Chronimed Awarded Exclusive HIV Medication Distribution Contract by Health Resources and Services Administration; One Year Contract Worth $20 Million in Revenue.

MINNEAPOLIS -- Chronimed Inc. (Nasdaq:CHMD) announced today that the Health Resources and Services Administration (HRSA) of the Federal Government awarded it a one year contract as exclusive distributor of HIV medications for approximately 1,700 clients on certain State AIDS Drug Assistance Program (ADAP) waiting lists. In accordance with the contract, Chronimed will verify eligibility, purchase medications based on approved State ADAP formularies, and dispense medications to individuals on the identified state ADAP waiting lists.

Chronimed Chairman and Chief Executive Officer Henry F. Blissenbach commented, "We are pleased to be selected as the exclusive distributor of these much needed medications to individuals that are currently on waiting lists. As the leading provider of HIV/AIDS medications in the country, we have the experience necessary to meet the complex needs of all HIV positive individuals."

This federal program will provide medications to people with HIV/AIDS in Alabama, Alaska, Colorado, Idaho, Iowa, Kentucky, Montana, North Carolina, South Dakota and West Virginia. Health Resources and Services Administration, which manages the Ryan White Comprehensive AIDS Resources Emergency Act programs, oversees the contract.

About Chronimed Inc.

Chronimed Inc. is a specialty pharmacy that distributes prescription drugs and provides specialized therapy management services for people with certain conditions, including HIV/AIDS, organ transplants, and diseases treated with biotech injectable medications. Chronimed works with patients, physicians and other health care providers, pharmaceutical manufacturers, health plans and insurers, and government agencies to improve clinical and economic outcomes. Chronimed's web site address is www.chronimed.com.

Information contained in this press release and associated schedules, other than historical or current facts, should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements reflect management's current views of future events and financial performance that involve a number of risks and uncertainties. These factors include, but are not limited to, the following: our ability to maintain satisfactory on-going arrangements with biopharmaceutical manufacturers and wholesalers, and their ability to satisfy our volume, pricing, and product requirements; decrease in demand for drugs we handle; changes in Medicare or Medicaid reimbursement, rules and regulations; loss of relationships with, and/or significant reductions in reimbursements from, payors (including Aetna or other material contracts); negative cost containment trends or financial difficulties by our payors; changes in or unknown violations of various federal, state, and local regulations; costs and other effects of legal or administrative proceedings; the adoption of new or changes to existing accounting policies and practices and the application of such policies and practices; the amount and rate of growth in our selling, general and administrative expenses; the impairment of a significant amount of our goodwill; the effects of and changes in, trade, monetary and fiscal policies, laws and regulations; other activities of government agencies; increased competition; our ability to obtain competitive financing to fund operations and growth; continuing qualifications to list our securities on a national stock exchange; developments in medical research affecting the treatment or cure of conditions for which we distribute medications; the ability of management and accounting controls to assure accurate and timely recognition of revenue and earnings; computer system, software, or hardware failures or malfunctions; loss or retirement of key executives or changes in ownership; and adverse publicity, news coverage, and reporting by independent analysts. These and other risks and uncertainties are discussed in further detail in the cautionary statement filed as Exhibit 99.1 as part of Chronimed's annual report and Form 10-K filed with the Securities and Exchange Commission.