1124804--3/15/2006--ALLSCRIPTS_HEALTHCARE_SOLUTIONS

related topics

{regulation, government, change}

{acquisition, growth, future}

{system, service, information}

{product, market, service}

{stock, price, share}

{personnel, key, retain}

{customer, product, revenue}

{provision, law, control}

{control, financial, internal}

{property, intellectual, protect}

{stock, price, operating}

{cost, operation, labor}

{regulation, change, law}

{financial, litigation, operation}

{loss, insurance, financial}

{competitive, industry, competition}

Risks Related to Our Business If physicians and hospitals do not accept our products and services, or delay in deciding whether to purchase our products and services, our business, financial condition and results of operations will be adversely affected. If we are unable to successfully integrate businesses we acquire, our ability to expand our product and service offerings and our customer base may be limited. Our business will be harmed if we cannot maintain our strategic alliance agreement and the cross license agreement with IDX or if we are unable to enter into and maintain relationships with IDX customers. It is difficult to predict the sales cycle for our healthcare software solutions and physician education services. Competition for our employees is intense, and we may not be able to attract and retain the highly skilled employees we need to support our business. If we lose the services of our key personnel, we may be unable to replace them, and our business, financial condition and results of operations could be adversely affected. If we are unable to successfully introduce new products or services or fail to keep pace with advances in technology, our business, financial condition and results of operations will be adversely affected. Because our business model has changed in recent years, our operating history is not indicative of our future performance, and our business is difficult to evaluate. Our business depends in part on and will continue to depend in part on our ability to establish and maintain additional strategic relationships. Future acquisitions may result in potentially dilutive issuances of equity securities, the incurrence of indebtedness and increased amortization expense. If our products fail to perform properly due to undetected errors or similar problems, our business could suffer. Our future success depends upon our ability to grow, and if we are unable to manage our growth effectively, we may incur unexpected expenses and be unable to meet our customers requirements. We have experienced losses in the past and we may not remain profitable in the future. Our failure to compete successfully could cause our revenue or market share to decline. Our business depends on our intellectual property rights, and if we are unable to protect them, our competitive position may suffer. If we are deemed to infringe on the proprietary rights of third parties, we could incur unanticipated expense and be prevented from providing our products and services. Factors beyond our control could cause interruptions in our operations, which would adversely affect our reputation in the marketplace and our business, financial condition and results of operations. We may be liable for use of data we provide. If our security is breached, we could be subject to liability, and customers could be deterred from using our services. If we are unable to obtain additional financing for our future needs, our ability to respond to competitive pressures may be impaired and our business, financial condition and results of operations could be adversely affected. If our content and service providers fail to perform adequately, our reputation in the marketplace and our business, financial condition and results of operations could be adversely affected. If we are forced to reduce our prices for prepackaged medications, our business, financial condition and results of operations could suffer. If we are unable to maintain existing relationships and create new relationships with managed care payers, our business, financial condition and results of operations will be adversely affected. If we incur costs exceeding our insurance coverage in lawsuits pending against us or that are brought against us in the future, it could adversely affect our business, financial condition and results of operations. If our principal supplier fails or is unable to perform its contract with us, we may be unable to meet our commitments to our customers. Our failure to license and integrate third-party technologies could harm our business. If we do not maintain and expand our business with our existing customers, our business, financial condition and results of operations could be adversely affected. Risks Related to Our Industry We are subject to a number of existing laws, regulations and industry initiatives, non-compliance with certain of which could shut down our operations or otherwise adversely affect our business, financial condition and results of operations, and we are susceptible to a changing regulatory environment. Increased government involvement in healthcare could adversely affect our business. If the electronic healthcare information market fails to develop as quickly as expected, our business, financial condition and results of operations will be adversely affected. Consolidation in the healthcare industry could adversely affect our business, financial condition and results of operations. Risks Related to the A4 Acquisition The A4 acquisition is one of the largest acquisitions we have achieved to date. We will face challenges integrating A4 s operations and technology and may not realize anticipated benefits. We have assumed all of A4 s liabilities, including contingent liabilities. If these liabilities are greater than expected, or if there are unknown A4 obligations, our business, financial condition and results of operations could be adversely affected. If we experience a higher than normal turnover rate for A4 employees, we may not be able to effectively integrate their operations and technology. We may fail to attract new customers or lose current customers as a result of the A4 acquisition. If A4 has failed or fails to comply with existing laws, government regulations and industry initiatives applicable to its operations, we could be harmed. Risks Related to Our Common Stock Because of certain features of our outstanding 3.50% convertible senior debentures and anti-takeover provisions under Delaware law and in our organizational documents, a takeover of us may be difficult, and you may be prevented from obtaining an optimal price for our shares of common stock in the event of a takeover of us. Future sales of our common stock in the public market could adversely affect the trading price of our common stock that we may issue and our ability to raise funds in new securities offerings. Our issuance of preferred stock could adversely affect holders of our common stock and discourage a takeover. Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have an adverse effect on our business and the trading price of our common stock. The market price of our common stock has been and may continue to be volatile. Our quarterly operating results may vary. Conversion of the 3.50% convertible senior debentures will dilute the ownership interest of our stockholders, including holders who had previously converted their debentures.

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1124804--3/15/2006--ALLSCRIPTS_HEALTHCARE_SOLUTIONS_INC