Conmed Healthcare Management (CONM) Signs $16 Million Multi-year Agreement

HANOVER, Md.–(BUSINESS WIRE)–Conmed Healthcare Management, Inc. (NYSE Amex: CONM), a leading full service provider of correctional facility healthcare services to county detention centers, today announced that it has signed an agreement with Clark County, Washington, a new customer, to provide medical services for individuals detained at three county facilities. The contract is for an initial two-year term and Clark County has the option to exercise four one-year extensions. The initial annual revenue of the contract is approximately $2.5 million and with anticipated price increases the contract is projected to generate approximately $16.0 million throughout the full six-year term. Services include staffing, pharmacy services, laboratory services, mental health services, and emergency room services.

“We are excited about the opportunity to serve Clark County as we continue to expand our footprint in the Pacific Northwest,” stated Richard Turner, Chairman and Chief Executive Officer of Conmed Healthcare Management. “Clark County represents a significant expansion for us within this region. Our reputation for quality, value, and reliability of services that we deliver to customers remains critical to our ability to compete for and win new contracts in each of the regional markets that we pursue. More and more, we believe county correctional facilities are recognizing us as the provider of choice for quality, fully-compliant healthcare services. This contract represents a wonderful start to this year for Conmed and the opportunity to serve another county in the state of Washington.”

The total inmate population is approximately 700, including approximately 50 juveniles in the (separate) Juvenile Detention Facility, and the contract is slated to go effective as of February 1, 2010.

Clark County

Named for Captain William Clark of Lewis and Clark Expedition fame, Clark County is one of the fastest growing regions in the state of Washington and in the Portland, Oregon, metropolitan region. Clark County is located in the southwestern part of the state of Washington across the Columbia River from Portland, Oregon. Today, more than 400,000 people live in Clark County. It was created by the provisional government of the Oregon Territory on August 20, 1845, and at that time covered the entire present-day state. Its county seat is Vancouver, which is also its largest city.

About Conmed Healthcare Management Inc.

Conmed has provided correctional healthcare services since 1984, beginning in the State of Maryland, and currently serves county and municipal correctional facilities in thirty-six counties in seven states, including Arizona, Kansas, Maryland, Oklahoma, Oregon, Virginia and Washington. Conmed’s services have expanded to include mental health, pharmacy and out-of-facility healthcare services.

Forward Looking Statements

This press release may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements with respect to the Company’s plans, objectives, expectations and intentions; and (ii) other statements that are not historical facts including statements which may be identified by words such as “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “projects,” “potentially,” or similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control) including, without limitation, the Company’s ability to increase revenue and to continue to obtain new contracts, contract renewals and extensions.; the ability to obtain bonds; decreases in occupancy levels or disturbances at detention centers; malpractice litigation; the ability to utilize third party administrators for out-of-facility care; compliance with laws and government regulations, including those relating to healthcare; competition; termination of contracts due to lack of government appropriations; material adverse changes in economic and industry conditions in the healthcare market; negative publicity regarding the provision of correctional healthcare services; dependence on key personnel and the ability to hire skilled personnel; increases in healthcare costs; insurance; completion and integration of future acquisitions; public company obligations; and stock price volatility. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including Amendment No. 1 to the Company’s Annual Report on Form 10-K/A filed with the SEC for the fiscal year ended December 31, 2008. Investors and security holders are urged to read this document free of charge on the SEC’s web site at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.