Eligible members of Reliant Medical Group affected by substance dependence will be covered under the OnTrak program, which includes medical and psychosocial interventions, as well as care coaching over a 52 week period. The Company will enroll eligible members directly and also in conjunction with Reliant Medical Group’s programs and staff. Catasys will receive a case rate for members enrolled in the OnTrak program, as well as a portion of the savings generated by the OnTrak program.

The new relationship with Reliant was not included in Catasys’ pipeline. Accordingly, subsequent to this expansion in Massachusetts, Catasys’ pipeline remains at 26 health plans covering 22 states and approximately 12 million covered lives, with approximately 4 million of those lives with health plans that have moved to the last stage of the pipeline. Prospective health plans are considered to have moved into the last stage of the pipeline once they have provided their claims data for analysis, or are in the later stages of discussions or negotiations. The provision of claims data represents a significant step in the contracting process, allowing the Company to provide health plans with a specific estimate of their potential savings from the Company’s OnTrak™ program.

About Catasys®
Catasys, Inc. provides specialized health management services to health plans, employers and unions through a network of licensed and company managed health care providers. The Catasys substance dependence 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