Saber and Netsmart Technologies Team to Develop Enterprise Health Information System for State of North Carolina

Comprehensive initiative would create nationâ??s first statewide IT solution integrating public, mental, and rural health

Portland, Oregon) (June 24, 2006) –

Saber Corporation announced today it has entered into an agreement to deliver an enterprise health system for the State of North Carolina Department of Health and Human Services (DHHS). Saber is teamed with Netsmart Technologies, Inc. (NASDAQ SC: NTST)

The initial phase of the contract with North Carolina DHHS will replace several of the state’s aging public health information systems with a statewide solution serving all public health entities. It is valued in the amount of approximately $19.8 million over a 19-month period, and will be followed by 42 months of maintenance and support valued at approximately $4.7 million. Pursuant to the agreement between Netsmart and Saber, Netsmart will receive an estimated $10.5 million over the contract period for products and services provided by Netsmart. The state also may exercise an option for two additional years of maintenance and operations support valued at $2.7million.

North Carolina DHHS has two subsequent options, which would authorize the Saber/Netsmart team to extend the system’s coverage to North Carolina’s mental and rural health communities. The cumulative effort would create an enterprise statewide health information system, the first of its kind in the U.S. to integrate public, mental and rural health.

The North Carolina DHHS Selection Committee’s report justifying the project award stated that the Saber/Netsmart solution “most closely complied with the requirements stated in the RFP,” and that it is “the only true web-based solution proposed.” The committee concluded that the Saber/Netsmart team’s proposal “offers the overall best value to the State.”

Currently, many of the state’s public health departments maintain independent clinical and practice management systems, while others rely on a state-developed mainframe system with dated technology and significant functional limitations. The new Saber/Netsmart solution is expected to standardize and unify all health department clinical and financial transactions by providing an enterprise database and advanced data management and reporting capabilities. When fully implemented, the system is expected to improve the quality of care for the state’s citizens and save the state time and money in managing its delivery and tracking of healthcare services.

At the core of the Saber team’s secure Web-based solution is Netsmart’s Avatar software, a full-function, off-the-shelf software package designed to automate clinical, financial and management functions for community mental health, public health, and substance abuse providers and payers. Saber’s role will be to manage all aspects of this large-scale project and to integrate the customized Netsmart system among the state’s public health departments.

“Saber is all about delivering technology that helps governmental agencies better serve citizens,” said Nitin Khanna, Saber CEO. “We do this by implementing leading commercial off-the-shelf software technologies like Netsmart’s Avatar system in a manner that uniquely serves customer needs, providing an economical, low-risk alternative to custom software developments.”
“This comprehensive initiative is designed to replace an array of information silos with an integrated system that will benefit not only the agencies involved, but those they serve,” said James L. Conway, chairman and CEO, Netsmart Technologies. “We’re excited to work with North Carolina on this ground breaking initiative and to be a partner with Saber, with their proven record of helping states increase efficiency and reduce costs through implementation of solid enterprise information technology.”

About Saber
Saber, founded in 1997, is headquartered in Portland, OR. The privately held company has deep customer relationships with state and local government entities across the country, providing software and services that underpin essential functions such as voter registration, election management, public retirement programs, human services, public health services, motor vehicles, unemployment insurance, and forms and document processing. For more Saber information, please visit www.sabercorp.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 34systems 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. For more Netsmart information, please visit www.ntst.com.

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 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.

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For Saber Corp. Bob Patterson MKTX, Inc. 503.646.6589 bobp@mktx.com For Netsmart Technologies Dave Kishler 614-932-6723 dkishler@ntst.com

Source: Netsmart