LOS ANGELES--(BUSINESS WIRE)--March 14, 2006--Hythiam, Inc. (NASDAQ:HYTM), a healthcare services management company that licenses the PROMETA physiological protocols designed to treat alcohol, cocaine, and methamphetamine dependence, announced today that its PROMETA protocols have successfully passed review by CompCare's New Technology Committee, and are now approved for reimbursement. CompCare, based in Tampa, Florida, is a leading provider of behavioral healthcare services to managed care organizations serving Medicaid, Medicare, and commercial payers. CompCare and Health Alliance Network, Inc., strategic marketing partners of CompCare for commercial business, will market PROMETA to its existing and new third party payer clients as part of the first acute medical substance abuse disease management program. Nearly all of CompCare's approximately 800,000 behavioral health managed lives have some level of insurance benefit to treat substance dependency.

CompCare currently services its clients' behavioral health needs through an extensive network of skilled healthcare practitioners as well as a combination of specialized at-risk population and disease management offerings. The addition of a PROMETA-driven disease management offering is unique in the marketplace, providing a new comprehensive tool for the treatment of substance dependency.

"Studies showing the relationship between mental health and substance abuse disorders and increased medical costs have generated new interest in medical/behavioral integration. We believe that new addiction treatment measures for managed care organizations under the Health Plan Employer Data and Information Set (HEDIS) will lead to a paradigm shift in how alcoholism and substance dependency are treated," said Mary Jane Johnson, President and CEO of CompCare. "As a result, CompCare has tailored a specialized disease management approach that seeks to jump-start treatment using the PROMETA protocols. Our integrated healthcare management then follows the patient into recovery through care management technology. Specialized clinicians perform outreach; coordinate medical, psychiatric and traditional substance abuse treatment; maximize the support of family and friends in an effort to reintegrate the patient into community, faith and work."

The National Committee for Quality Assurance (NCQA), a non-profit with a mission to improve health care developed and annually publishes HEDIS, which is used by 90% of the nation's health plans to assess their performance in treating chronic diseases. Outcomes monitored by the NCQA are published annually placing direct accountability upon health plans for their treatment outcomes.

Johnson continued, "Now, with the option of an acute medical intervention such as PROMETA, CompCare believes that it will be in a position to compete aggressively for reimbursement and additional contracts with state Medicaid and Medicare programs, employer groups, and managed care organizations."

"CompCare is demonstrating leadership and vision by becoming both the first managed behavioral health care organization to approve PROMETA as reimbursable, as well as the first managed care organization to offer a true disease management solution for substance dependencies on alcohol and stimulants," said Terren S. Peizer, Chairman and CEO of Hythiam. "We believe that many other third party payers are starting to recognize the tremendous need for disease management in substance dependence, and it is only a matter of time before physiological approaches such as PROMETA are used. Also, through our data strategy, Hythiam is committed to providing more outcomes data than any other alcoholism and addiction treatment to date."

Peizer continued, "In the current environment, there is an increased urgency toward finding solutions for the management of alcohol and substance dependency. The costs to employers and employees are staggering. Last month, the results of a study were released that found that each meth-using employee costs his or her employer $47,500 a year in terms of lost productivity, absenteeism, higher health care costs, and higher workers' compensation costs. By working with CompCare and the Health Alliance Network, we will make a strong case for developing a premium reimbursement for this disease built upon PROMETA."

Tony Milone, President of Health Alliance Network, Inc. said, "A solution is needed for the employers, their employees, as well as third party payers who are now incurring the financial burden caused by this alcohol and substance dependency. According to government figures and despite the fact that less than one out of six people who needs treatment is actually helped, the annual healthcare expenditures for alcoholics alone is in excess of $26 billion. Again, just for alcoholism, there is the tremendous annual productivity loss of billions of dollars. When you add in the additional costs for substance dependence to illicit stimulants and other drugs the need for an effective mode of treatment and an effective disease management solution becomes very apparent."

