We do technology' So you can do healthcare'

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We do technology. So you can do healthcare.
Lawrence P. English, CEO

• UBS Warburg 2003 Healthcare Conference
  February 3, 2003

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Safe Harbor Statement
Cautionary Statement on Risks Associated With
Forward-Looking Statements This press release
contains forward-looking statements within the
meaning of the Private Securities Litigation
Reform Act of 1995 that are subject to risks and
uncertainties. The words "believe," "expect,"
"anticipate," "intend," "plan," "estimate,"
"may," "should," "could," and similar expressions
are intended to identify such statements.
Forward-looking statements are not guarantees of
future performance and are to be interpreted only
as of the date on which they are made. QuadraMed
undertakes no obligation to update or revise any
forward-looking statement. As previously
announced, QuadraMed is in the process of
restating its historical financial statements and
filing its current financial reports. Important
factors that could cause QuadraMeds actual
results to differ materially from these
forward-looking statements include, but are not
limited to, the following (i) QuadraMeds
ability to remain listed on the Nasdaq National
Market, (ii) QuadraMeds historical operating
results will change as a result of the
restatement of its historical financial
statements, (iii) whether the Companys Chief
Executive Officer and Chief Accounting Officer
will be able to make the necessary certifications
under the Sarbanes-Oxley Act (iv) QuadraMeds
stock price may be volatile, (v) quarterly
operating results may vary, (vi) QuadraMeds
investments are subject to market risk, (vii)
QuadraMed faces product development risks from
rapid technological changes, (viii) QuadraMeds
products may be subject to bugs and other errors,
(ix) QuadraMeds intellectual property and
technology may be subject to infringement claims
or be infringed upon, (x) QuadraMeds products
and services, particularly those sold to
government entities and those sold to customers
receiving government reimbursement, are subject
to scrutiny, regulation, and possible future
regulation by state and federal governments (xi)
increased competition for QuadraMeds products
and services, and (xii) QuadraMed may need to use
its cash balances to repurchase or redeem its
subordinated convertible debentures, and such
cash balances may not be sufficient. This list
of important factors is not intended to be
exhaustive and QuadraMed advises investors that
it discusses other risks and uncertainties that
could cause QuadraMeds actual results to differ
from these forward-looking statements in its
periodic reports filed with the Securities and
Exchange Commission ("SEC"). These SEC filings
can be accessed through the Investor Relations
section of our website, www.quadramed.com, or
through the SECs EDGAR Database at www.sec.gov
(QuadraMed has EDGAR CIK No. 0001018833). Note
to Editors QuadraMed, Affinity, Quantim, and
Complysource are registered trademarks of
QuadraMed Corporation. Chancellor is a trademark
of QuadraMed Corporation. All other trademarks
and registered trademarks are the properties of
their respective holders.
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Operating Problems

• Expensive Restatement
• Deferred Sales
• Sales Contingencies

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Accounting Problems

• Revenue recognition and other errors
• Restatement of prior periods
• Forensic investigation
• CFO resignation
• Uncertainty as to completion
• Review 28 acquisitions
• Demise of Arthur Andersen

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Health Care Information Technology Company

• Affinity - Enterprise Clinical, Financial and
  Patient Information
• HIM - Medical Records Applications
• Financial Services - Accounts Receivable Services

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History

• Founded 1993
• 28 Acquisitions
• 1999 Decline
• 2000 2001 Turnaround
• 2002 Operational Progress and Accounting problems

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Enterprise Strategy

• Stronger more complete clinical solutions
• CPOE, Pharmacy
• More integrated approach to technology

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Some of Our Customers
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Medical Records Strategy

• Offer integrated Health Information Management
  Solutions
• Coding
• Compliance
• Abstracting
• Medical Record Management
• Build on New Quantim Platform
• Unified the technology and architecture
• Fully integrated web native platform

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HCIT MARKET SIZE
( in billions)
Source Sheldon I. Dorenfest and Associates, May
2000
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QuadraMeds Strengths

• Management Team
• Sales team and process
• Software engineering team
• Large and loyal customer base
• Successful implementation process
• Standalone or bundled applications
• Clear vision of market needs
• Migration/vertical opportunity

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2002 Operating Progress

• Quantim Compliance product March of 2002
• Computerized Physician Order Entry (CPOE)
• October 2002 Beta
• March 2003 release
• Acquisition of PDS Pharmacy
• Cascade Health Information Software
• Divestiture of the HIM Services Division
• Sales Metrics Positive
• 8 New Affinity Contracts

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Summary

• Strong franchise
• Great management team
• Loyal customers
• Attractive market
• Great uncertainty due to accounting issues

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We do technology. So you can do healthcare.

• UBS Warburg 2003 Healthcare Conference
  February 3, 2003