LOS ANGELES, CALIFORNIA — June 16, 2011 — Catasys, Inc. (OTCBB: CATS) announced today that it has begun direct member engagement and other enrollment activities of its OnTrak™ integrated substance dependence program in Kansas. Eligible Coventry Health Care of Kansas commercial and Medicare Advantage members affected by substance dependence are covered under the OnTrak program, which includes medical and psychosocial interventions, as well as a care coaching component over a
52-week period. Catasys will receive monthly fees for members enrolled in the OnTrak program.

“We are pleased to be working with Coventry Health Care of Kansas to provide our OnTrak program for their members in Kansas and Missouri. We expect enrollment and related fees to begin this quarter and for both to grow throughout the year,” said Rick Anderson, Catasys’s President and COO. “This launch represents our second health plan program and our first Medicare Advantage program launch this quarter. Implementation for a separate customer in Massachusetts is continuing and we look forward to launching in the third quarter. After this client is launched, OnTrak will be servicing health plans covering approximately 500,000 lives, and we anticipate announcing additional health plan contracts over the coming quarters.”

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