(Logo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO )    Q1 Financial Highlights   

Revenue: Total revenues for the first quarter of 2009 were $11.3 million compared to $12.8 million for the first quarter of 2008.

Operating Income/Loss: Operating loss for the first quarter of 2009 was $1.6 million compared to an operating loss of $1.2 million for the first quarter of 2008. Operating loss for the first quarter of 2009 included $549,000 of expenses related to the acquisition and integration of Emageon Inc.

Adjusted EBITDA: The Company's Adjusted EBITDA, excluding acquisition-related and integration costs for the first quarter of 2009, was $200,000 as compared to an Adjusted EBITDA of $33,000 for the first quarter of 2008.

Net Income/Loss: The Company's net loss for the first quarter of 2009 was $1.2 million, or $(0.03) per share, compared to net loss of $467,000, or $(0.01) per share, for the first quarter of 2008.

Cash and Cash Flow: AMICAS ended the first quarter of 2009 with cash, cash equivalents, and a marketable securities balance of $56.6 million, no long-term debt, and working capital of $47.7 million. AMICAS generated $1.8 million of cash flow from operations in the first quarter of 2009.

Stock Repurchase: In the fourth quarter of 2008, the Board of Directors directed the Company to initiate a $5.0 million stock repurchase plan. The Company repurchased approximately 88,000 shares of its common stock for approximately $141,000 in the first quarter of 2009. Under this plan, we have repurchased approximately 281,000 shares of our common stock for approximately $426,000.

Business Perspective

"The acquisition of Emageon clearly helps AMICAS scale to execute both as a top-flight IT solution provider and as a standalone independent public company. As a result of our combination with Emageon, AMICAS now provides a market leading suite that includes radiology PACS, radiology information systems, cardiology PACS, cardiovascular information systems, referring physician tools, business intelligence tools, enterprise content management tools (serving as both the imaging component of the EMR and as a vendor-neutral archive), and revenue cycle management systems," said Dr. Kahane.

Dr. Kahane also said, "We continue to maintain our focus on serving the end-to-end needs of imaging centers, radiology groups, and sub-specialty groups that are highly dependent on imaging during their delivery of healthcare services. At the same time, we are looking forward to providing the market with an enterprise content management solution that makes images accessible as a component of the electronic medical record."

Dr. Kahane went on to say, "We believe we have built an excellent foundation with many very sophisticated providers of imaging services while developing an excellent product suite over the last two years. We are looking forward to combining this foundation with the customers, solutions, and employees of Emageon to establish AMICAS as the premiere independent provider of image and information management solutions in healthcare."

Business Outlook

AMICAS expects to provide guidance for 2009 upon completion of its purchase accounting related to the Emageon Inc. acquisition, and to provide this guidance at the time that AMICAS releases its results for the second quarter of 2009.

Purchase accounting is expected to have minimal impact on 2010 results and, therefore, AMICAS is providing the following business outlook for fiscal year 2010.

   --  Fiscal year 2010 revenue is expected to be $112 to $120 million    --  Fiscal year 2010 Adjusted EBITDA is expected to be $16.5 to $20.7       million    Conference Call   

AMICAS will host a conference call on Tuesday, May 12, at 8:30 a.m. Eastern Time to discuss the Company's 2009 first fiscal quarter results. Investors and other interested parties may dial in to the call using the toll free number 1.800.862.9098. (Conference ID: 7AMICAS). The conference call will also be available via Webcast at http://www.amicas.com/. Following the conclusion of the call, a replay will be available at 1.800.283.8520 or 402.220.0870 until June 12, 2009.

About AMICAS

AMICAS, Inc. (http://www.amicas.com/) is a leading independent provider of imaging IT solutions. AMICAS offers the industry's most comprehensive suite of image and information management solutions - from radiology PACS to cardiology PACS, from radiology information systems to cardiovascular information systems, from revenue cycle management solutions to enterprise content management tools designed to power the imaging component of the electronic medical record. AMICAS provides a complete, end-to-end solution for radiology practices, imaging centers, and ambulatory care facilities. Hospitals and integrated delivery networks are provided with a comprehensive image management solution for cardiology and radiology that supports EMR strategies to enhance clinical, operational, and administrative functions.

