Integral Systems Lowers Financial Guidance

PRESS RELEASE

Integral Systems, Inc. (Nasdaq: ISYS) (“Company”) today revised its previous financial guidance for its fiscal year ending September 30, 2009.

Due to recent schedule delays on several large government contracts, the loss or cancellation of three government programs within the past two weeks, and continued weakness in the aerospace market, the Company is now projecting full-year revenue of approximately $170 million and net earnings of approximately $0.45 per share.

Previous guidance called for revenue of approximately $176 million and net earnings of approximately $1.01 per share. The Company expects gross margin to decline compared to fiscal 2008 due to projected changes in the mix of lower margin services revenue versus higher margin product sales.

“Similar to others in our industry, including our customers, we are affected by the current recession. As a result, we are experiencing longer marketing and sales cycles and delays in government and commercial procurements,” said John Higginbotham, Chief Executive Officer of Integral Systems.

“Given the unpredictable current economic environment, we are carefully controlling our discretionary spending while continuing to invest in business development and compliance infrastructure to create future growth opportunities for the Company. Despite these challenges, Integral Systems is well positioned for growth and we expect to maintain overall profitability and cash positive operating results supported by a healthy balance sheet.”