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.
   

April 07, 1999

Quality Systems Announces Integration of Subsidiaries; Patrick Cline Named President of Newly Created Combined Division
TUSTIN, Calif. — Wednesday announced the full integration of its two subsidiaries, Clinitec International, Inc. and MicroMed Healthcare Information Systems, Inc.

The two entities will be combined into one operating division under Quality Systems in order to streamline operations and take advantage of synergies between the two entities. At the same time, the company is making additional changes to develop further efficiencies in certain company-wide functions that will be managed from the corporate headquarters in Tustin, California.

The merging of the two operations is effective immediately. Patrick Cline, currently President of Clinitec, an Executive Vice President of Quality Systems, and a member of Quality Systems' Board of Directors, has been appointed President of the new operating division, which will continue to carry the name MicroMed Healthcare Information Systems, Inc. Steve Puckett, currently President of the MicroMed subsidiary and an Executive Vice President of Quality Systems, has been named Senior Vice President andProduct Manager for the division's software development efforts. The new division will continue to develop, implement, and support its Windows(R)-based practice management and NextGen(R) electronic medical records systems.

Patrick Cline commented on the merger, saying, "This culminates our process of developing operational synergies between the two subsidiaries. We have already successfully merged the sales teams, sales management, and marketing departments of Clinitec and MicroMed, a process we completed in January 1999. Consolidating the operational and development aspects of the businesses is the final step, and one that should benefit the company greatly, through additional cost savings; sharing implementation, training and support personnel across various product lines; and, enhancing uniformity within our functional areas."

"We are very pleased to be moving forward with this final stage of the integration of Clinitec and MicroMed," said Sheldon Razin, President and Chairman of the Board of Quality Systems. "Just as the integration of the products led to a whole that was greater than the sum of its parts, so too we expect the consolidation of the two entities to lead to a new division that is stronger and more dynamic than the independent subsidiaries. We are confident that the new division will thrive under Pat Cline's leadership."

Quality Systems, Inc. is one of the leading developers and providers of computer-based practice management and electronic medical records systems for medical and dental group practices with a customer base of approximately 500 clients in 45 states, Canada and Saudi Arabia.

This press release contains forward-looking statements, including those relating to revenue and net income, that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are volume and timing of systems sales and installations, length of sales cycles and installation process, 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 as applied to the company as of the date hereof.