Computer Programs and Systems, Inc. Announces Special Dividend of $1.00 Per Share

  Computer Programs and Systems, Inc. Announces Special Dividend of $1.00 Per
  Share

Business Wire

MOBILE, Ala. -- November 15, 2012

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of
healthcare information solutions, today announced that its Board of Directors
has approved a special cash dividend of $1.00 per share, payable on December
14, 2012, to stockholders of record as of the close of business on November
29, 2012. The special dividend, which will total approximately $11.1 million
based on the number of shares of common stock currently outstanding, is
expected to be funded with available cash on hand. The special dividend is
separate from and in addition to the Company’s quarterly dividend of $0.46 per
share previously announced on October 25, 2012.

Boyd Douglas, president and chief executive officer of CPSI, stated, “In light
of our strong balance sheet and our confidence in future cash flows, and in
anticipation of potentially significant increases in tax rates on dividends
beginning in 2013, we believe it is an opportune time to return value to
shareholders through this one-time special dividend. This decision by our
Board highlights our commitment to providing superior returns to our
shareholders, while retaining the financial capability to reinvest in the
Company’s long-term growth and enhance shareholder value over the long term.”

The special dividend is not expected to have an effect on the Company’s
operations or its plans to continue paying regular quarterly dividends in the
future.

About Computer Programs and Systems, Inc.

CPSI is a leading provider of healthcare information solutions for community
hospitals with over 650 client hospitals in 45 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 1,400
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, forward-looking statements include
all statements other than those made solely with respect to historical fact,
including statements with respect to the approved special dividend and the
payment of quarterly dividends in the future. Numerous risks, uncertainties
and other factors may cause actual results to differ materially from those
expressed in any forward-looking statements. Such factors include: the impact
of the special dividend; overall business and economic conditions affecting
the healthcare industry; the potential effects of the federal healthcare
reform legislation enacted in 2010, and implementing regulations, on the
businesses of our hospital customers; the funding uncertainties associated
with and potential expenditures required by the American Recovery and
Reinvestment Act of 2009 in connection with the adoption of electronic health
records; 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 and
Medicaid reimbursement rates; government regulation of the healthcare and
health insurance industries; changes in accounting principles generally
accepted in the United States; breaches of security and viruses in our systems
resulting in customer claims against us and harm to our reputation; potential
intellectual property claims against us; 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.

Contact:

Computer Programs and Systems, Inc.
Boyd Douglas, President and Chief Executive Officer, 251-639-8100
 
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