Conmed Healthcare Management, Inc. Signs Agreement with City of Virginia Beach, Virginia

Conmed Healthcare Management, Inc. (NYSE Amex:CONM), a leading full service provider of correctional facility healthcare services to county and municipal detention centers, today announced that it has signed a full-service agreement with the City of Virginia Beach, Virginia, for an initial three-year term with options for two one-year extensions at the City’s option. This contract with a new customer is expected to generate a base level of approximately $17.5 million in revenues for Conmed throughout the term of the contract, with the initial annual rate of approximately $3.5 million. The contract includes a full suite of services for the facility’s inmates including medical, dental, mental health and administrative staffing; pharmacy, laboratory and X-ray services; management of emergency room, hospitalization and other out-of-facility services. Additionally, a full electronic health record system will be implemented. Price increases are based on the Medical Services Consumer Price Index. The total inmate population of the City of Virginia Beach is approximately 1,350. The contract is effective October 1, 2010.

"We continue to be gratified by our expanded presence in Virginia and look forward to providing quality medical and mental health care services to our newest client, the City of Virginia Beach, which will be the sixth jurisdiction that we are serving in the state,” commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. "The new contract reflects our commitment to providing the quality and standard of care that exceeds expectations with our clients and allows them to achieve operational and budgetary efficiencies. We believe that our reputation for delivering efficient quality care resonated with the City during their contract awards process.”

About Virginia Beach, Virginia

Virginia Beach is an independent city located in the Hampton Roads metropolitan area of Virginia, on the Atlantic Ocean at the mouth of the Chesapeake Bay. Virginia Beach is the most populous city in Virginia and the 41^st largest city in the United States, with an estimated population of 440,000 (as of 2008).

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; 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 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.