QD Quadramed Corp.

QuadraMed� Corporation (Amex: QD) today announced that the company sold 29 new Quantim� HIM (Health Information Management) contracts for the third quarter ended September 30, 2006. This is an increase of more than one-third when compared to the 21 new contracts reported for the third quarter 2005. Sales for same-site multiple product licenses remained strong, particularly for QuadraMed Coding and Compliance applications. Quantim Coding uses a �Knowledge-Based� methodology that promotes high coder accuracy, with clients achieving accuracy rates as high as 98 percent shortly after full implementation. QuadraMed Quantim HIM supports the AHIMA (American Health Information Management Association) e-HIM� initiative to accelerate migration from a paper-based environment to the Electronic Health Record (EHR). AHIMA uses Quantim Coding, Compliance and Abstracting products for the organization�s e-HIM Virtual Laboratory Project. This program is designed to enable educational institutions nationwide to instruct future HIM professionals using the industry�s latest technology. Quantim Coding is also used for AHIMA�s Coding Basics distance learning program. The Quantim HIM product suite is a fully integrated Web-native platform that includes abstracting, coding, compliance, record management and electronic document management (EDM) products. These products are currently installed at more than 600 healthcare client sites. QuadraMed HIM products are foundational components of QuadraMed�s Care-Based Revenue Cycle� process. This strategic process enables healthcare organizations to achieve improved financial performance by leveraging quality of care into positive financial outcomes. Further information about AHIMA is at www.ahima.org, and for all QuadraMed products and services at 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.