Safe Harbor Statement

Except for the historical information herein, the matters discussed in this release include forward-looking statements. In particular, the forward-looking statements contained in this release include statements about our anticipated financial and operating results for the remainder of fiscal year 2009 and for fiscal year 2010. When used in this press release, the words: believes, intends, plans, anticipates, expects, estimates, and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions, and uncertainties that could cause actual results to differ materially, which include, but are not limited to, the following: a significant portion of the Company's quarterly sales are concluded in the last month of the fiscal quarter; the length of sales and delivery cycles; the deferral and/or realization of deferred software license and system revenues according to contract terms; the timing, cost, and success or failure of current and new product and service introductions and product upgrade releases; potential patent infringement claims against AMICAS and the related defense costs; the ability of AMICAS to comply with all government laws, rules, and regulations; and other risks affecting AMICAS' businesses generally and as set forth in AMICAS' most recent filings with the Securities and Exchange Commission, including the section entitled "Risk Factors" of our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. All forward-looking statements in this release are qualified by these cautionary statements and are made only as of the date of this release. AMICAS is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. The financial statements and information as of, and for the period ended, March 31, 2009, contained in this press release are subject to review by the Company's independent registered public accounting firm.

Adjusted EBITDA Financial Measures

Adjusted EBITDA refers to net income (loss), adjusted for amortization, acquisition-related and integration costs, depreciation, interest, taxes, and stock compensation expense.

Management believes that its Adjusted EBITDA, when viewed in addition to the Company's reported GAAP results, provides an additional meaningful measure of operating performance, enabling investors to more thoroughly evaluate current performance in comparison to past performance. This information will necessarily differ from comparable information that may be provided by other companies and should not be considered in isolation or as an alternative to the Company's operating and other financial information determined under GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is included below.

