Information System (HSIS), and import data directly into service authorizations. Web service functionality is also designed to enable Hennepin County to streamline existing applications, including Bus Card management.
Mobile computing capabilities, which are designed to let Hennepin County Human Services and Public Health case workers use notebook or tablet computers to download consumer information and enter data while on field visits. All data on the devices is encrypted, and will automatically synchronize when transmitted from the remote device to a Hennepin County host computer
Netsmart’s CareNet, a HIPAA-compliant Web-based service that is designed to furnish secure access to demographic, authorization and adjudication information to authorized Hennepin County staff
Disaster recovery, quality assurance and upgrade maintenance services
A module designed to manage the clinical, administrative, financial needs of Hennepin’s public health programs.

Source: Netsmart