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New InterSystems’ Integration Platform Will Greatly Accelerate Development Time

EXTON, Pa – September 13, 2004 – Daou Systems, Inc. (OTC: DAOU), a provider of IT consulting and management services to healthcare organizations, today announced a new phase of its nearly 20-year relationship with InterSystems Corporation. Daou will be an implementation partner for Ensemble, InterSystems’ new universal integration platform.

“Our long-standing relationship with InterSystems has enabled us to provide the best database technology in the integrated solutions we build for clients,” said John Peterson, vice president and general manager of Daou’s Government and Integration Services practice. Daou’s government practice has partnered with InterSystems in numerous government and commercial engagements that utilize InterSystems’ post-relational CACHÉ database. “Working with the new Ensemble product for rapid integration and development of composite applications, we can greatly accelerate the development phase of our consulting engagements – in some cases by as much as 50-70 percent. Clearly, this is an important addition to our solutions portfolio.”

“We’ve had synergy with Daou for nearly two decades because of the company’s healthcare focus and technology expertise,” said Trevor Matz, managing director, application integration for InterSystems. “Now, with Ensemble, we have a new way to leverage each other’s strengths. We’re very pleased that Ensemble is helping to support the dynamic work Daou is doing to enable healthcare organizations maximize their existing investments.”

According to Peterson, Ensemble’s persistent, high performance, SQL-compliant object database engine means Daou can build integration components that are replicable from one client engagement to another. “The integration platform will be of particular use in Daou’s R.A.P.I.D . toolkit of compact, tightly focused IT consulting services,” Peterson said. “Each of the four R.A.P.I.D. solutions has an integration component. Whether it’s bringing wireless technology into a legacy environment, or deploying web services as a way of enhancing user systems, the new technologies need to be integrated with legacy systems, and Ensemble enables us to accelerate that process.”

About Daou

Daou Systems, Inc. (OTCBB: 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. More information is available at www.daou.com.

About InterSystems

Headquartered in Cambridge, Massachusetts, InterSystems Corporation has served the needs of IT organizations and independent software vendors for more than two decades. InterSystems’ showcase products, the Caché post-relational database and the Ensemble universal integration platform, enable the rapid creation and fast integration of high-performance applications. Over four million people use mission-critical applications based on InterSystems’ software. Twenty regional offices serve application developers and integrators around the world, and 24 x 7 support is provided for all InterSystems products. More information is available at www.intersystems.com. InterSystems is the leading database provider in healthcare, with CACHÉ in use at the majority of major hospitals and labs around the world, including America’s 10 best hospitals as rated by U.S. News and World Report.

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.

Trademark Notes:  Caché is a trademark of InterSystems Corporation.  Other trademarks belong to their respective owners.

Editorial Contacts

Sandra Taylor, Ph.D.
Vice President of Marketing, Daou
610.594.2700
Email

Candace Flynn
Char Baxter Communications
770.934.0563 ext. 263
Email