Catasys Contracts with Coventry Health Care of Louisiana

Business Wire, Inc.

Coventry Health Care Adds Second State to Catasys Program

LOS ANGELES--(BUSINESS WIRE)-- Catasys, Inc. (Pink Sheets: CATS) announced today that it has entered into a multi-year agreement with Coventry Health Care of Louisiana, Inc., a subsidiary of Coventry Health Care Inc., to provide the OnTrak^™ integrated substance dependence solution to its commercial members. This represents the second region of Coventry Health Care, one of the country’s largest health insurance companies, to adopt OnTrak. Program is expected to launch in January of 2012.

Eligible commercial members of Coventry Health Care of Louisiana affected by substance dependence will be covered under the Catasys program, which includes medical and psychosocial interventions, as well as care coaching over a 52 week period. Coventry Health Care of Louisiana will pay Catasys monthly payments covering enrolled members’ OnTrak treatment program. Catasys will enroll eligible members directly and also in conjunction with health plan programs and staff.

“We are pleased to be expanding into our second Coventry region with Coventry Health Care of Louisiana,” said Rick Anderson, Catasys President and COO, “and we look forward to delivering better clinical and financial outcomes for its members. We hope to continue to expand OnTrak among other Coventry plans. After three years of transitioning to the Catasys business model, and given the long sales cycle with health plans, as we close out the year and enter the new year we believe additional contracts will be consummated from our pipeline.”

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 a 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.