TUSTIN, Calif. — (BUSINESS WIRE) — Aug. 6, 2001 — Quality Systems Inc. (Nasdaq:QSII - news) today announced that the company has adopted the new Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets,'' and is consequently revising its previously announced first-quarter earnings upward to $0.20 per diluted share for the quarter ended June 30, 2001.

As a result of adopting this new standard, the company is reporting net income of $1,258,000 for its fiscal 2002 first quarter, or $0.20 per diluted share, vs. $1,177,000, or $0.19 per diluted share, reported on July 23, 2001. These results compare with a net income of $625,000, or $0.10 per diluted share in the year-ago quarter, and $725,000, or $0.12 per diluted share assuming pro forma application of the new standard in the year-ago quarter.

Quality Systems is a developer and provider of computer-based practice management and electronic medical records systems for medical and dental group practices.

This news release may contain forward-looking statements, including those related to revenue and net income, that involve a number of risks and uncertainties. Among the important factors that could impact actual results are volume and timing of systems sales and installations; length of sales cycles and installation process; the possibility that the products will not achieve market acceptance; seasonal patterns of sales and customer buying behavior; the development by competitors of new or superior technologies; delays in product development; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; competitive pressures; possible regulation of the company's software by the U.S. Food and Drug Administration; general economic conditions; and the risk factors detailed from time to time in Quality Systems' periodic reports and registration statements filed with the Securities and Exchange Commission.