1. PDMP Technology Acquisition August 2018

2. Cautionary Statement Regarding Forward-Looking Information
Any statements made in this presentation that do not relate to historical or current facts constitute forward-looking statements. These statements include estimates, projections, the expected length of contract terms, statements relating to the Company’s business plans, objectives and expected operating results, statements relating to potential new contracts or renewals, statements relating to the Company’s expected effective tax rate and the potential effect of tax law changes, statements relating to possible future dividends and share repurchases, and other possible future events, including potential acquisitions, and the assumptions upon which those statements are based. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. These risks include regional or national business, political, economic, competitive, social and market conditions, including various termination rights of the Company and its partners, the ability of the Company to renew existing contracts –in whole or in part, and to sign contracts with new federal, state, and local government agencies, the Company’s ability to identify and acquire suitable acquisition candidates and to successfully integrate any acquired businesses, risks related to the outcome of the Texas procurement process, as well as possible data security incidents. Any statements regarding our expected effective tax rate for 2018 reflect provisional amounts subject to adjustment during the one-year measurement period permitted under applicable law. You should not rely on any forward-looking statement as a prediction or guarantee about the future. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the sections titled “Risk Factors” and “Cautions About Forward-Looking Statements” of the Company’s most recent Forms 10-K and 10-Q filed with the SEC. These filings are available at the SEC's web site at Any forward-looking statements included in this release speak only as of the date of this presentation. Except as may be required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

3. 46 people die every day from a prescription opioid overdose
OPIOID EPIDEMIC
46 people die every day from a prescription opioid overdose
Prescription Drug Monitoring Programs (PDMP) help prevent multiple opioid prescriptions to the same individual (doctor shopping), as well as the over-prescribing of opioids by healthcare providers

4. NIC acquired a suite of PDMP software assets
Developed by Leap Orbit, a privately held, Maryland-based company
Extensive healthcare IT expertise
Enhances NIC’s existing PDMP platform

5. VISION
Strengthens NIC’s PDMP product offering and healthcare vertical focus
Will leverage best practices from NIC PDMP solutions, including the flagship Wisconsin ePDMP, to offer a completely re-imagined, best-in-class solution –
RxGov

6. CURRENT PDMP MARKETPLACE
49 states, D.C., and Guam: currently have laws requiring PDMP system 40 states: mandatory query laws requiring medical providers to access state PDMP systems

7. RxGOV PLATFORM
RxGov addresses common frustrations with legacy systems and gives states a choice
COMMON FRUSTRATIONS:
“black box of data”
Expensive to make changes
Does not integrate easily with Electronic Health Record (EHR) systems
Few alternatives
Unique patient-matching algorithm, using machine learning
Data and alerts embedded into a hospital EHR or pharmacy point-of-sale
Platform as a service for quick, repeatable implementations, yet configurable
Completely cloud-based in the trusted Microsoft Azure cloud platform

8. ADDRESSABLE MARKET OPPORTUNITY
Two Target Markets:
State Agencies States in search of enhancements to or replacement of existing system 12 NIC partner states with PDMP contracts up for rebid in next three years Additional near-term state opportunities Hospitals & Healthcare Providers 4,000 non-federal, acute care hospitals in U.S. Approximately 700,000 staffed beds

9. 90/10 Federal Matching Funds
MAJOR INFLECTION POINT
90/10 Federal Matching Funds
Centers for Medicare and Medicaid Services recently issued 90/10 funding match
develop
enhance
replace PDMP systems

10. $3.5M $3.5M $1.0M Up-front payment
ASSET ACQUISITION
$3.5M
Up-front payment
$3.5M
To be paid in two equal installments if certain milestones are met
$1.0M
2018 incremental operating expense
Purchased intangible assets to be amortized over three-year period.
Company’s 2018 annual EPS guidance remains unchanged.

11. EGOV.COM | EGOV