Catasys, Inc.

Investment Highlights

• Provides patented, proprietary, novel solution to manage high-cost substance abuse populations for health plans
• Designed to save health plans between $19 million and $40 million per one million members
• Potential market of 191 million covered members; breakeven point achieved at 1.5 million members
• No direct competition
• Program has shown greater than 50% reduction in total healthcare costs for enrolled members
• Projected $8.5 million in annual revenue per one million covered members

Overview
Catasys, Inc. (“Catasys” or “the Company”) provides specialized health management services to health plans, employers and unions through a network of licensed and company-managed health care providers. Catasys’ integrated substance dependence program, OnTrak, is 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 and online tools to aid members in their recovery.

The Company’s proprietary solution addresses a potential market of 191 million members, with projected revenue of $8.5 million per every one million covered members. With no direct competition and a low threshold of only 1.5 million members needed to reach breakeven, Catasys represents a compelling opportunity for investors.