Netsmart Technologies Signs Five Contracts With Combined Value of $1.1 Million With North Carolina Payors and Providers

Netsmart continues to execute its plan to implement its Integrated Solutions for North Carolina Managed Care Requirements

Great River, New York (January 05, 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 Creative has been awarded five contracts with a total value of $1.1 million for Local Management Entities (LME’s) for mental health services in North Carolina. These contracts are with Guilford Mental Health, Wilson-Greene and Roanoke-Chowan Mental Health, Southeastern Regional Mental Health, Port Human Services Methadone Treatment and Life Incorporated and are to be performed over a 1-year period. The contracts cover the license, service and maintenance of Creative’s Avatar ensemble of products and value-added web-based ASP products in a multi-tiered delivery environment.

Netsmart management reports, “The CareLink product, is an integral component of the North Carolina system solution and has been adapted to meet the dynamic compliance requirements of the North Carolina market. We believe that our state-specific product the web-based CareLink platform and ASP deployment model have brought us to this point in North Carolina.”

Creative now has 10 LME’s under contract representing more than 30 percent of the counties in North Carolina. Each LME is responsible for authorizing treatment, monitoring outcomes, and billing state governed funds, including Medicaid, through an Integrated Payment and Reporting System. Creative’s HIPAA compliant integrated Avatar MSO and CareLink solution, is designed to enable the LME to seamlessly communicate with its contract provider network, manage enrollments, authorizations and complete the claims process.

Source: Netsmart