Netsmart Technologies, Inc.
Ticker: NTST 146 Nassau Avenue
Exchange: NASDAQ-Small Cap Market Islip, New York 11751
Industry: High-Tech (516) 968-2000

Type of Shares:Common Shares Filing Date:3/20/96
U.S. Shares:1,125,000 Offer Date:8/13/96
Non-U.S. Shares:0 Filing Price:$4.00
Primary Shares:1,125,000 Offer Price:$4.00
Secondary Shares:0 Gross Spread:$0.40
Offering Amount: $4,500,000 Selling:$0.20
Expenses:$525,000 Reallowance:$0.10
Shares Out After:5,786,253

ManagerTierPhone
Monroe Parker & CompanyLead Manager (914) 696-4200

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$7.38$2.56$1.43Assets:$7.67
Net Income:-$2.85-$0.08-$0.56Liabilities:$7.19
EPS:$0.59$0.02-$0.12Equity:$0.49

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company develops, manufactures, and markets computer software products designed to enable organizations to provide a range of services in a network computing environment. A network computing environ mentis a computer system that provides multiple users with access to a common data base and functions. A network system can be a local system, such as a local area network, known as a LAN, which operates within and office or facility, or a distributed system which provides simultaneous access to a common data base to many users at multiple locations. There are typically three parties in the Company's network systems -- the sponsor, the users and the service providers. The sponsor is the party that maintains the data base. The sponsor may be a managed care organization, a university or a financial institution. The users are the individuals who use the system, and may be the subscribers of a managed care organization, the students at a university or the bank card or credit card holders of a financial network.The service providers are those who provide goods or services to the users.

Use of Proceeds
Proceeds from the proposed offering will be used to pay for outstanding loans, including loans due to related parties and for working capital and other general corporate purposes.

Last updated: 10/28/96

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