                                                                    Exhibit 99.1

Computer  Programs and Systems,  Inc.  Announces Third Quarter Results;  Company
Declares Regular Quarterly Dividend of $0.12 Per Share

     MOBILE, Ala.--(BUSINESS WIRE)--Oct. 21, 2004--(NASDAQ/NM:CPSI):

Highlights:

--   Third quarter net income increased 42.8%;
--   Signed 14 new system installation contracts;
--   Recorded positive free cash flow of $2.9 million (excluding dividend); and
--   Declared regular quarterly dividend of $0.12 per share.

     Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading provider of
healthcare information solutions,  today announced results for the third quarter
and nine months ended September 30, 2004.
     The Company  also  announced  that its Board of  Directors  has  declared a
regular  quarterly  cash  dividend of $0.12  (twelve  cents) per share,  payable
November  26,  2004,  to  shareholders  of record as of the close of business on
November 5, 2004.
     David Dye,  chief  executive  officer and president of CPSI,  stated,  "Our
financial  performance  continues to steadily  improve.  In  particular,  we are
pleased  that as a  result  of new  business  office  outsourcing  clients,  our
recurring  revenues  increased  seven  percent  over  the most  recent  quarter.
Additionally,  our free cash flow remains strong,  reaching $2.9 million for the
quarter and $6.9 million for the year."
     Total  revenues for the third quarter ended  September 30, 2004,  increased
7.9% to $21.1  million  compared  with total  revenues of $19.6  million for the
prior  year  period.  Net income  for the  quarter  ended  September  30,  2004,
increased 42.8% to $2.1 million, or $0.20 per diluted share,  compared with $1.5
million,  or $0.14 per diluted share,  for the quarter ended September 30, 2003.
Cash provided from  operations  for the third quarter was $3.3 million  compared
with $3.0 million for the same period last year.
     Total revenues for the nine months ended September 30, 2004, decreased 2.0%
to $58.4  million  compared  with total  revenues of $59.6 million for the prior
year period. Net income for the nine months ended September 30, 2004,  decreased
24.0% to $4.3 million,  or $0.41 per diluted share,  compared with $5.6 million,
or $0.54 per  diluted  share,  for the same  nine  months  period in 2003.  Cash
provided from  operations for the nine months ended September 30, 2004, was $8.0
million compared with $7.2 million for the same period last year.
     For the fourth quarter of 2004, the Company  anticipates  total revenues of
$22.0 to $23.0 million and net income of approximately $2.4 to $2.6 million,  or
$0.23 to $0.25 per diluted share.  CPSI's  12-month  backlog as of September 30,
2004, was $67.1  million,  consisting of $17.4 million in  non-recurring  system
purchases and $49.7 million in recurring payments for support,  outsourcing, ASP
and ISP contracts.
     Mr.  Dye  continued,  "In the  third  quarter,  we  executed  system  sales
contracts with 14 new client  hospitals.  The average contract size was down 22%
over the  previous  quarter;  however,  the 14 contracts  represent  the highest
number of new sales contracts signed in one quarter in over a year."
     In closing,  Mr. Dye added, "As our guidance suggests,  we are anticipating
record  revenues  and  earnings  for the  fourth  quarter.  We  continue  to see
increasing  demand for our  products  and services  among  community  hospitals,
particularly  as  more  facilities  realize  the  benefits  of  providing  their
caregivers  with an  electronic  medical  record as a byproduct of an integrated
information system."
     A listen-only  simulcast and replay of CPSI's third quarter conference call
will be  available  on-line at  www.cpsinet.com  and  www.fulldisclosure.com  on
October 22, 2004, beginning at 9:00 a.m. Eastern Time.

     About Computer Programs and Systems, Inc.

     CPSI  is  a  leading  provider  of  healthcare  information  solutions  for
community  hospitals  with over 500 client  hospitals  in 45 states.  Founded in
1979, the Company is a single-source vendor providing comprehensive software and
hardware products,  complemented by complete installation services and extensive
support.  Its fully integrated,  enterprise-wide  system automates  clinical and
financial data management in each of the primary functional areas of a hospital.
CPSI's  staff  of over  650  technical,  healthcare  and  medical  professionals
provides  system  implementation  and continuing  support  services as part of a
comprehensive  program  designed to respond to clients'  information  needs in a
constantly  changing  healthcare  environment.   For  more  information,   visit
www.cpsinet.com.

     This press release contains  forward-looking  statements within the meaning
of the "safe harbor" provisions of the Private Securities  Litigation Reform Act
of 1995. These forward-looking statements can be identified generally by the use
of  forward-looking  terminology  and words  such as  "expects,"  "anticipates,"
"estimates,"  "believes,"  "predicts,"  "intends," "plans,"  "potential," "may,"
"continue,"  "should," "will" and words of comparable meaning.  Without limiting
the generality of the preceding statement,  all statements in this press release
relating to estimated and projected earnings, margins, costs, expenditures, cash
flows, growth rates and future financial results are forward-looking statements.
We  caution  investors  that  any  such  forward-looking   statements  are  only
predictions  and  are not  guarantees  of  future  performance.  Certain  risks,
uncertainties  and other factors may cause actual  results to differ  materially
from  those  projected  in the  forward-looking  statements.  Such  factors  may
include:  overall  business and economic  conditions  affecting  the  healthcare
industry;  saturation of our target market and hospital consolidations;  changes
in customer purchasing priorities and demand for information technology systems;
competition with companies that have greater financial,  technical and marketing
resources  than we have;  failure to develop  new  technology  and  products  in
response to market demands;  fluctuations in quarterly financial performance due
to,  among  other  factors,  timing of  customer  installations;  failure of our
products to function properly resulting in claims for medical losses; government
regulation  of our products  and  customers;  interruptions  in our power supply
and/or  telecommunications  capabilities  and other risk factors  described from
time to time in our public  releases and reports filed with the  Securities  and
Exchange  Commission,  including,  but not limited to, our Annual Report on Form
10-K. We also caution investors that the forward-looking  information  described
herein  represents  our  outlook  only  as of this  date,  and we  undertake  no
obligation to update or revise any forward-looking  statements to reflect events
or developments after the date of this press release.
<TABLE>
<CAPTION>
                  COMPUTER PROGRAMS AND SYSTEMS, INC.
             Unaudited Condensed Statements of Operations
                 (in thousands, except per share data)

