Leviticus Partners, 3% Shareholder of Netsmart Technologies, Calls Transaction to Acquire Netsmart at $16.50 Per Share Sweetheart Deal for Management and Its Financiers in Letter to Special Committee of Netsmart

GREAT RIVER, N.Y., Nov. 21 /PRNewswire/ -- The following letter is being issued by Leviticus Partners, L.P. to the Special Committee of Netsmart Technologies: November 21, 2006 Special Committee of the Board of Directors Netsmart Technologies 3500 Sunrise Highway Great River, New York 11739 Dear Gentlemen/Madams, We are dismayed that the Special Committee would endorse a sale of Netsmart Technologies to management and its financiers at a price which we believe to be wholly inadequate. The proposed transaction announced yesterday at $16.50 per share denies the Company's shareholders the opportunity to realize full value for their shares. Netsmart is a rapidly growing company that has remained undiscovered due in part to a lack of investor relations, resulting in an artificially depressed stock price. Netsmart Technologies seems at quite the beginning of its growth. Backlog is nearly $55million vs. $29million last year. Recurring revenues are up dramatically. The contract with the North Carolina Health and Human Services Dept. is a big one and has only just begun to kick in, with even greater potential upon successful implementation. The AVATAR software platform is highly regarded, has numerous applications in Electronic Health Records, and is one of just a handful of platforms to be certified by the CCHIT for ambulatory EHR. An accretive acquisition has just taken place, and the Company remains in a strong financial position. The proposed buyout price represents approximately 1.5x expected 2007 revenues vs. comparable company public valuations of 2.5 to 5x revenues or more in your market space. One example is Per-Se Technology, a company with problems that recently agreed to be purchased by McKesson for 2x revenues (a multiple one-third larger than that for the transaction you have just approved), despite $500million in debt and lower gross margins. We own approximately 3% of the Company and cannot support a transaction that we believe fails to deliver full value for shareholders. Having been at the helm of Leviticus Partners L.P. and generated annualized returns to investors of nearly 30% since 1994, we do understand the big picture. We believe that Netsmart stock is worth considerably more than $16.50 in any private transaction, and, based on its recent successes, appears to be on its way to a mid $20s valuation as an independent publicly traded entity. We are also disappointed that our attempts over the past few months to meet with the Company were rebuffed. While we believe you are continuing to show disdain for your shareholders, we do not have the same antipathy for the Company's management. Management has done an excellent job building this Company and has quietly positioned Netsmart to be a force in the ready to explode arena of E-Health Records, and deserves to be paid well. They do not deserve to be paid well, however, at the expense of shareholders. If you cannot get the right price for the Company now, stay independent. Adam M. Hutt Leviticus Partners, L.P.