Mr. Milone is President and CEO of Health Alliance Network, Inc., a National Managed Care Company. Health Alliance Network, Inc. serves many diverse organizations such as insurance companies, TPAs and Taft-Hartley Funds. Mr. Milone has 30 years of experience in the healthcare industry, which includes his past position as Chairman of QualCare Alliance Networks, Inc., a New Jersey based, predominantly hospital-owned, full service managed care company.

Hythiam will extend awareness of the PROMETA protocols to the employer groups and third party payers serviced by CompCare, and when qualified physicians who can administer the protocols are located in CompCare's provider network, Hythiam will then train and license those physicians. Health Alliance Network will work with CompCare to market PROMETA to additional large employers, government groups and third party payers that are not current CompCare customers. Hythiam will collect its licensing fees from CompCare based upon total treatments as well as potential shared cost savings from disease management contracts.

About Comprehensive Care Corporation (CompCare)

Established in 1969, CompCare provides behavioral health, substance abuse, and employee assistance programs for governmental agencies, managed care companies and employer groups throughout the United States. Headquartered in Tampa, Florida, CompCare operates regional service centers in Florida, Michigan, and Texas; serves approximately 800,000 covered individuals nationwide; and has a network of approximately 8,000 qualified behavioral health practitioners. With 36 years of experience in the industry, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services, and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. To learn more about CompCare, please visit www.compcare.com.

About PROMETA

Hythiam's PROMETA treatment protocols are designed for use by healthcare providers seeking to treat individuals diagnosed with dependencies to alcohol, cocaine or methamphetamines, as well as combinations of these drugs. The PROMETA protocols include medically supervised procedures designed to address both the neurochemical imbalances in the brain and some of the nutritional deficits caused or worsened by substance dependence. Changes in brain chemistry and function play an important role in the physical and behavioral symptoms of substance dependence, including tolerance, withdrawal symptoms, craving and relapse. The PROMETA protocols also provide for one-month of prescription medication and nutritional supplements, combined with psychosocial or other recovery-oriented therapy chosen by the patient in conjunction with their treatment provider. As a result, PROMETA represents an innovative approach to managing alcohol, cocaine or methamphetamine dependence that is designed to address physiological, nutritional and psychosocial aspects of the disease, and is thereby intended to offer patients an opportunity to achieve sustained recovery.

About Hythiam, Inc.

Hythiam(R) is a healthcare services management company, focused on delivering solutions for those suffering from alcoholism and other substance dependencies. Hythiam researches, develops, licenses and commercializes innovative physiological treatment protocols that seek to address substance dependence. Additionally, Hythiam provides proprietary administrative services to assist physicians and facilities with staff education, marketing and sales support, and outcomes tracking for data analysis. For further information, please click on www.hythiam.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, limited operating history and lack of statistically significant formal research studies, the risk that treatment protocols might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the healthcare 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.

LOS ANGELES--(BUSINESS WIRE)--March 8, 2006--Hythiam, Inc. (Nasdaq:HYTM), a healthcare services management company licensing the PROMETA physiological protocols designed to treat alcohol, methamphetamine and cocaine dependence, announced today that the Pierce County Alliance in the State of Washington will conduct a pilot to determine PROMETA's effectiveness as a medical treatment for methamphetamine and cocaine dependency, and its effect on reducing recidivism among drug court offenders. The Pierce County Alliance is the primary substance dependence treatment provider for the County's drug court offenders. Funding for this 50 person pilot will be provided through federal, state, and county sources.

"Should PROMETA prove to be as effective within the Pierce County Alliance drug offender population as it appears to be, the State will consider its effectiveness for use in treatment so that stimulant dependent individuals in Washington will be able to benefit from this therapy," explained Doug Allen, Acting Director of the Division of Alcohol and Substance Abuse at the Department of Social and Health Services. "Methamphetamine addiction is a serious issue and has ravaged Pierce County and is escalating throughout the state. Washington is pleased to join the States of Louisiana, Idaho, and Indiana in conducting accelerated commercial pilots of PROMETA."

