Tuesday, May 4, 2004

AMICAS Signs Record Number PACS Contracts

RIDGEFIELD, CT, May 4, 2004 /Market Wire/ - AMICAS, Inc., the Web-based picture archiving and communications systems (PACS) company, a wholly owned subsidiary of VitalWorks Inc. (NASDAQ:VWKS), signed twelve new contracts for implementation of enterprise PACS during the first quarter of 2004. These results represent records in both total value of new contracts and total number of PACS contracts in a single operating quarter for Amicas, Inc.

The twelve contracts include five hospitals and hospital groups, one large multi-specialty physician group, two high-volume radiology groups, and four imaging center groups who have contracted to utilize both AMICAS Vision Series PACS and VitalWorks' RadConnect RIS.

"During the first quarter, with four combined RIS/PACS contracts, we are seeing early results of the natural synergy between the AMICAS Vision Series PACS and VitalWorks' RadConnect RIS, targeted at the outpatient ambulatory imaging market with its unique information and image management requirements," said AMICAS president and CEO Hamid Tabatabaie . "Our business is growing in both the hospital segment of the market and the outpatient side, where we benefit from and enjoy a significant installed base with the VitalWorks products. Consequently, during the first quarter we increased our resources by investing in and growing our sales, engineering, implementation, and support teams.

First quarter contracts include three hospitals that utilize MEDITECH's health care information system (HCIS). These hospitals plan to utilize AMICAS' integration with MEDITECH products to transform their radiology practice from a film-based operation to a digital practice. Furthermore, these hospitals expect to utilize the integration between AMICAS and MEDITECH to deliver and distribute images via their electronic medical record. Similarly, two other hospitals and physician group practices intend to utilize the integration between AMICAS, McKesson, and Epic respectively. These examples of total integration saves physicians large amounts of time that would otherwise be spent tracking down hard-copy film studies. Clinicians at these facilities will soon join other AMICAS customers and be able to access thousands of new and prior diagnostic imaging studies, instantly and easily with a single sign-on, onsite or offsite, 24 hours a day.

During the quarter, AMICAS field-tested the most recent release of its Vision Series Web-based PACS, Vision 4 (V4), that was shipped for general release at the end of April . "We believe that V4 offers the most advanced functionality in PACS and it has already been clinically integrated with VitalWorks RadConnect RIS as well as MEDITECH, IDX, Misys, and McKesson," said Tabatabaie. "We continue to execute our plan to deliver high-value products and innovative technologies that naturally integrate with existing and new information technologies deployed by the healthcare facilities in our target market. As of the end of the first quarter of 2004, AMICAS has contracts with over 130 unique and often multi-facility customers and our products are installed in over 260 healthcare facilities."

About AMICAS, Inc.
Established in 1995, AMICAS provides Web-based, software-only medical and diagnostic image management solutions. AMICAS conceived the software architecture of The Vision Series, combining PACS functionality into a centralized, standards-based and manageable platform. AMICAS continues to craft scalable, feature-rich solutions to meet the workflow, integration and care needs of all institutions, filling the performance and scalability void left by legacy approaches. AMICAS promotes solutions that leverage the cost efficiencies of a technology-forward design that responds to emerging technologies. Purposely selecting a vendor-neutral hardware approach, AMICAS' value proposition affords clients an average two to three year ROI - half that of traditional solutions.

AMICAS' demonstrated leadership is evident in a diverse customer base encompassing more than 260 facilities, processing more than six million exams per year. AMICAS solutions are implemented at renowned institutions, including New York-Presbyterian Healthcare System and Massachusetts General Hospital for enterprise distribution of images, and Rush North Shore Medical Center, the University of Chicago Hospitals, Blanchard Valley Health Association and Nassau University Medical Center for end-to-end PACS. AMICAS is a wholly owned subsidiary of VitalWorks Inc. (NASDAQ: VWKS), a leading provider of information management technology and services targeted to healthcare practices and organizations throughout the United States. Additional information about AMICAS can be found at www.amicas.com. Additional information about VitalWorks can be found at http://www.vitalworks.com.

Safe Harbor Statement
Except for the historical information herein, the matters discussed in this release include forward-looking statements. The forward-looking statements contained in this release include statements about future financial and operating results. When used in this press release, the words: believes, intends, anticipates, expects, 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 from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the risk that VitalWorks and AMICAS' businesses and/or products will not be integrated successfully, the risk that AMICAS' businesses relationship with its customers will not be successful; the failure by the companies to retain key employees; integrity of the intellectual property of AMICAS; continued compliance with all government laws, rules and regulations for all applicable products; the failure by the company to complete and deliver products and services within currently estimated time frames and budgets; the inability to achieve revenues from combined lines of products; competition including product offerings, price and service; economic and political conditions in the United States and abroad and other risks affecting VitalWorks' businesses generally and as set forth in VitalWorks' most recent filings with the Securities and Exchange Commission. All forward-looking statements in this press release are qualified by these cautionary statements and are made only as of the date of this press release. VitalWorks and AMICAS are under no obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements whether as a result of new information, future events or otherwise.