(Logo:  http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO )    Q2 Financial Highlights   

Revenue: Total revenue for the second quarter of 2009 was $23.5 million, compared to $13.6 million for the second quarter of 2008. The Company reported non-GAAP revenue of approximately $27.5 million, which included $4.0 million in revenue that was not recognized under GAAP due to purchase accounting treatment related to the Company's acquisition of Emageon Inc.

Operating Income/Loss: Operating loss for the second quarter of 2009 was $6.6 million, compared to an operating loss of $0.6 million for the second quarter of 2008. Non-GAAP operating income for the second quarter of 2009 was $1.3 million.

Adjusted EBITDA: The Company's adjusted EBITDA for the second quarter of 2009 was $3.6 million, compared to an adjusted EBITDA of $0.4 million for the second quarter of 2008.

Net Income/Loss: The Company's net loss for the second quarter of 2009 was $6.6 million, or $(0.19) per share, compared to a net loss of $97,000, or $(0.00) per share, for the second quarter of 2008. The Company's non-GAAP net income for the second quarter of 2009 was $1.4 million, or $0.04 per share.

Cash and Cash Flow: AMICAS ended the second quarter of 2009 with a cash, cash equivalents, and marketable securities balance of $34.6 million and working capital of $21.9 million. AMICAS used $1.2 million of cash from operations in the second quarter of 2009, and generated $0.5 million of cash from operations in the first half 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 did not repurchase any shares during the second quarter of 2009. Under this plan, the Company has repurchased approximately 281,000 shares of our common stock for approximately $426,000.

Business Perspective

"We are very pleased with our performance in the second quarter of 2009. We demonstrated excellent progress on a number of important fronts - including record bookings and revenue, accelerated progress on our business integration, continued focus on customer success, while at the same time pursuing strategic growth opportunities," said Stephen Kahane MD, president, chief executive officer, and chairman of AMICAS. "Our recent acquisition enables AMICAS to scale and to execute both as a top-flight IT solution provider and as a standalone, independent public company. We believe that this combination clearly establishes AMICAS as the number one independent vendor in this space and, according to Millennium Research Group, the number three player overall."

Dr. Kahane also said, "We continue to maintain focus on our core markets - including serving the end-to-end needs of radiology groups and outpatient imaging businesses, addressing departmental workflow needs for image-intensive specialties in hospitals and IDNs, as well as delivering vendor-neutral, large scale imaging infrastructure solutions that support healthcare system EMR installations."

Dr. Kahane went on to say, "In parallel, we are committed to capitalizing on a number of industry sub-segments that we believe provide excellent prospects for growth. We believe that AMICAS' growth will be improved by trends in the market for teleradiology, solutions for image-enabling the EMR, and a growing trend in replacement opportunities where customers value interoperability, modern technology, and opportunities for high returns on investment."

Looking Forward

Second Half of 2009: The Company is establishing guidance for the second half of fiscal year 2009 as follows:

   --  Non-GAAP revenue for the second half of 2009 is expected to be       approximately $56.0 million. For 2009, revenue is expected to be       approximately $94.8 million.     --  Adjusted EBITDA for the second half of 2009 is expected to be       approximately $8.5 million. For 2009, adjusted EBITDA is expected to       be approximately $12.3 million.   

Fiscal Year 2010: In addition to the guidance on the second half of fiscal year 2009, the Company now expects 2010 to come in at the upper-end of the previously provided guidance. That is, the Company is increasing the low-end of previous fiscal 2010 guidance and reaffirming the top-end of the fiscal 2010 guidance.

   --  Fiscal year 2010 revenue (GAAP) is expected to be $115 to $120       million.     --  Fiscal year 2010 adjusted EBITDA is expected to be $17.9 to $20.7       million.   

A reconciliation of the Company's financial results determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP) to certain non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Explanation of Non-GAAP Financial Measures."

Conference Call

AMICAS will host a conference call on Thursday, August 6, at 8:30 a.m. Eastern Time to discuss the Company's 2009 second fiscal quarter results. Investors and other interested parties may dial in to the call using the toll free number 800.895.0198 (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 800.688.7339 or 402.220.1347 until September 6, 2009.

   AMICAS  is a registered trademark and service mark of AMICAS, Inc.    About AMICAS, Inc.   

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 (EMR). 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," "expects," "estimates," "guidance," 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, June 30, 2009, contained in this press release are subject to review by the Company's independent registered public accounting firm.

Explanation of Non-GAAP financial measures

Management believes that in order to properly understand the Company's short-term and long-term financial trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures prepared in accordance with GAAP. These items result from facts and circumstances that vary in frequency and/or impact on continuing operations. In addition, management uses results of operations before such items to evaluate the operational performance of the Company and as a basis for strategic planning and operational management. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition to the description provided below, reconciliations of GAAP to non-GAAP results are provided in the financial statement tables included in this press release.

In this press release, the Company defines "non-GAAP revenue" as total revenue before the purchase accounting impact to revenue, arising as a result of the Company's acquisition of Emageon Inc.

The Company defines "non-GAAP operating income/loss" as net income (loss) before income taxes and interest, restructuring, acquisition-related transition and integration costs, and includes revenue and cost of revenue related to acquisitions that would otherwise be recognized but for the accounting treatment related to the Company's acquisition of Emageon Inc.

The Company defines "non-GAAP net income/loss" as net income (loss) before restructuring, acquisition-related transition and integration costs, and includes revenue and cost of revenue related to acquisitions that would otherwise be recognized but for the accounting treatment related to the Company's acquisition of Emageon Inc.