"Our county has been at the forefront of working with new therapies for the treatment of chemical dependency," said Dr. Terree Schmidt-Whelan, Executive Director of the Pierce County Alliance. "Yet we still face challenges in attaining high rates of long-term, positive treatment outcomes because physical symptoms such as cravings and high anxiety interfere with an individual's ability to focus on behavioral interventions. Traditional psychosocial therapy needs to be supplemented in order for us to gain a quantum increase in the successful treatment of offenders with stimulant addiction. We are eager to study a physiological alternative such as PROMETA to see how it might be the missing piece in our treatment paradigm for methamphetamine and cocaine."

The Pierce County Alliance is the county-funded treatment provider for drug court participants and will be administering the PROMETA protocols to drug court participants who enroll in the pilot.

According to a 2005 report released by the State of Washington's Department of Social and Health Services, the waiting list for treatment services is growing rapidly. Some of this growth is attributable to increased emphasis on treatment completion and retention, which results in better outcomes. However, up to 47% of clients already assessed as needing treatment are never admitted to treatment at all.

"The State of Washington is to be commended for taking action in order to meet its mandate to increase access to treatment," said Terren S. Peizer, Chairman and CEO of Hythiam. "PROMETA's inherent scalability as an acute, medical outpatient intervention will allow for the ability to effectively handle increasing patient volumes."

Peizer continued, "We find that a collaborative model is beginning to emerge, one where the regulatory bodies for health, substance abuse, and criminal justice are demonstrating a willingness to partner together for the improvement of their citizens' lives. The State of Washington and Pierce County's leadership in evaluating PROMETA for stimulant addiction will serve as yet another model for states looking for innovative, physiological treatment for substance dependency. Furthermore, we believe that PROMETA will be validated as a critical tool for use by them and other states."

Fifty methamphetamine dependent participants in the drug court who appear motivated to discontinue methamphetamine and/or cocaine use but are unable to do so because of cravings will be medically evaluated by a physician trained in administering the PROMETA treatment protocol. If the physician determines that the participants meet the selection criteria of this pilot and have no contraindications to PROMETA treatment, they will be eligible to proceed with treatment. Agreeing to PROMETA treatment will not affect participants' status within drug court. Participants will continue the regular psychosocial and monitoring services of the drug court.

In addition, for the 90 days following the first infusion of PROMETA, a case manager or coordinator will complete weekly data collection forms. Measures will include:

    (1) Case manager assessments

    (2) Urine drug screening results

    (3) Court sanctions

    (4) Self report of methamphetamine and/or cocaine craving

Drug court participants who will be considered successful in this pilot will be those who complete both infusion treatment cycles and the 60 day follow-up and are rated much improved by their case manager. Participants will also be classified as successful if they have no more than one episode of methamphetamine use during the last 60 days of monitoring and are not incarcerated for a new methamphetamine and/or cocaine related offense perpetrated during the last 60 days of monitoring.

About PROMETA

Hythiam's PROMETA treatment protocols are designed for use by healthcare providers seeking to treat individuals diagnosed with dependencies to alcohol, cocaine or methamphetamines, as well as combinations of these drugs. The PROMETA protocols include medically supervised procedures designed to address both the neurochemical imbalances in the brain and some of the nutritional deficits caused or worsened by substance dependence. Changes in brain chemistry and function play an important role in the physical and behavioral symptoms of substance dependence, including tolerance, withdrawal symptoms, craving and relapse. The PROMETA protocols also provide for one-month of prescription medication and nutritional supplements, combined with psychosocial or other recovery-oriented therapy chosen by the patient in conjunction with their treatment provider. As a result, PROMETA represents an innovative approach to managing alcohol, cocaine or methamphetamine dependence that is designed to address physiological, nutritional and psychosocial aspects of the disease and is thereby intended to offer patients an opportunity to achieve sustained recovery.

About Hythiam, Inc.

Hythiam(R) is a healthcare services management company, focused on delivering solutions for those suffering from alcoholism and other substance dependencies. Hythiam researches, develops, licenses and commercializes innovative physiological treatment protocols that seek to address substance dependence. Additionally, Hythiam provides proprietary administrative services to assist physicians and facilities with staff education, marketing and sales support, and outcomes tracking for data analysis. For further information, please click on www.hythiam.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, limited operating history and lack of statistically significant formal research studies, the risk that treatment protocols might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the healthcare 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.