Hythiam Announces Catasys Contract With Leading Regional Health Plan

Hythiam, Inc. (OTCBB:HYTM) announced today that the Company has entered into a multi-year agreement with Health Plan of Nevada, Inc., a UnitedHealthcare ^® company and a leading health insurer in Nevada, to provide the Catasys ^® integrated substance dependence solution to its enrolled members. UnitedHealthcare is one of the largest health benefit plan providers in the United States.

Eligible Health Plan of Nevada members affected by substance dependence will be covered under the Catasys program, which includes medical and psychosocial interventions, as well as a care coaching component over a 52 week period. Health Plan of Nevada will pay Hythiam monthly fees for members enrolled into the Catasys program. In cooperation with Health Plan of Nevada, the Company will enroll qualified members through outreach efforts and work with key health plan staff to identify those members eligible for enrollment. Operational implementation has begun, and the program is expected to launch in the third quarter of 2010 with cash flow anticipated to commence shortly thereafter.

The Company expects this agreement and an earlier agreement with a self-insured employer to facilitate adoption of the Catasys program by other health plans. Most health plans have memberships that are many multiples larger than the largest employers.

“We are pleased Health Plan of Nevada has agreed to adopt Catasys,” said Rick Anderson, Hythiam’s President and COO. “We look forward to working with the health plan staff and their members to address the complicated disease of substance dependence. We believe that the agreement with Health Plan of Nevada is the beginning of a trend of adoption of Catasys, and will serve as a catalyst for other health plans seeking new solutions for reducing costs through better clinical outcomes. We also believe the recently legislated healthcare reform provides another driver for health plan and employer adoption.”