/C O R R E C T I O N — Catasys, Inc./

In the news release, Catasys Expands Rollout of OnTrak-H Solution into Wisconsin with Leading National Health Insurance Provider, issued Jan. 20, 2016 by Catasys, Inc. over PR Newswire, we are advised by the company that there has been an update to the text. The complete, corrected release follows:

Catasys Expands Rollout of OnTrak-H Solution into Wisconsin with Leading National Health Insurance Provider

LOS ANGELES, Jan. 20, 2016 /PRNewswire/ -- Catasys, Inc. (OTCQB: CATS), a provider of proprietary data, predictive analytics, and modeling based behavioral health management services for health plans, announced today that it has launched its OnTrak™-H solution in Wisconsin with one of the nation's leading health plans. The plan's eligible Medicare Advantage members will be covered under OnTrak-H, a 52-week, multi-phase program in which enrolled members receive medical and psychosocial interventions, as well as intensive care coaching.

"Wisconsin represents the first state in which we have announced rolling out the OnTrak-H program since announcing our national agreement with the associated leading health plan partner," said Rick Anderson, Catasys' President and COO. "We are pleased to provide our OnTrak-H solution to eligible Medicare Advantage members in Wisconsin. We look forward to improving the health and lives of our enrolled members and reducing overall treatment costs for the health plan. It is a pertinent time for our solution as mental health and substance dependence spending has doubled over the past decade to approximately $240 billion annually."

According to the U.S. Department of Health and Human Services' National Survey on Drug Use and Health: Mental Health Findings for 2013, approximately 20 million (8.5%) adults in the U.S. met criteria for a substance use disorder (i.e., illicit drug or alcohol dependence or abuse). The National Institute of Mental Health reports anxiety disorders are the most common mental illness in the U.S., affecting 18.1% of the U.S. adult population, or approximately 43 million people age 18 and older. People with an anxiety disorder are three to five times more likely to go to the doctor and six times more likely to be hospitalized for psychiatric disorders than those who do not suffer from anxiety disorders. In addition, in 2013, an estimated 15.7 million U.S. adults aged 18 or older, or 6.7% of all U.S. adults, had at least one major depressive episode in the past year based on a study conducted by the National Survey on Drug Use and Health.

Catasys' OnTrak program is designed to improve patient health while lowering costs to the insurer for underserved populations in which behavioral health conditions are exacerbating co-existing medical conditions. OnTrak has demonstrated effectiveness with a 50% reduction in health care costs for members enrolled in the program as well as reductions in hospital days, ambulance usage, emergency room visits and more thorough identification, engagement and treatment. Catasys currently operates programs in Florida, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New Jersey, Oklahoma, Pennsylvania, West Virginia and Wisconsin.

About Catasys, Inc.
Catasys, Inc. provides big data based analytics and predictive modeling driven behavioral healthcare services to health plans and their members through its OnTrak program. Catasys' OnTrak program--contracted with a growing number of health insurers--is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The program utilizes proprietary analytics and proprietary enrollment, engagement and behavioral modification capabilities to assist members who otherwise do not seek care through a patient-centric treatment that integrates evidence-based medical and psychosocial interventions along with care coaching in a 52-week outpatient program. OnTrak is currently improving member health and, at the same time, is demonstrating reduced inpatient and emergency room utilization, driving a more than 50 percent reduction in total health insurers' costs for enrolled members. Catasys currently operates OnTrak in Florida, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New Jersey, Oklahoma, Pennsylvania, West Virginia and Wisconsin. For further information, please visit catasys.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 our 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, our inability to execute our business plan, increase our revenue and achieve profitability, lower than anticipated eligible members under our contracts, our inability to recognize revenue, lack of outcomes and statistically significant formal research studies, difficulty enrolling new and maintaining existing 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, the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, our ability to raise additional capital when needed and our liquidity. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plan," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Catasys, Inc.