Netsmart Technologies Announces Contracts with Four States for Behavioral Healthcare Software and Services

Implementations Range from Financial Systems to Pharmacy Systems

Great River, NY (October 18, 2006) –

Netsmart Technologies, Inc. (NASDAQ SC: NTST), a leading provider of enterprise-wide software for health and human services organizations, today announced that it has been awarded contracts totaling approximately $1.9 million over periods of up to three years for state-level behavioral healthcare software and services implementations in New York, Hawaii, Idaho and Arizona.

As part of a larger multi-year agreement, Netsmart will continue to provide ASP hosting services to the State of New York Office of Alcoholism and Substance Abuse Services (OASAS) in support of the rollout of the Netsmart Avatar software. The three-year agreement for ASP hosting is designed to minimize up-front costs and software hosting and maintenance resource requirements for OASAS. OASAS has implemented Avatar PM (Practice Management) and Avatar CWS (Clinician Workstation) to support their day-to-day registration, billing and clinical documentation needs. In addition to Avatar software, Netsmart will support OASAS’s use of Crystal reports.

Netsmart will provide licensed software, integration tools and implementation services, including HL7 interfaces, for the MediWare WORx(TM) medication management system for the State of Hawaii Department of Health. The MediWare system contract is an amendment that increases the products and services to be provided under an existing three-year agreement for a Netsmart-implemented integrated clinical management system designed to enable the state to effectively serve behavioral healthcare clients statewide.

Netsmart has entered into an agreement with State of Idaho Department of Health and Welfare to upgrade the state’s current behavioral health hospital information system software to Avatar PM and Avatar CWS. The contract includes licensed software, installation, training, customization and professional services, as well as Netsmart’s RADplus customization tools and HL7 interface to the pharmacy management system. The Avatar suite of software is designed to facilitate inpatient operational and clinical processes at two state mental health hospitals in Idaho.

Netsmart has also entered into a one-year multi-faceted agreement with the Arizona Department of Health Services. Avatar CWS will be deployed at the Arizona Community Protection and Treatment Center, joining Avatar PM as a foundation for the center’s operation. The contract also calls for implementation and data conversion services and the use of Avatar Mobile for remote caseworker data access.

“We’re privileged to serve as the technology partner for more than 30 state systems,” said James Gargiulo, Netsmart executive vice president, Clients and Solutions. “This is even more gratifying given the stringent selection processes, unique implementation criteria and specific requirements that vary considerably from state to state.”

For more information about Netsmart Technologies solutions, call 1-800-421-7503 or visit www.ntst.com

About Netsmart Technologies, Inc.

Netsmart Technologies, Inc., based in Great River, N.Y., is an established, leading supplier of enterprise-wide software solutions for health and human services providers, with more than 1,300 clients, including more than 30 systems with state agencies. Netsmart’s clients 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.

WORx is a trademark of MediWare Information Systems, Inc.

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Source: Netsmart