Insight Venture Partners Leads Netsmart Technologies' Public-to-Private Transaction

Investment Consortium Includes Bessemer Venture Partners, Salmon River Capital and Netsmart Management

MEDIA CONTACT:
Dave Kishler
Netsmart Technologies
614.764.0143, Ext. 7252 dkishler@ntst.com

4/10/2007 - (New York, N.Y. and Larchmont, N.Y.) Insight Venture Partners Leads Netsmart Technologies' Public-to-Private Transaction,Investment Consortium Includes Bessemer Venture Partners, Salmon River Capital and Netsmart Management,New York, N.Y. and Larchmont, N.Y.,Insight Venture Partners, a leading private equity investor in growth-stage and mid-size technology companies, and Bessemer Venture Partners, the oldest venture capital practice in the U.S., today announced the close of the public-to-private transaction of Netsmart Technologies, Inc. following the majority approval of the company’s shareholders. Joining Insight in the transaction are Salmon River Capital and members of Netsmart’s executive management team.

Netsmart Technologies, Inc., [Nasdaq SC:NTST] based in Great River, N.Y., is an established, leading supplier of enterprise-wide software solutions to more than 1,300 customers, including health and human services organizations, public health agencies, mental health and substance abuse clinics, psychiatric hospitals, and managed care organizations. Netsmart’s solutions enable these organizations to enhance clinical care and achieve higher efficiencies in their financial and management back-office processes.

“Netsmart’s technology supports the delivery of quality healthcare and service by their customers to million of Americans,” said Larry Handen, managing director, Insight Venture Partners. “We have been impressed by the quality and dedication of Netsmart’s management team in proactively meeting market’s needs in new areas like electronic health records, consumer-directed healthcare, emergency response and bio-terrorism preparedness. We look forward to supporting organic and acquisition growth in this new phase of the company’s evolution.”

James L. Conway, CEO of Netsmart Technologies stated: “We are very pleased to partner with our new investors to support Netsmart as we scale and work within a changing marketplace. Insight, Bessemer and Salmon River bring years of experience in technology and healthcare, a combination which complements our domain knowledge and capabilities. This partnership will build on our existing strong foundation as we continue to focus on creating long-term value for our customers and all stakeholders.”

“Bessemer believes that the healthcare software market has very attractive growth characteristics, as demonstrated by Netsmart’s performance,” observed Bob Goodman, managing partner, Bessemer Venture Partners. “We look forward to working with the company’s talented management team and with our co-investors to help Netsmart provide the behavioral health, substance abuse and public health markets with the technology they need to provide the highest quality of care.”

Joining Netsmart Technologies’ new board of directors are Larry Handen and Peter Sobiloff, managing directors at Insight Venture Partners; Bob Goodman, managing partner at Bessemer Venture Partners, and S. Joshua Lewis, founder and managing principal of Salmon River Capital. Richard Wells, vice president at Insight, will also sit on the board. James L. Conway, in his position as CEO, will represent the company.

Insight Venture Partners was represented by O’Melveny & Myers LLP. Proskauer Rose LLP advised Bessemer Venture Partners. Salmon River Capital was advised by Fried, Frank, Harris, Shriver and Jacobson LLP. Netsmart Technologies was advised by Farrell Fritz, P.C.
Debt financing was provided by Wells Fargo Foothill.


About Netsmart Technologies, Inc.
Netsmart Technologies, Inc., based in Great River, N.Y., is an established, leading supplier of enterprise-wide software solutions for health and human services providers, with more than 1,300 clients, including more than 30 systems with state agencies. Netsmart's clients include health and human services organizations, public health agencies, mental health and substance abuse clinics, psychiatric hospitals, and managed care organizations. More than 120 public health organizations and 10 state health departments use Netsmart to further their mission of providing citizens with high quality public health care and services. Netsmart’s products are full-featured information systems that operate on a variety of operating systems, hardware platforms, and mobile devices, and offer unlimited scalability.

About Insight Venture Partners
Insight Venture Partners has raised over $2 billion in capital to invest in leading software, technology and Internet services companies. From our New York headquarters, Insight takes a global approach to investing, providing hands-on execution and strategic advice to ensure our portfolio companies benefit from Insight’s cumulative operational and financial experience. Insight, founded in 1995, invests in, and partners with, expansion stage and mid-market transactions to create long-term value for all stakeholders. For additional information, visit the Firm's website at www.insightpartners.com

About Bessemer Venture Partners
Bessemer Venture Partners is the oldest venture capital practice in the United States. With offices in Silicon Valley, Boston, New York, Shanghai, Mumbai, and Bangalore, the Bessemer group manages two billion dollars of venture funds, carrying on a tradition of hands-on, active investing that has continued since 1911. Over 100 Bessemer companies have gone public, including American Superconductor, Ciena, Gartner Group, Ingersoll Rand, International Paper, Maxim, Parametric, Perseptive Biosystems, Staples, VeriSign, Veritas, and W.R. Grace. For additional information, visit www.bvp.com.

About Salmon River Capital
Salmon River Capital is a specialized private equity/venture capital firm focused on building exceptional, technology-enabled companies in selected sectors where its principals have significant expertise. The firm leverages a broad set of transactional and operational capabilities and an unusually flexible capital base, enabling it to pursue a wide range of transactions.