Computer Programs and Systems, Inc. (NASDAQ: CPSI):

Second Quarter Highlights:

• Revenues of $37.7 million;
• 12-month backlog of $120.4 million;
• Earnings per diluted share of $0.39;
• Cash provided by operations of $2.8 million; and
• Quarterly dividend of $0.36 per share.

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of healthcare information solutions, today announced results for the second quarter and six months ended June 30, 2010.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.36 (thirty-six cents) per share, payable on August 27, 2010, to stockholders of record as of the close of business on August 12, 2010.

Total revenues for the second quarter ended June 30, 2010, increased 22.3% to $37.7 million, compared with total revenues of $30.8 million for the prior-year period. Net income for the quarter ended June 30, 2010, increased 20.4% to $4.3 million, or $0.39 per diluted share, compared with $3.5 million, or $0.32 per diluted share, for the quarter ended June 30, 2009. Cash provided by operations for the second quarter of 2010 was $2.8 million, compared with $3.7 million of cash provided by operations for the prior-year period.

Total revenues for the six months ended June 30, 2010, increased 13.6% to $69.3 million, compared with total revenues of $61.0 million for the prior-year period. Net income for the six months ended June 30, 2010, decreased slightly to $7.2 million, or $0.66 per diluted share, compared with $7.6 million, or $0.69 per diluted share, for the six months ended June 30, 2009. Cash provided by operations for the first half of 2010 was $8.6 million, compared with $7.4 million for the prior-year period.

For the third quarter of 2010, the Company anticipates total revenues of $36 million to $39 million and net income of approximately $4.3 million to $4.7 million, or $0.39 to $0.43 per diluted share. CPSI’s 12-month backlog as of June 30, 2010, was $120.4 million, consisting of $31.4 million in non-recurring system purchases and $89 million in recurring payments for support, Business Management Services, ASP and ISP contracts.

A listen-only simulcast and replay of CPSI’s second quarter 2010 conference call will be available on-line at www.cpsinet.com and www.earnings.com on July 30, 2010, beginning at 9:00 a.m. Eastern Time.

About Computer Programs and Systems, Inc.

CPSI is a leading provider of healthcare information solutions for community hospitals with over 650 client hospitals in 47 states and the District of Columbia. Founded in 1979, the Company is a single-source vendor providing comprehensive software and hardware products, complemented by complete installation services and extensive support. Its fully integrated, enterprise-wide system automates clinical and financial data management in each of the primary functional areas of a hospital. CPSI’s staff of over 1,000 technical, healthcare, medical and business professionals provides system implementation and continuing support services as part of a comprehensive program designed to respond to clients’ information needs in a constantly changing healthcare environment. For more information, visit www.cpsinet.com.

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potential,” “may,” “continue,” “should,” “will” and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and future financial results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: overall business and economic conditions affecting the healthcare industry; saturation of our target market and hospital consolidations; changes in customer purchasing priorities, capital expenditures and demand for information technology systems; competition with companies that have greater financial, technical and marketing resources than we have; failure to develop new technology and products in response to market demands; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; failure of our products to function properly resulting in claims for medical losses; government regulation of our products and customers, including changes in healthcare policy affecting Medicare reimbursement rates; changes in accounting principles generally accepted in the United States; general economic conditions, including changes in the financial markets that may affect the availability and cost of credit to us or our customers; interruptions in our power supply and/or telecommunications capabilities and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.