Revenues and Earnings

IRVINE, California, February 3, 2009 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.34 for the quarter ended December 31, 2008, compared to $0.43 in the same quarter of the prior year. For the nine months ended December 31, 2008 earnings were $1.09 per share compared to the same period in the prior year of $1.22 per share.

The Company reported quarterly revenues of $77.0 million, up from prior year’s quarterly revenue of $76.7 million. For the nine months ended December 31, 2008, revenues were $233 million, representing a 3.4% increase from the $225 million in revenues achieved in the same period of the prior year.

During the quarter the Company announced plans to provide agent services under the new Medicare legislation requiring expanded reporting for insurers, third party administrators and employers. The Company currently provides Medicare Set-Aside (MSA) services for workers' compensation and general liability customers throughout the country, and is expanding that service offering to include communications soon to be mandated under the legislation covering Centers for Medicare/Medicaid Services (CMS) requirements.

CorVel currently conducts electronic interfaces with various government entities as well as between itself and other private sector payors. In addition, the Company offers clearinghouse services providing electronic communications with healthcare providers and plans to expand these activities to include communications with CMS. Such activities reflect the growing volume of electronic activity in healthcare records processing and leverage the Company’s longstanding investment in related information processing facilities and software.

The Company continued to expand its Enterprise Comp® claims management initiative as well as its line of directed care network services. New software releases will add workflow capabilities that will enable both efficiency and scalability in both product lines.

About CorVel

CorVel Corporation (/) is a national provider of leading-edge services and solutions in the field of disability management. CorVel specializes in applying information technology and e-commerce applications to improve healthcare management in the workers' compensation, group health, auto and disability management insurance markets. The Company provides networks of preferred providers, claims administration, case management, utilization management, and medical bill review to more than 2,000 clients nationwide. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company's current expectations, estimates and projections about the Company, management's beliefs, and certain assumptions made by the Company, and events beyond the Company's control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to the Company's financial statements and results, and the extension of the Company’s services relating to compliance with new Medicare legislation and electronic processing regulations. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company's actual results to differ materially and adversely from those expressed in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to, factors described in this press release and the Company's filings with the Securities and Exchange Commission, including "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2008 and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2008 and September 30, 2008. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Quarterly Results - Income Statement (unaudited)
Quarter and Nine Months Ended December 31, 2007 and 2008
Quarter Ended December 31
  Quarter Ended Quarter Ended
  September 30, 2007 September 30, 2008
Revenues 76,679,000 76,962,000
Cost of revenues 56,279,000 59,300,000
Gross profit 20,400,000 17,662,000
General and administrative 10,584,000 10,296,000
Income from operations 9,816,000 7,366,000
Income tax expense 3,829,000 2,862,000
Net income 5,987,000 4,504,000
Earnings per share  
Basic $0.43 $0.34
Diluted $0.43 $0.34
Weighted shares  
Basic 13,813,000 13,316,000
Diluted 13,964,000 13,439,000
Nine Months Ended September 30
  Nine months ended Nine months ended
  December 31, 2007 December 31, 2008
Revenues 224,526,000 233,018,000
Cost of revenues 167,291,000 176,564,000
Gross profit 57,235,000 56,454,000
General and administrative 29,059,000 31,825,000
Income from operations 28,176,000 24,629,000
Income tax expense 10,996,000 9,594,000
Net income 17,180,000 15,035,000
Earnings per share  
Basic $1.24 $1.10
Diluted $1.22 $1.09
Weighted shares  
Basic 13,889,000 13,632,000
Diluted 14,062,000 13,815,000
Quarterly Results - Condensed Balance Sheet (unaudited)
March 31, 2008 and December 31, 2008
  March 31, 2008 September 30, 2008
Cash 17,911,000 12,136,000
Accounts receiveable, net 39,164,000 37,824,000
Prepaid expenses and taxes 5,242,000 6,148,000
Deferred income taxes 4,076,000 4,130,000
Property, net 30,569,000 29,835,000
Goodwill and other assets 43,613,000 45,611,000
   Total 140,575,000 135,684,000
Accounts and taxes payable 17,664,000 18,797,000
Accrued liablities 16,473,000 18,322,000
Deferred tax liability 7,249,000 7,245,000
Paid in capital 80,222,000 83,457,000
Treasury stock -162,302,000 -184,497,000
Retained earnings 178,458,000 193,493,000
   Total 140,575,000 135,684,000