Netsmart Technologies Acquires CMHC Systems, Inc. and Private Placement of Securities

Creative Socio-Medics and CMHC Systems will operate as Netsmart Technologies, Inc.

Great River, New York (September 29, 2005) –

Netsmart Technologies, Inc., a leading supplier of enterprise-wide software solutions for health and human services providers through its wholly-owned subsidiary, Creative Socio-Medics Corp., today announced the successful closing of its acquisition of CMHC Systems, Inc., Dublin, Ohio. Founded in 1978, CMHC Systems delivers full suites of behavioral healthcare information management software for mental health, substance abuse, and addiction services agencies, developmental disability centers, and behavioral health-related managed care organizations.

Netsmart Technologies also announced today that CMHC Systems and Creative Socio-Medics will operate as one company under the name Netsmart Technologies, Inc.

James Conway, CEO of Netsmart, said, “The acquisition effectively unites the resources of two of the largest information technology solutions providers in health and human services. The combined operation is expected to have gross revenue in excess of $50 million of which the recurring revenue portion is approximately $28 million. The new entity consists of over 1,000 human services providers serving approximately 40,000 professional users consisting of psychiatrists, clinicians and case managers. Netsmart’s products lead several sectors of the market and our customers include 33 state operated services, 458 county & community agencies and over 400 methadone clinics. This network of human services providers offers an opportunity to create an integrated health care record supporting interoperability of systems between state behavioral health and community based programs.”

“At Netsmart Technologies, we believe that our solutions improve the quality of life for millions of people,” explained Conway. “Approximately one out of four families is affected at some time by mental health issues, such as substance abuse or depression. In short, Netsmart Technologies enriches the communities in which we all live and work, and we’re very proud of that contribution.”

Netsmart intends to leverage the capabilities of CMHC Systems while continuing to provide support for the entire range of CMHC and Creative products. It is anticipated that future product development will be done to integrate the product roadmaps of both companies and will include enhancements to existing products.

Conway emphasized that the acquisition provides customers with a trusted partner now and into the future. “Netsmart Technologies will protect customers’ investments while creating opportunities that were previously unavailable,” he stated. “By combining forces and talent, we expect to have a greater depth of experience and better positioned to offer long-term technology solutions. We are very excited by the possibilities that lie ahead and look forward to serving an expanded community of agencies with proven solutions for all modalities of care.”

Source: Netsmart