QMed, Inc. Release: Heart Failure Demonstration Project Terminated

EATONTOWN, N.J., Jan. 11 /PRNewswire-FirstCall/ -- QMed, Inc. today announced that PacifiCare Health System has notified the Centers for Medicare and Medicaid Services (CMS), and the Company that PacifiCare will terminate the HeartPartners demonstration project effective February 28, 2006. The project was originally scheduled to end on December 31, 2006 and the early termination will have an approximate $3.5 million revenue impact on QMed in 2006. Michael W. Cox, president and CEO, said, "Termination of the demonstration project has no impact on our Company's strategic plan to expand our special needs offerings to other markets, which is currently proceeding." About QMed, Inc. QMed provides evidence-based clinical information management systems around the country to its health plan customers. The system incorporates Disease Management services to patients and decision support to physicians. The Company's QMedCare subsidiary specializes in serving high-risk populations of Medicare beneficiaries. Health e Monitoring is QMed's subsidiary offering weight,
and health promotion programs. The Company has been selected and operates in two Medicare Demonstrations to test the feasibility of reimbursing its care coordinated DM services in the vast Medicare fee-for-service program. More information on QMed, Inc. can be obtained at , by calling (732) 544-5544 or by emailing investor@qmedinc.com. Except for historical information contained herein, matters discussed in this news release are forward-looking statements that involve risks and uncertainties. They include but are not limited to those relating to the timely implementation of programs, the impact of competitive product introductions, acceptance and pricing, and those risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from any forward-looking statements due to these risks and uncertainties. QMed, Inc. CONTACT: Robert Mosby, QMed, Inc., +1-732-544-5544, Ext. 1107 Web site: