Conmed Healthcare Management, Inc. Announces Six-Year $14.7 Million Agreement with the Harford County Detention Center

Business Wire, July 31, 2007

LA PLATA, Md. -- Conmed Healthcare Management, Inc. (OTCBB:CMHM) announced the execution of a six-year medical service agreement with the Harford County Detention Center in Maryland generating approximately $2.4 million per year or $14.7 million in total revenue over the full six year contract period. The Agreement covers the period from June 1, 2007, to June 30, 2008, and is renewable thereafter for up to five years in five one-year increments.

Conmed has been providing medical and other services to the Harford County Detention Center since March 14, 2002 under a pervious contract. The new contract to provide full medical services that include; medical, mental health, dental and other specialty health care services, plus related administrative support, was awarded following the completion of a public bidding process by Harford County. Annual revenue payable to Conmed under the agreement is also subject to yearly increases and adjustments base on the inmate population.

Dr. Richard W. Turner, President and CEO of Conmed stated, "Winning new medical service contracts with existing customers after the old one terminates and is sent out to public bid is most satisfying and, I believe, a strong validation of the quality medical services we provide. Conmed has a long history of retaining existing accounts and entering this new contract with the Harford County Detention Center maintains our track record of retaining every major account during the last 18 years. I would like to thank the Conmed employees at the Harford County Detention Center for their quality work and tireless effort plus Harford County for their continued support."

About Conmed

Conmed has provided correctional healthcare services since 1984, beginning in the state of Maryland, and currently services 20 detention centers and facilities at the county level throughout the United States. 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 identified by words such as "may", "could", "would", "should", "believes", "expects", "anticipates", "estimates", "intends", "plans" 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 including those contained in its public filings. 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 contract renewals and extensions.)