QD Quadramed Corp.

QuadraMed(R) Corporation (Amex:QD) today announced that its Quantim(R) HIM (Health Information Management) sales totaled 27 new contracts for the second quarter ended June 30, 2006. These results continue to build on the company's strong Quantim sales momentum throughout 2005, and almost double the 14 new contracts posted for the first quarter 2006. QuadraMed Quantim is attracting clients that are migrating from the company's nCoder+ product to Quantim Coding and Compliance. As a result, HIM departments are realizing improved coding accuracy and CMI. Quantim Coding uses an advanced "Knowledge-Based" methodology that promotes higher accuracy levels, simplifies training and delivers greater coder satisfaction. Hospitals migrating to Quantim Coding report accuracy rates of up to 98 percent soon after full implementation. QuadraMed Quantim HIM is a total solution supporting the AHIMA (American Health Information Management Association) e-HIM(TM) initiative to accelerate migration from paper-based to electronic health records (EHR) as a means of more effectively organizing, sharing, and analyzing health data. Quantim Coding is used by AHIMA for the organization's Coding Basics program, which enables distance learning for students working toward becoming coders. AHIMA also uses Quantim Coding for its Virtual Lab Project. This program is designed to enable education institutions nationwide to instruct future HIM professionals using the industry's latest technology. The Quantim Web-native platform includes abstracting, coding, compliance, record management and electronic document management (EDM) products. Each is fully scalable, HIPAA compliant, and deploys with a centralized database and well-documented lower cost of ownership. These products are currently installed at more than 600 healthcare client sites. QuadraMed Quantim HIM, integrated with the company's Affinity(R) HIS (Healthcare Information System), forms a foundational component of QuadraMed's Care-Based Revenue Cycle(TM) process strategy. This strategy enables healthcare organizations to achieve improved financial performance by leveraging quality of care, documentation and coding into positive financial outcomes. Further information about AHIMA is at www.ahima.org, and about all QuadraMed products and services by visiting www.quadramed.com or by calling 800-393-0278. About QuadraMed Corporation QuadraMed Corporation advances the success of healthcare organizations through IT solutions that leverage quality care into positive financial outcomes. As evolving reimbursement scenarios challenge healthcare organizations to leverage quality of care into payment, clients committing to QuadraMed's care-based solutions can realize market leading financial performance. Using QuadraMed's end-to-end solutions to optimize the patient experience and leverage quality of care into payment, our clients can receive the proper reimbursement, in the shortest time, at the lowest administrative cost. Behind our products and services is a staff of almost 600 professionals whose experience and dedication to service have earned QuadraMed the trust and loyalty of customers at approximately 2,000 healthcare provider facilities. To find out more about QuadraMed, visit www.quadramed.com. Cautionary Statement on Risks Associated with QuadraMed's Forward-Looking Statements This press release contains forward-looking statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, by QuadraMed 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 except as required by law. QuadraMed advises investors that it discusses risk factors and uncertainties that could cause QuadraMed's actual results to differ from forward-looking statements in its periodic reports filed with the Securities and Exchange Commission ("SEC"). QuadraMed's SEC filings can be accessed through the Investor Relations section of our website, www.quadramed.com, or through the SEC's EDGAR Database at www.sec.gov (QuadraMed has EDGAR CIK No. 0001018833). QuadraMed and Quantim are registered trademarks of QuadraMed Corporation. Care-Based Revenue Cycle is a trademark of QuadraMed Corporation. All other trademarks are the property of their respective holders.