Netsmart and AMS combination anticipated to be beneficial to customers and to marketplace

Netsmart Technologies, Inc. (Nasdaq: NTST – News), a leading supplier of enterprise-wide software for health and human services providers through its wholly owned subsidiary, Creative Socio-Medics Corp. (Creative), today announced that it has acquired the assets of Addiction Management Systems, Inc.

Great River, New York (June 20, 2005) –

Netsmart Technologies, Inc. (Nasdaq: NTST – News), a leading supplier of enterprise-wide software for health and human services providers through its wholly owned subsidiary, Creative Socio-Medics Corp. (Creative), today announced that it has acquired the assets of Addiction Management Systems, Inc. (AMS) of Long Island City, NY for an undisclosed amount that included cash and the assumptions of certain contract liabilities. Creative and AMS are leaders nationally in the development and implementation of automated dispensing systems for methadone clinic management programs, with each company having more than 150 clients. There are 1,100 methadone clinics in the United States.

James Conway, CEO of Netsmart said, “We are excited about the acquisition and the combination of the Creative and AMS client bases.” Mr. Conway went on to say, “I believe that our customers will benefit from this acquisition by having expanded investment in R&D, support and product enhancements for both user communities. We will have a dynamic offering to the marketplace in terms of state-of-the-art products. This combination positions our Company as the largest supplier of automated computerized methadone dispensing systems in the United States”.

AMS president, Dr. Ronald Brady MD, originated the process of automated computerized Methadone dispensing. As the Director of Medicine, Research and Resident Training at the Bridge Plaza Treatment and Rehabilitation Clinic in New York City and an Associate Professor of Psychiatry at Columbia University, Dr. Brady is intimately familiar with the requirements and challenges faced by clinic personnel involved in the treatment of substance abuse at all levels, and he is constantly working to improve the efficiency and accountability of systems and personnel within substance abuse. Integrated Total Solutions, Inc., a Miami-based investment advisory firm, represented AMS in this transaction.

Commenting on the sale, Dr. Brady noted that “AMS had reached the point in its 20 year evolution where continued growth and new product development called for the capital and resources of a larger organization. Creative has the experience and resources to take AMS to the next level in terms of new technologies, while continuing to provide clients with affordable and reliable solutions for managing their clinics. This acquisition will benefit our respective clients by adding greater support depth and improving product lines, including automated medication dispensing, patient record keeping, and real-time billing.”

About Netsmart Technologies, Inc.

Netsmart Technologies, Inc. of Great River, NY, through Creative Socio-Medics, is an established, leading supplier of enterprise-wide software solutions for health and human services providers with over 600 clients, including 26 systems with state agencies. Creative’s clients include health and human services organizations: public health agencies, mental health and substance abuse clinics, psychiatric hospitals, and managed care organizations. Avatar Practice Management and the Avatar Clinician Work Station, Creative’s core 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 or Creative’s website do not constitute a part of this release.

Source: Netsmart