CONTACT:
Netsmart Technologies Contact: Carpe DM, Inc.
Ron Marge Stuart Fine
1-800-421-7503, ext. 2026 908-490-0075
rmarge@csmcorp.com stuart@carpedminc.com
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Netsmart Technologies, Parent Company of Creative Socio-Medics, Acquires
CMHC Systems of Dublin, Ohio
Creative Socio-Medics and CMHC Systems will operate as
Netsmart Technologies, Inc.
GREAT RIVER, N.Y., September 29, 2005 - Netsmart Technologies, Inc. (Great
River, New York), 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. "
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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."
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, now with over 1250 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 or Creative's website do not constitute a part of this release.
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