Cash provided from operations improved to $10.8 million for the quarter, compared to $8.8 million in third-quarter 2005.  Cash, cash equivalents and marketable securities were $123.2 million as of September 30, 2006. Days sales outstanding (DSOs) were 69 days, a sequential increase of 3 days.  Deferred revenue (including current and long-term) was $113.8 million as of September 30, 2006, compared to $111.6 million as of June 30, 2006.

          “The third quarter was a very positive step in building momentum at Eclipsys,” said Andy Eckert, president and chief executive officer, Eclipsys. “We won several major new clients and generated meaningful business within our growing installed base. Additionally, with more than 20 Eclipsys customers live on Sunrise Clinical Manager 4.5, and Children’s Hospital of Omaha successfully activating Sunrise Pharmacy, our integrated pharmacy information system, we now have the necessary reference sites to continue to attract new Sunrise Clinical Manager customers.”

          Added Eckert, “Sunrise Ambulatory Care, which recently received CCHIT Certification, continues to receive market acceptance and is now being implemented at some of the nation’s largest healthcare organizations. Our success selling Sunrise Ambulatory Care demonstrates our ability to transform our proven solutions for the most complex care areas of the acute care facility to the outpatient environment.”

          Continued Eckert, “Our recent Eclipsys User Network provided a great showcase for our customers who have achieved positive outcomes using Eclipsys solutions. The event was an affirmation that we are cementing our reputation as the healthcare information technology vendor that healthcare organizations turn to when they want to achieve improved outcomes.” 

          Investor Teleconference October 30

          Eclipsys senior executives will discuss the results during an investor community teleconference scheduled for 4:30 p.m. Eastern time on Monday, October 30. Persons interested in participating in the teleconference should call (888) 428-4471 approximately 15 minutes before the conference is slated to begin. For listen-only mode, participants should go to www.eclipsys.com prior to the conference call to register and download the necessary audio software. An audio replay will be available in the investor relations section of www.eclipsys.com for approximately 48 hours beginning at 7:00 p.m. Eastern on October 30. 

          Non-GAAP Measures

          The financial results reported in this press release have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In addition to the GAAP results, the Company has provided net income and earnings per share information on a non-GAAP basis for the three months ended September 30, 2006 to exclude the effect of the implementation of SFAS 123R, and for the nine months ended September 30, 2006 to exclude the effect of implementation of SFAS 123R and the charge incurred in the first and second quarters in connection with the restructuring undertaken to reduce costs and redirect spending into client related functions. These non-GAAP financial measures should not be considered a substitute for, or superior to, any measure derived in accordance with GAAP. These non-GAAP financial measures may also be inconsistent with the manner in which similar measures are derived or used by other companies. The restructuring charge and implementation of FAS 123R make comparison of the Company’s results with prior periods more difficult and investors have indicated that they consider this supplemental non-GAAP information useful in evaluating our results of operations and future prospects. The Company believes that the non-GAAP financial measures provided, when considered in conjunction with comparable GAAP financial measures, facilitate understanding and evaluation of the Company’s operating performance and future prospects, as well as comparisons of our results with our prior period results that did not include these charges and with results of other companies on a more consistent basis. Internally, the Company uses this non- GAAP information for forecasting and to help make management decisions, as an indicator of business performance, and to evaluate management’s effectiveness and help determine bonuses for management and others. The Company has provided reconciling information in the attachment to this release.