Conmed Healthcare Management, Inc. (NYSE Amex: CONM) has signed an agreement with Galveston, Texas, to provide correctional healthcare services for the County of Galveston Jail. The initial 20-month contract, which is effective February 1, 2012, is expected to generate revenues for Conmed of approximately $5.8 million during its initial term. The contract has the option, at Galveston's request, for three additional one-year renewals, with medical services CPI increases in renewal years for a total aggregate value of approximately $16.2 million.

The contract includes a full suite of medical and mental health services for Galveston detainees, including: physicians, nurses, medication aides and paramedics; a dentist and dental assistant; a psychiatrist and mental health professionals; emergency department and hospitalization; management of pharmacy services; x-ray; and laboratory services. The average daily population of the facility is approximately 1,000 detainees.

"Conmed continues to execute its growth strategy on all fronts, including expanding our geographic footprint through contract wins in new counties and municipalities," said Richard Turner, Chairman and Chief Executive Officer. "We are very pleased to establish a foothold in Texas, our ninth state, through the Galveston agreement, and look forward to providing high quality, cost-effective and fully compliant healthcare services to Galveston detainees."

Galveston County borders the Gulf Coast and Galveston Bay and has a population of approximately 291,000. It is one of 254 counties in Texas, and the county seat is Galveston. League City is the largest city.

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 eight states, including Arizona, Kansas, Maryland, New Jersey, Oregon, Tennessee, 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; inflation exceeding the Company's projection of the inflation rate of cost of services; 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; competition; investigation and auditing of our contracts by government agencies; termination of contracts; 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; public company obligations; 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, 2010. 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.

Conmed Healthcare Management, Inc.
Thomas W. Fry, 410-567-5529
Chief Financial Officer
tfry@conmed-inc.com
or
In-Site Communications, Inc.
Lisa Wilson, 212-452-2793
lwilson@insitecony.com