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Compensation Risk Managers, LLC Receives Notice of Administrative Action by New York Workers' Compensation Board
Date:4/17/2008

HAMILTON, Bermuda, April 17 /PRNewswire-FirstCall/ -- CRM Holdings, Ltd. ("the Company") (Nasdaq: CRMH) today announced that Compensation Risk Managers, LLC ("CRM"), a wholly-owned subsidiary of the Company, has received notice from the New York Workers' Compensation Board (the "WCB") that, following an initial investigation, the WCB has determined to pursue an administrative action in order to revoke CRM's third party administrator's license to provide third party claims administrative services to self-insured workers compensation groups in New York. Pursuant to such administrative action, CRM is entitled to present evidence at an administrative hearing to adjudicate the WCB's action to revoke CRM's third party administrative license. While CRM believes the charges are substantially without merit, there can be no assurances that CRM will ultimately prevail in administrative action or any further litigation that may be commenced. The Company cannot estimate what impact, if any, the New York Workers' Compensation Board's administrative action may have on its financial position, operating results or cash flows.

In addition, CRM has received a subpoena from the New York State Attorney General's Office (the "NY Attorney General") requesting documents related to CRM's administration of the Healthcare Industry Trust of New York. CRM intends to fully cooperate with the NY Attorney General's request. To CRM's knowledge, the NY Attorney General has not initiated any proceedings against CRM. CRM believes that the subpoena relates to the concurrent investigation being conducted by the WCB. The Company cannot estimate what, if any, impact this inquiry and any results from this inquiry could have on its financial position, operating results or
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SOURCE CRM Holdings, Ltd.
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