Press release

Catasys Announces Agreement with Optima Health

Sponsored by Businesswire

Catasys, Inc. (NASDAQ: CATS) (“Catasys” or the “Company”), a leading AI
and technology-enabled healthcare company, today announced that it has
entered into an agreement with Optima Health to provide its OnTrak
solution to eligible Commercial members in Virginia. Launch is expected
in the second quarter of 2019.

“By partnering with Catasys, we will be able to offer an additional
level of care to our members; particularly members with diagnoses that
often go untreated,” said Dr. Thomas Lundquist, Chief Medical Officer,
Optima Health. “We are looking forward to the benefits that the OnTrak
program can provide to our members.”

Catasys applies advanced data analytics and predictive modeling to
identify health plan members with unaddressed behavioral health
conditions, whether diagnosed or not, that worsen chronic medical
conditions. Catasys uniquely engages these members, who do not typically
seek behavioral healthcare, and delivers the OnTrak solution. OnTrak is
an integrated suite of services that includes care coaching,
evidence-based psychosocial and medical interventions delivered either
in-person or via telehealth, digital support and in-market Community
Care Coordinators. The program improves member health, resulting in
durable decreases in total healthcare costs.

“Optima Health is committed to improving member quality of life,” said
Rick Anderson, Catasys President and Chief Operating Officer. “We are
excited to offer OnTrak to their eligible members, to support them in
their journey to happier, healthier lives. We are pleased to expand in
Virginia and leverage our existing operations to quickly start providing
services to the Optima Health members in need.”

About Catasys, Inc.

Catasys, Inc. harnesses proprietary big data predictive analytics,
artificial intelligence and telehealth, combined with human interaction,
to deliver improved member health and validated outcomes and savings to
health plans. Our mission is to help improve the health and save the
lives of as many people as possible.

Catasys’ integrated, technology-enabled OnTrak solution–contracted with
a growing number of national and regional health plans–is designed to
treat members with behavioral conditions that cause or exacerbate
co-existing medical conditions such as diabetes, hypertension, coronary
artery disease, COPD, and congestive heart failure, which result in high
medical costs.

Catasys has a unique ability to engage these members, who do not
otherwise seek behavioral healthcare, leveraging proprietary enrollment
capabilities built on deep insights into the drivers of care avoidance.

OnTrak integrates evidence-based psychosocial and medical interventions
delivered either in-person or via telehealth, along with care coaching
and in-market Community Care Coordinators. The program improves member
health and delivers validated cost savings to healthcare payers of more
than 50 percent for enrolled members. OnTrak is available to members of
several leading health plans in California, Connecticut, Florida,
Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts,
Missouri, Nebraska, New Jersey, North Carolina, Oklahoma, Pennsylvania,
South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.

Learn more at

About Optima Health

Optima Health, based in Virginia, provides health insurance coverage to
more than 510,000 members. With more than 30 years of experience, Optima
Health offers a suite of commercial products including
consumer-directed, employee-owned and employer-sponsored plans,
individual health plans, employee assistance programs and plans serving
Medicare and Medicaid enrollees. Its provider network features 26,000
providers including specialists, primary care physicians and hospitals
across Virginia. Optima Health also offers programs to support members
with chronic illnesses, customized wellness programs and integrated
clinical and behavioral health services, as well as pharmacy
management—all to help members improve their health every day. The
company’s goals are to provide better health, be easy to use and offer
services that are a great value. To learn more about Optima Health,

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, which 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 members 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
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please refer to our most recent Securities and Exchange Commission
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