Daou Names Cox, Radin To Board Of Directors; Move To Broaden Base Of Business Expertise On Healthcare IT Consultancy’s Board

EXTON, Pa., June 30 /PRNewswire-FirstCall/ -- Daou Systems, Inc. (BULLETIN BOARD: DAOU) , a provider of IT consulting and management services to healthcare organizations, today announced the appointment of Douglas L. Cox and Robert F. Radin, Ph.D. to the company's Board of Directors. Both appointments were effective this month.

"We are striving to expand the base of business expertise on our board of directors," said Daniel J. Malcolm, Daou's President and Chief Executive Officer. "And we are delighted that we're meeting this objective with two such accomplished individuals as Douglas Cox and Robert Radin. I am looking forward to the positive impact their high level of experience and individual perspectives will have on our company as we pursue new opportunities for evolution and growth."

With the new appointments, Daou accomplishes two purposes: to add independent individuals to the Board and to diversify the knowledge and experience of its Board members.

"We are excited about the appointments to the Daou Board," said Larry Ferguson, Chairman of the Board for Daou. "Doug meets our requirements of having a financial expert on the board and has been nominated to be chair of the Audit Committee; Bob brings a wealth of knowledge on corporate governance which is essential."

Douglas L. Cox is the Executive Vice President and Chief Financial Officer of Opinion Research Corporation, a NASDAQ listed professional services company with revenues of $175 million. He is responsible for the worldwide financial functions of the company and has been with the firm since 1998. From 1988 to 1998 he was the Senior Vice President and Chief Financial Officer of Atofina Chemicals, Inc. Formerly Pennwalt Corporation, a NYSE-listed company, Atofina is a U.S.-based multinational chemical company operating in 14 countries with revenues of $1.8 billion. Cox holds a B.S. and M.B.A. from the Wharton School of Business, University of Pennsylvania.

Dr. Robert F. Radin currently is an Adjunct Professor at Boston College, teaching graduate courses in Corporate Governance, Management and Organizational Behavior. He returned to college as a Doctoral Candidate in Board Governance in 1996 after having served as president of the Investor Services Group (ISG) for First Data Corporation from 1992 to 1995, and president of Shareholder Services for American Express Information Services from 1989 to 1992. Dr. Radin worked at The Boston Company/Shearson Lehman Brothers from 1983 to 1989, first as the Senior Vice President of Operations for the Mutual Fund Division and then as the Executive Vice President of the Transfer Agent Division. He holds a B.S. in Accounting from Northeastern University, an M.B.A. from Babson College and a Ph.D. from Boston College.

About Daou

Daou Systems, Inc. (BULLETIN BOARD: DAOU) provides expert consulting and management services to healthcare organizations in the design, deployment and support of IT infrastructure and application systems. Daou offers a range of comprehensive services, from mobile health and web services strategies to application implementation and support; from government and commercial integration services to best practices in Help Desk, break/fix and desktop support. Daou has provided services to more than 1,600 healthcare organizations, including leading private and public hospitals, managed care organizations on both the payer and provider sides of the market, as well as integrated healthcare delivery networks and some of the nation's largest government healthcare entities. Daou Systems, Inc. is a publicly traded company listed on the OTC Bulletin Board under the stock symbol DAOU.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Daou Systems, Inc. You should not place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Forward-looking statements usually contain the word "estimate," "anticipate," "hope," "believe," "think," "expect," "intend," "plan" or similar expressions, and are subject to numerous known and unknown risks and uncertainties. In evaluating such statements, you should carefully review various risks and uncertainties identified in this report, including the matters set forth under the captions "Risk Factors" and in Daou's other SEC filings, including those more fully set forth in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of Daou's Form 10-K for the year ended December 31, 2003 on file with the SEC. These risks and uncertainties could cause Daou's actual results to differ materially from those indicated in the forward-looking statements. We do not undertake any obligation to update or publicly announce revisions to any forward-looking statements to reflect future events or developments.

Daou Systems, Inc.

CONTACT: Media: Char Baxter of Char Baxter Communications,+1-770-934-0563, ext. 221, cbaxter@charbaxter.com, for Daou, or Sandra Taylor,Ph.D., Vice President of Marketing of Daou, +1-610-594-2700,sandra.taylor@daou.com

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