Netsmart Technologies Signs Multi-Year Agreement to Provide Software and Services to Kalamazoo Community Mental Health and Substance Abuse Services

Multi-Faceted Provider Cites Comprehensive Range of Capabilities as Key Factor in Selection

Great River, New York (June 07, 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 a contract totaling more than $2 million by Kalamazoo (Mich.) Community Mental Health and Substance Abuse Services (KCMHSAS).

The five-year agreement includes licensed software, professional services, application service provider (ASP) services and software maintenance.

The agency will use Netsmart’s Avatar software suite as its enterprise solution to facilitate key processes, including client scheduling and tracking, clinical assessment, treatment planning and claims authorizations. Avatar modules to be used by KCMHSAS include Avatar Practice Management, Avatar Clinical Workstation and Avatar Managed Services Organization (MSO).

KCMHSAS will also utilize CareLink, Netsmart’s ASP-based provider portal for authorizations, claims and state reporting data. In addition, Netsmart will provide KCMHSAS with a full range of project management, support and training services.

“We were looking for a software provider that could address a wide range of needs and grow with us into the future. In addition to the basic Avatar functionality, we also hope to leverage Avatar Mobile for clinicians in the field and InfoScriber for e-prescription capabilities,” said Jeff Patton, executive director of Kalamazoo Community Mental Health and Substance Abuse Services. “Netsmart has the breadth of capabilities, the industry expertise and the financial stability to make them ideal partner.”

KCMHSAS serves more than 7,000 consumers in a four-county area of Western Michigan with mental health and developmental disabilities, children with serious emotional disorders and their families, and individuals with severe substance use disorders.

“Kalamazoo has laid the foundation for an infrastructure designed to result in improved service delivery to their clients and enhanced communication and integration with other key stakeholders,” said James Gargiulo, Netsmart executive vice president, Clients and Solutions. “We’re pleased to be the partner of choice for KCMHSAS and many other Michigan behavioral and public health organizations as they chart the path to quality care and operational efficiency.”

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 1,250 clients, including 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 website does not constitute a part of this release.

###

Source: Netsmart