State of Hawaii Contracts with NMHC to Provide Pharmacy Benefits Management Services.

PORT WASHINGTON, N.Y. -- National Medical Health Card Systems, Inc. (Nasdaq: NMHC), a national, independent pharmacy benefit manager (PBM), has executed a contract with the State of Hawaii's Employer-Union Health Benefits Trust Fund (State) to provide its active and retiree beneficiaries with pharmacy benefit management services. The contract takes effect July 1, 2007.

The State's decision to contract with NMHC concluded an intensive evaluation process. "The selection criteria were demanding, with a strong emphasis on performance, service, and expertise in providing pharmacy benefit management services, including Medicare Part D services," explained Jim Smith, NMHC president and CEO. "The State wanted a provider with a demonstrated track record of controlling pharmaceutical cost trends."

"This win further validates our unique approach to pharmacy benefits management," continued Smith. "Our design of custom clinical management strategies and dedicated account management, coupled with our expertise in delivering Medicare Part D services, proved to be extremely important to meeting the State's needs. We are gratified to become the State of Hawaii's Employer-Union Health Benefits Trust Fund's PBM services provider."

About NMHC

National Medical Health Card Systems, Inc. (NMHC) operates NMHC Rx (pharmacy benefits manager or PBM), NMHC Mail (home delivery pharmacy), Ascend (specialty pharmacy solutions), and Integrail (health information solutions), providing services to corporations, unions, health maintenance organizations, third-party administrators, and local governments. Through its clinical programs, value-added offerings, and advanced information systems, NMHC provides quality, cost effective management of pharmacy benefit programs. For more information, call 1.800.251.3883 or visit www.nmhc.com.

Forward-Looking Statements

This press release and any attachment thereto contains forward-looking information about National Medical Health Card Systems, Inc.'s financial results and estimates, business prospects, and products and services that involve substantial risks and uncertainties or other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You can identify these statements by the use of words such as "may," "could," "estimate," "will," "believe," "anticipate," "think," "intend," "expect," "project," "plan," "target," "forecast", and similar words and expressions which identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and involve known and unknown risks and uncertainties, and other factors. Readers are cautioned not to place undue reliance on such statements, which speak only as of the date hereof. For a discussion of such risks, uncertainties and other matters that could cause actual results to differ materially, including risks relating to, among other factors, pricing, competition in the bidding and proposal process, our ability to consummate contract negotiations with prospective clients, dependence on key members of management, government regulation, acquisitions and affiliations, the market for PBM services, readers are urged to carefully review and consider various disclosures made by NMHC in its Annual Report on Form 10-K for the fiscal year ended June 30, 2006, and in its reports on Forms 10-Q and 8-K filed with the U.S. Securities and Exchange Commission. NMHC assumes no obligation to update any forward-looking statements contained in this document or the attachments to reflect new information or future events or developments after the date any such statement is made.