Conmed Healthcare Management, Inc. Wins Two New Contracts

Conmed Healthcare Management, Inc. (NYSE Amex: CONM) has entered into full-service agreements with Newport News, Virginia and Josephine County, Oregon to provide correctional healthcare services for the Newport News Juvenile Detention Center and the Josephine County Jail, respectively. Both contracts were effective July 1, 2012.

For the Josephine County Jail, Conmed will provide correctional healthcare services including twelve hour per day, seven day per week nursing coverage, laboratory, mobile x-ray, pharmacy services, medical supplies and management of out-of-facility services (UM/UR). The contract is expected to generate revenues for Conmed of approximately $0.3 million during the initial 12-month term, and has the option for additional one-year renewals. The Josephine County Jail has an average inmate population of 60.

For the Newport News Juvenile facility, Conmed will provide correctional healthcare services including physicians, round-the-clock nurses, administrative staff, laboratory services, mobile x-ray, pharmacy services and management of out-of-facility services (UM/UR). The contract is expected to generate revenues for Conmed of approximately $0.4 million during the initial 12-month term, and has the option for additional one-year renewals. The Newport News Juvenile Detention Center has an average youth population of 50.

“We welcome the Josephine County and Newport News Juvenile facilities to the Conmed family through these new agreements, and are pleased to be providing cost-effective, compliant healthcare services to their detainees,” said Richard Turner, Chairman and Chief Executive Officer. “These contract wins exemplify our strategy to leverage our local presence for geographic expansion. We have effectively and efficiently served the adult facility in Newport News since August 2011, and now serve the city’s juvenile facility as well. With the addition of Josephine County, we are now serving five of the 36 counties in Oregon. We look forward to continued growth going forward as we execute our business model, offering quality correctional medical and mental health services for our clients.”

Newport News is an independent city in the Hampton Roads metropolitan area, located at the southeastern end of the Virginia peninsula, on the north shore of the James River. The city's economy is very connected to the military, with many residents employed at Huntington Ingalls Shipbuilding, the U.S. Air Force-U.S. Army installation at Joint Base Langley-Eustis, and other military installations and suppliers. Newport News also boasts a large boating industry, and serves as a junction between the rails and the sea with the Newport News Marine Terminals. Of its approximately 180,000 residents, 24% are under age 18.

Josephine County is located in Southwestern Oregon, bordered on the south by California, and two hours from the Pacific coast. The U.S. government owns the majority of the land within the county boundaries. Of its approximately 83,000 residents, 23,000 live in Grants Pass, the county seat, in which the Josephine County Jail is located.

About Conmed

Conmed has provided correctional healthcare services since 1984, beginning in the State of Maryland, and currently serves county and municipal correctional facilities in ten states: Arizona, Kansas, Kentucky, Maryland, New Jersey, Oregon, Tennessee, Texas, Virginia and Washington. For more information, visit us at www.conmedinc.com.

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; inflation exceeding the Company’s projection of the inflation rate of cost of services under multi-year contracts; 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; investigation and auditing of our contracts by government agencies; 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; influences of certain stockholders; increases in healthcare costs; insurance; public company obligations; limited liability of directors and officers; the Company’s ability to meet the NYSE Amex continued listing standards; 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 U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2011. Investors and security holders are urged to read these documents 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, whether as a result of new information, future events or otherwise.