Company Declares Regular Quarterly Dividend of $0.36 Per Share

MOBILE, Ala.–(EMWNews)–Computer Programs and Systems, Inc. (NASDAQ: CPSI):

Highlights:

• Revenues of $27.8 million for the second quarter;

• Earnings per diluted share of $0.28;

• Cash flow from operations of $5.2 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, 2008.

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 22, 2008, to stockholders of record as of the close of

business on August 7, 2008.

Total revenues for the second quarter ended June 30, 2008, decreased

0.8% to $27.8 million, compared with total revenues of $28.0 million for

the prior-year period. Net income for the quarter ended June 30, 2008,

decreased 9.4% to $3.0 million, or $0.28 per diluted share, compared

with $3.3 million, or $0.31 per diluted share, for the quarter ended

June 30, 2007. Cash flow from operations for the second quarter of 2008

was $5.2 million, compared with $5.2 million for the prior-year period.

Commenting on the results, Boyd Douglas, chief executive officer and

president of CPSI, stated, “We are pleased

with our strong performance this quarter, which we view as confirmation

of our optimistic outlook and expectations for a solid second half of

the year. During the second quarter, overall demand for our products and

services increased significantly. We are confident this momentum in our

marketplace will continue during the third quarter, and we are well

positioned to capitalize on this opportunity. Also, I am pleased to

report that second quarter cash collections were at a record level. We

are excited about these results and are grateful to our many customers

for their business and continued belief in our company.”

Total revenues for the six months ended June 30, 2008, increased 6.2% to

$57.3 million, compared with total revenues of $53.9 million for the

prior-year period. Net income for the six months ended June 30, 2008,

increased 10.8% to $6.5 million, or $0.60 per diluted share, compared

with $5.9 million, or $0.55 per diluted share, for the six months ended

June 30, 2007. Cash provided from operations for the first half of 2008

was $9.5 million, compared with $8.6 million for the same period last

year.

For the third quarter of 2008, the Company anticipates total revenues of

$30.0 million to $31.5 million and net income of approximately $3.9

million to $4.1 million, or $0.37 to $0.39 per diluted share. CPSI’s

12-month backlog as of June 30, 2008, was $94.3 million, consisting of

$20.2 million in non-recurring system purchases and $74.1 million in

recurring payments for support, outsourcing, ASP and ISP contracts.

A listen-only simulcast and replay of CPSI’s

second quarter 2008 conference call will be available on-line at www.cpsinet.com

and www.earnings.com on July 25,

2008, 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 600 client hospitals in 46 states. 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 700 technical, healthcare and medical 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 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; 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.

COMPUTER PROGRAMS AND SYSTEMS, INC. Unaudited Condensed Statements of Operations (in thousands, except per share data)
		Three Months Ended June 30,						Six Months Ended June 30,
		2008			2007			2008			2007
Sales revenues:
System sales		$	8,458		$	10,266		$	19,114		$	18,582
Support and maintenance			13,133			12,368			26,219			24,908
Business management services			6,161			5,329			11,936			10,419
Total sales revenues			27,752			27,963			57,269			53,909
Cost of sales:
System sales			7,215			7,766			15,117			14,945
Support and maintenance			4,772			5,006			9,570			10,063
Business management services			3,640			3,295			7,225			6,353
Total cost of sales			15,627			16,067			31,912			31,361
Gross profit			12,125			11,896			25,357			22,548
Operating expenses:
Sales and marketing			2,129			2,306			4,389			4,382
General and administrative			5,287			4,765			10,761			9,657
Total operating expenses			7,416			7,071			15,150			14,039
Operating income			4,709			4,825			10,207			8,509
Interest income, net			230			272			495			549
Income before taxes			4,939			5,097			10,702			9,058
Provision for income taxes			1,948			1,795			4,205			3,197
Net income		$	2,991		$	3,302		$	6,497		$	5,861
Basic earnings per share		$	0.28		$	0.31		$	0.60		$	0.55
Diluted earnings per share		$	0.28		$	0.31		$	0.60		$	0.55
Weighted average shares outstanding:
Basic			10,753			10,683			10,749			10,673
Diluted			10,767			10,732			10,767			10,725

COMPUTER PROGRAMS AND SYSTEMS, INC. Condensed Balance Sheets (in thousands)
		June 30, 2008				Dec. 31, 2007
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	12,851			$	11,806
Investments			11,595				11,352
Accounts receivable, net of allowance for doubtful accounts of $797 and $949, respectively			13,179				14,334
Financing receivables, current portion			1,879				1,735
Inventory			1,624				1,450
Deferred tax assets			1,429				1,394
Prepaid expenses			419				506
Total current assets			42,976				42,577
Financing receivables, long-term			1,280				2,322
Property and equipment			12,708				12,130
Accumulated depreciation			(7,586	)			(6,621	)
Total assets		$	49,378			$	50,408
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,625			$	1,717
Deferred revenue			3,971				3,581
Accrued vacation			2,264				2,112
Income taxes payable			76				542
Other accrued liabilities			3,363				3,507
Total current liabilities			11,299				11,459
Deferred tax liabilities			367				571
Stockholders’ equity:
Common stock, par value $0.001 per share, 30,000 shares authorized, 10,833 and 10,807 shares issued and outstanding			11				11
Additional paid-in capital			25,298				24,658
Accumulated other comprehensive income			37				45
Retained earnings			12,366

Computer Programs and Systems, Inc. Darrell G. West, 251-639-8100 Vice President-Finance and Chief Financial Officer