IRVINE, Calif. — (BUSINESS WIRE) — July 25, 2002 — Quality Systems, Inc. (Nasdaq: QSII - News) today announced the results of operations for its fiscal 2003 first quarter ended June 30, 2002.

The Company posted net revenues of $12.3 million in the first quarter, an increase of 13% from $10.9 million for the same quarter last year. The Company reported net quarterly income of $1,626,000, an increase of 29% over net income of $1,258,000 for the comparable quarter of the prior year. Fully diluted earnings per share totaled $0.26 in the quarter, an increase of 30% over the fully diluted $0.20 per share earnings recorded in the same quarter of last year.

The revenue and net income results achieved in the quarter were records for the company. Results in the first quarter were driven by record revenue and profit in the company's NextGen Healthcare Information Systems division.

For the quarter, the Company's NextGen division posted record revenue of $8.1 million, up 23% over the same quarter of the prior year and record operating income of $2.1 million, up 97% over the prior-year quarter.

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 on the healthcare 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

[financial highlights follow]

                         Quality Systems, Inc.
    Consolidated Statements of Operations and Comprehensive Income
                             (Unaudited)
                                      Three Months Ended
                                          June 30,
                                     2002            2001
Net Revenues:
  Sales of computer systems,
    Upgrades and supplies             6,425,000        5,594,000
  Maintenance and other services      5,882,000        5,315,000
                                     12,307,000       10,909,000
Cost of Products and Services         4,920,000        4,734,000
Gross Profit                          7,387,000        6,175,000
Selling, General and
  Administrative Expenses             3,673,000        3,245,000
Research and Development Costs        1,135,000        1,107,000
Income from Operations                2,579,000        1,823,000
Investment Income, net                  104,000          206,000
Income before Provision for
  Income Taxes                        2,683,000        2,029,000
Provision for Income Taxes            1,057,000          771,000
Net Income                          $ 1,626,000     $  1,258,000
Income per Share -- Basic                $ 0.27           $ 0.21
Income per Share -- Diluted              $ 0.26           $ 0.20
Weighted average number of
  shares outstanding -- Basic         6,106,000        5,989,000
Weighted average number of
  shares outstanding -- Diluted       6,332,000        6,173,000
                        Quality Systems, Inc.
                     Consolidated Balance Sheets
                            (in thousands)
                                ASSETS
                                   June 30,         March 31,
                               2002 (unaudited)  2002 (audited)
Current Assets:
  Cash and cash equivalents             $28,862          $25,443
  Short-term investments                     --              255
  Accounts receivable, net               13,245           13,695
  Inventories                             1,019            1,118
  Deferred tax assets                     1,368            1,368
  Other current assets                      955            1,013
    Total current assets                 45,449           42,892
Equipment and Improvements, net           1,582            1,578
Capitalized Software Costs, net           2,125            2,103
Deferred Tax Asset                        2,778            2,778
Excess of Cost Over Net Assets
  of Acquired Business, net               1,840            1,840
Other Assets                              1,022              952
    Total assets                        $54,796          $52,143
                 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                         $863           $2,657
  Deferred service revenue                7,882            6,155
  Other current liabilities               4,338            3,281
    Total liabilities                    13,083           12,093
Commitment and Contingencies
Shareholders' Equity:
  Common stock, $0.01 par value
    20,000 shares authorized,
    6,111 and 6,105 shares
    issued and outstanding,
    respectively                             61               61
  Additional paid-in capital             34,711           34,674
  Retained Earnings                       6,941            5,315
    Total shareholders' equity           41,713           40,050
    Total liabilities and
      Shareholders' equity              $54,796          $52,143
                             	================     =================

Contact:
Quality Systems Inc., Irvine
Lou Silverman, 949/255-2600
www.qsii.com
or
Coffin Communications Group, Sherman Oaks, Calif.
William F. Coffin/Sean Collins, 818/789-0100
www.coffincg.com.