Quality Systems, Inc. ("QSI") and its wholly-owned subsidiary, MicroMed Healthcare Information Systems, Inc. ("MicroMed"), develop and provide computer-based practice management, medical records, and e-business applications for medical and dental group practices.
   

October 30, 2003

Quality Systems Reports Second Quarter Results

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 30, 2003--Quality Systems, Inc. (Nasdaq:QSII - News) today announced the results of operations for its fiscal 2004 second quarter ended September 30, 2003.

The Company posted net revenues of $17.6 million in the second quarter, an increase of 35% from $13.0 million for the same quarter last year. The Company reported net income of $2,408,000, an increase of 41% over net income of $1,710,000 for the comparable quarter of the prior year. Fully diluted earnings per share totaled $0.37 in the quarter, an increase of 37% over the fully diluted $0.27 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 second quarter were driven by record revenue and profit in the company's NextGen Healthcare Information Systems division, which posted record revenue of $13.5 million, up 57% over the same-quarter prior year, and record operating income of $3.8 million, up 81% over the same-quarter prior year.

Quality Systems, Inc. will hold a conference call to discuss second quarter financial results today, Thursday, October 30, 2003, at 1:00 p.m. EST (10:00 a.m. PST). To participate in the call, please call (877) 586-7724 five to ten minutes prior to the scheduled conference call time. There is no pass code required for this call. If you are unable to participate in the call at this time, a replay will be available on Thursday, October 30, at 1:00 p.m. PST, through Thursday, November 6, at midnight EST. To access the replay, dial (800) 642-1687 and enter the conference ID number 3512337.

A transcript of the conference call will be made available on the QSII Web site (www.qsii.com).

Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, medical records, and connectivity applications for large medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information

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.

Quality Systems, Inc.
                   Consolidated Statements of Income
                              (unaudited)
                          Three Months Ended       Six Months Ended
                            September 30,           September 30,
                          2003        2002        2003        2002
                       ----------- ----------- ----------- -----------
Net Revenues:
 Sales of computer
  systems, upgrades
  and supplies         10,026,000   6,814,000  19,500,000  13,239,000
 Maintenance and other
  services              7,616,000   6,180,000  14,448,000  12,062,000
                       ----------- ----------- ----------- -----------
                       17,642,000  12,994,000  33,948,000  25,301,000
Cost of Products and
 Services               7,492,000   5,660,000  14,102,000  10,580,000
                       ----------- ----------- ----------- -----------
Gross Profit           10,150,000   7,334,000  19,846,000  14,721,000
Selling, General and
 Administrative
 Expenses               4,768,000   3,442,000   9,508,000   7,115,000
Research and
 Development Costs      1,502,000   1,213,000   2,868,000   2,348,000
                       ----------- ----------- ----------- -----------
Income from Operations  3,880,000   2,679,000   7,470,000   5,258,000
Investment Income          89,000     123,000     189,000     227,000
                       ----------- ----------- ----------- -----------
Income before
 Provision for Income
 Taxes                  3,969,000   2,802,000   7,659,000   5,485,000
Provision for Income
 Taxes                  1,561,000   1,092,000   2,974,000   2,148,000
                       ----------- ----------- ----------- -----------
Net Income             $2,408,000  $1,710,000  $4,685,000  $3,337,000
                       =========== =========== =========== ===========
Income  per Share -
 Basic                      $0.39       $0.28       $0.76       $0.55
                       =========== =========== =========== ===========
Income  per Share -
 Diluted                    $0.37       $0.27       $0.72       $0.53
                       =========== =========== =========== ===========
Weighted average
 number of shares
 outstanding - Basic    6,167,000   6,122,000   6,162,000   6,114,000
                       =========== =========== =========== ===========
Weighted average
 number of shares
 outstanding - Diluted  6,491,000   6,351,000   6,479,000   6,347,000
                       =========== =========== =========== ===========
                         Quality Systems, Inc.
                      Consolidated Balance Sheets
                            (in thousands)
                                ASSETS
                                     September 30,        March 31,
                                    2003 (unaudited)        2003
                                    ----------------   ---------------
Current Assets:
 Cash and cash equivalents                  $40,573           $36,443
 Accounts receivable, net                    21,240            17,561
 Inventories                                    984               667
 Deferred tax assets                          2,029             2,029
 Other current assets                         1,867             2,086
                                    ----------------   ---------------
  Total current assets                       66,693            58,786
Equipment and Improvements, net               1,797             1,777
Capitalized Software Costs, net               3,020             2,511
Deferred Tax Asset                            1,819             1,819
Excess of Cost Over Net Assets of
 Acquired Business, net                       1,840             1,840
Other Assets                                    972               869
                                    ----------------   ---------------
  Total assets                              $76,141           $67,602
                                    ================   ===============
                 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
 Accounts payable                            $1,742            $2,477
 Deferred revenue                            15,093            11,699
 Other current liabilities                    6,900             5,893
                                    ----------------   ---------------
  Total liabilities                          23,735            20,069
Commitments and Contingencies
Shareholders' Equity:
 Common stock, $0.01 par value,
  20,000 shares authorized, 6,174
  and 6,152 shares issued and
  outstanding, respectively                      62                62
 Additional paid-in capital                  35,309            35,121
 Retained Earnings                           17,035            12,350
                                    ----------------   ---------------
  Total shareholders' equity                 52,406            47,533
  Total liabilities and
   Shareholders' equity                     $76,141           $67,602
                                    ================   ===============
                          
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.