IRVINE, Calif. - August 25, 2008 - Quality Systems, Inc. (Nasdaq: QSII) announced today that Glass Lewis, a leading proxy advisory service, has recommended that shareholders vote for all of the company's Board of Directors nominees at Quality Systems' annual meeting of shareholders on September 4, 2008. Glass Lewis also advised shareholders to vote against a proposal offered by dissident shareholder Ahmed Hussein, which would require the company to amend the definition of "independent director" in its corporate bylaws.
In recommending that shareholders vote with management for the director nominees George Bristol, Patrick Cline, Philip N. Kaplan, Vincent J. Love, Russell Pflueger, Steven T. Plochocki, Sheldon Razin and Robert L. Smith, the report cited the company's positive, long-term financial performance accomplished primarily under the leadership of the company's Board nominees and current management team. The report also cited Mr. Hussein's lack of a strategic plan and decision not to attend certain committee meetings during his tenure as a Board member as a reasons not to support his director nominee slate. Glass Lewis also dismissed Mr. Hussein's criticism of the company's compensation practices by awarding Quality Systems an "A" grade for its "excellent pay-for-performance practices."
In its analysis, Glass Lewis noted: "…considering the recent transition of leadership at the Company, as well as the absence of an alternative operating plan from the Dissident, shareholders should allow the executive team the opportunity to create positive change."
The Glass Lewis report also analyzed the proposal offered by Mr. Hussein relating to the company's definition of "independent director." The report stated: "Prohibiting any director who previously served as CEO of the Company may prevent the Company from benefiting from the knowledge and expertise of a director with substantial knowledge of the Company" and advised shareholders to vote against this proposal.
Steven Plochocki, Chief Executive Officer of Quality Systems, said, "We are pleased that a well-respected, independent third party such as Glass Lewis has carefully reviewed the voting alternatives and recommends that shareholders vote for the company's director nominees and against the dissident's proposed bylaw change. Glass Lewis' support for our Board nominees is a strong endorsement of the company's financial and operational performance and the pro-shareholder policies that have guided our efforts. We believe this is the right Board to partner with management to continue to build value for our shareholders."
The Company urges all shareholders to vote the WHITE proxy card today. For more information and voting instructions, Quality Systems shareholders should visit: www.qsi2008proxy.com/
About Quality Systems, Inc.
Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, patient records, and connectivity and other applications and services for medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information.
Quality Systems, Inc.
Paul Holt, CFO
CCG Investor Relations
Sean Collins, Senior Partner
The Abernathy MacGregor Group
Tom Johnson/Winnie Lerner