                                  Three Months Ended Nine Months Ended
                                     September 30,    September 30,
                                   ----------------  ----------------
                                    2004     2003      2004     2003
                                   -------  -------  -------  -------
<S>                                    <C>      <C>      <C>      <C>
Sales revenues:
 System sales                       $9,055   $9,082  $23,845  $28,822
 Support and maintenance             9,454    8,718   28,018   25,467
 Outsourcing                         2,623    1,791    6,495    5,285
                                   -------  -------  -------  -------
   Total sales revenues             21,132   19,591   58,358   59,574

Cost of sales:
 System sales                        7,048    7,171   19,627   20,804
 Support and maintenance             4,180    4,010   12,438   11,939
 Outsourcing                         1,482    1,091    3,833    3,155
                                   -------  -------  -------  -------
   Total cost of sales              12,710   12,272   35,898   35,898
                                   -------  -------  -------  -------
   Gross profit                      8,422    7,319   22,460   23,676

Operating expenses:
 Sales and marketing                 1,405    1,480    4,134    4,516
 General and administrative          3,680    3,561   11,497   10,349
                                   -------  -------  -------  -------
   Total operating expenses          5,085    5,041   15,631   14,865
                                   -------  -------  -------  -------

   Operating income                  3,337    2,278    6,829    8,811
Interest income, net                    62       60      181      153
Other                                   50        3      128       60
                                   -------  -------  -------  -------
   Income before taxes               3,449    2,341    7,138    9,024
Provision for income taxes           1,363      880    2,848    3,380
                                   -------  -------  -------  -------
   Net income                       $2,086   $1,461   $4,290   $5,644
                                   =======  =======  =======  =======

Basic earnings per share             $0.20    $0.14    $0.41    $0.54
                                   =======  =======  =======  =======
Diluted earnings per share           $0.20    $0.14    $0.41    $0.54
                                   =======  =======  =======  =======

Weighted average
 shares outstanding:
  Basic                             10,490   10,488   10,490   10,488
  Diluted                           10,533   10,525   10,531   10,546
</TABLE>



<TABLE>
<CAPTION>
                  COMPUTER PROGRAMS AND SYSTEMS, INC.
                  Unaudited Condensed Balance Sheets
                            (in thousands)

                                                    Sept. 30, Dec. 31,
                                                      2004      2003
                                                     -------  -------

                                ASSETS
<S>                                                     <C>      <C>
Current assets:
 Cash and cash equivalents                           $12,618   $9,473
 Accounts receivable, net of
  allowance for doubtful accounts
  of $1,243 and $904 respectively                     11,180   11,917
 Financing receivables,
  current portion                                      1,169    1,113
 Inventory                                             1,365    1,102
 Deferred tax assets                                   1,341    1,039
 Prepaid expenses                                        548      364
 Prepaid income taxes                                   --        120
                                                     -------  -------
   Total current assets                               28,221   25,128

Financing receivables, long-term                         652      794
Property and equipment                                 9,996    9,909
Accumulated depreciation                              (4,764)  (4,561)
                                                     -------  -------

   Total assets                                      $34,105  $31,270
                                                     =======  =======

                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                                       $830   $1,126
 Deferred revenue                                      1,784    1,634
 Accrued vacation                                      1,705    1,562
 Other accrued liabilities                             2,374    1,130
 Income taxes payable                                    616     --
                                                     -------  -------
   Total current liabilities                           7,309    5,452

Deferred tax liabilities                                 490       66

Stockholders' equity:
 Common stock, par value $0.001
  per share, 30,000,000 shares
  authorized, 10,489,849 shares
  issued and outstanding                                  10       10
 Additional paid-in capital                           17,292   17,290
 Deferred compensation                                  (136)    (174)
 Retained earnings                                     9,140    8,626
                                                     -------  -------
   Total stockholders' equity                         26,306   25,752
                                                     -------  -------

   Total liabilities and
    stockholders' equity                             $34,105  $31,270
                                                     =======  =======
</TABLE>



<TABLE>
<CAPTION>
                  COMPUTER PROGRAMS AND SYSTEMS, INC.
                    Other Supplemental Information
                            (In thousands)

The following table summarizes free cash flow for the Company:

                                                     Three     Nine
                                                     Months   Months
                                                     Ended    Ended
                                                   Sept. 30, Sept. 30,
                                                     2004      2004
                                                    -------  -------
<S>                                                     <C>      <C>
Net cash provided by operating activities            $3,337   $7,985
Purchases of property and equipment                    (432) (1,063)
                                                    -------  -------

Free cash flow                                       $2,905   $6,922
                                                    =======  =======
</TABLE>

Free cash flow is a non-GAAP  financial  measure  which CPSI defines as net cash
provided by operating  activities less capital  expenditures.  The most directly
comparable GAAP financial measure is net cash provided by operating  activities.
The Company  believes free cash flow is a useful measure of performance and uses
this measure as an  indication of the strength of the Company and its ability to
generate cash.

    CONTACT: Computer Programs and Systems, Inc., Mobile
             M. Stephen Walker, 251-639-8100
             www.cpsinet.com

