LOS ANGELES, CALIFORNIA — June 29, 2010 — Catasys, Inc. 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.    

Eligible Health Plan of Nevada members affected by substance dependence will be covered under Catasys’ OnTrak™ 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 Catasys monthly fees for members enrolled into the OnTrak 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.     

“We are pleased Health Plan of Nevada has adopted Catasys OnTrak Program,” said Rick Anderson, Catasys 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 model for other health plans seeking new solutions for reducing costs through better clinical outcomes.”

About Catasys®
Catasys, Inc. provides its integrated substance dependence program OnTrak to health plans, employers and unions through a network of licensed and company managed health care providers. The OnTrak program was designed to address substance dependence as a chronic disease. The program seeks to lower costs and improve member health through the delivery of integrated medical and psychosocial interventions in combination with long term care coaching, including their proprietary treatment program for alcoholism and stimulant dependence. For further information, please visit www.catasyshealth.com.

Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history and lack of outcomes and statistically significant formal research studies, difficulty enrolling members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry; and additional risks factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at http://www.sec.gov

Contact:
Patricia Rouhafza
Catasys, Inc.
(310) 444-4333