Conmed Healthcare Management, Inc. Signs Agreement with Haywood County, Tennessee

Conmed Healthcare Management, Inc. (NYSE Amex: CONM) has signed a full-service agreement with Haywood County, Tennessee, to provide correctional healthcare services for the new Haywood County Jail in Brownsville for an initial three-year term, beginning April 1, 2011, with the option for ongoing mutually agreed one-year renewals. The first year of the contract is expected to generate annual revenues for Conmed of approximately $360,000.

The contract includes a full suite of services for Haywood County Jail detainees, including medical, dental and administrative staffing (excluding mental health); medical supplies, laboratory and mobile x-ray services; management of emergency room admissions, hospitalization and other out-of-facility services. The approximate average detainee population of the facility is currently 125, and is expected to grow to as many as 200 detainees.

"This contract win marks our entry into our eighth state, Tennessee, an important milestone as we endeavor to expand our services to a growing number of jurisdictions nationally. We look forward to providing quality medical and healthcare services to detainees in the new Haywood County Jail,” commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. "We aim to drive revenue growth by continuing to expand our footprint to serve additional counties in both current and new states, bringing to them Conmed’s quality care that is efficient, consistent, and budget-conscious.”

About Conmed

Conmed has provided correctional healthcare services since 1984, beginning in the State of Maryland, and currently serves county and municipal adult and juvenile correctional facilities in seven states, including Arizona, Kansas, Maryland, Oklahoma, Oregon, 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; investigation and auditing of our contracts by government agencies; 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; influence of certain stockholders; increases in healthcare costs; insurance; completion and integration of future acquisitions; 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 Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2009. 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.