   CONTACT:   Colleen McCormick, Investor Relations   617.779.7892   cmccormick@amicas.com                       Condensed Consolidated Balance Sheets                               (Unaudited)                     (in thousands, except share data)                                                    March 31,    December 31,                                                     2009           2008   Assets   Current assets:      Cash and cash equivalents                   $44,076         $7,366      Marketable securities                        12,502         47,627      Accounts receivable, net of allowances       of $45 and $158, respectively                9,654         10,224      Prepaid expenses and other current       assets                                       2,671          2,261   Total current assets                            68,903         67,478    Property and equipment, less accumulated    depreciation and amortization of $7,649 and    $7,495, respectively                              863            965   Acquired/developed software, less    accumulated amortization of $10,766 and    $10,195, respectively                           5,233          5,805   Other intangible assets, less accumulated    amortization of $676 and $2,144, respectively   1,224          1,256   Other assets                                     1,747          1,594   Total Assets                                   $77,970        $77,098    Liabilities and stockholders' equity   Current liabilities:      Accounts payable and accrued expenses        $4,375         $4,156      Accrued employee compensation and       benefits                                     1,252          1,611      Deferred revenue                             15,551         14,657   Total current liabilities                       21,178         20,424    Unrecognized tax benefits                        1,406          1,379   Deferred revenue long term portion                 930              -    Commitments and contingencies    Stockholders' equity:      Preferred stock $.001 par value;       2,000,000 shares authorized; none issued         -              -      Common stock $.001 par value, 200,000,000       shares authorized, 51,558,435 and       51,473,965 issued, respectively                 51             51      Additional paid-in capital                  231,477        230,905      Accumulated other comprehensive (loss)       income                                          (2)           100      Accumulated deficit                        (129,717)      (128,549)      Treasury stock, at cost, 16,357,854 and       16,270,088 shares                          (47,353)       (47,212)   Total stockholders' equity                      54,456         55,295   Total Liabilities and Stockholders' Equity     $77,970        $77,098              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                            (Unaudited)         (in thousands, except per share data and footnotes)                                                      Three Months Ended                                                          March 31,                                                       2009        2008   Revenues     Maintenance and services                        $9,962      $9,753     Software licenses and system sales               1,309       3,035   Total revenues                                   $11,271      12,788    Costs and expenses   Cost of revenues:     Maintenance and services (a)                    $4,232       4,269     Software licenses and system sales,      including amortization of software costs      of $571 and $489, respectively                  1,060       2,211   Selling, general and administrative (b)            4,521       5,002   Research and development (c)                       2,286       2,195   Depreciation and amortization                        185         275   Acquisition-related and integration costs            549           -                                                     12,833      13,952   Operating loss                                    (1,562)     (1,164)   Interest income                                      447         789   Loss on sale of investments                            -         (31)   Loss before provision for income taxes            (1,115)       (406)   Provision for income taxes                            53          61   Net loss                                         $(1,168)      $(467)     (Loss) income per share     Basic:                                          $(0.03)     $(0.01)     Diluted:                                        $(0.03)     $(0.01)    Weighted average number of shares outstanding     Basic                                           35,195      43,628     Diluted                                         35,195      43,628     (a) includes $39,000 and $37,000 in stock-based compensation expense       for the three months ended March 31, 2009, and 2008, respectively   (b) includes $314,000 and $284,000 in stock-based compensation expense       for the three months ended March 31, 2009, and 2008, respectively   (c) includes $104,000 and $112,000 in stock-based compensation expense       for the three months ended March 31, 2009, and 2008, respectively                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                               (Unaudited)                              (in thousands)                                                          Three Months Ended                                                              March 31,                                                          2009         2008   Operating activities   Net loss                                             (1,168)       $(467)    Adjustments to reconcile net loss to cash    provided by operating activities:      Depreciation and amortization                        185          275      Provisions for bad debts                             (73)          55      Amortization of software development costs           571          489      Non-cash stock compensation expense                  457          433      Changes in operating assets and liabilities:        Accounts receivable                                642         (489)        Prepaid expenses and other current assets         (561)         532        Accounts payable and accrued expenses             (140)        (306)        Deferred revenue including unearned discount     1,824          454        Unrecognized tax benefits                           27           25          Cash provided by operating activities          1,764        1,001    Investing activities      Purchases of property and equipment                  (51)        (304)      Purchases of held-to-maturity securities          (8,403)    (124,084)      Maturities of held-to-maturity securities         27,595      113,799      Purchases of available-for-sale securities       (20,363)      (1,500)      Sales of available-for-sale securities            36,193       20,031          Cash provided by investing activities         34,971        7,942    Financing activities      Repurchase of  common stock                         (141)      (4,593)      Exercise of stock options                            116          181          Cash used in financing activities                (25)      (4,412)    Increase in cash and cash equivalents                36,710        4,531   Cash and cash equivalents at beginning of period      7,366        8,536   Cash and cash equivalents at end of period          $44,076      $13,067    Supplemental disclosure of cash paid during the    period for:      Income taxes, net of refunds                          $-         $115   Non-cash investing activity:      Unrealized gain (loss) on available-for-sale       securities                                        $(102)        $120                       RECONCILIATION NET LOSS TO ADJUSTED EBITDA                                  (Unaudited)                                (in thousands)                                                    Three Months Ended                                                       March 31,                                                    2009       2008      Net loss                                    $(1,168)     $(467)     Provision for income taxes                       53         61     Interest income                                 447        789     Loss on sale of investments                       0        (31)   Operating loss                                 (1,562)    (1,164)     Non-cash stock compensation expense             457        433     Acquisition-related and integration costs       549          -     Depreciation and amortization                   185        275     Amortization of software development costs      571        489   Adjusted EBITDA                                  $200        $33                           FISCAL YEAR 2010 BUSINESS OUTLOOK                                 (in thousands)                                                        FY 2010                                                     Low       High   Revenue                                      $112,000   $120,000   Adjusted EBITDA                               $16,500    $20,700                           FISCAL YEAR 2010 BUSINESS OUTLOOK                 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA                                (in thousands)                                                         FY 2010                                                     Low       High   Net income                                     $7,000    $11,000     Provision for income taxes                      300        500     Interest income                                 700        700   Operating income                                6,600     10,800     Non-cash stock compensation expense           2,500      2,500     Depreciation and amortization                 7,400      7,400   Adjusted EBITDA                               $16,500    $20,700  

Photo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk photodesk@prnewswire.com

AMICAS, Inc.

CONTACT: Colleen McCormick, Investor Relations, +1-617-779-7892,cmccormick@amicas.com

Web Site: http://www.amicas.com/

A service of YellowBrix, Inc.