American Healthways, Arnett Health Plans Expand Relationship.

NASHVILLE, Tenn. -- American Healthways, Inc. (NASDAQ:AMHC) today announced an expansion and extension of its relationship with Indiana-based Arnett Health Plans, a division of Arnett HealthSystem, to provide diabetes, congestive heart failure (CHF), coronary artery disease (CAD), chronic obstructive pulmonary disease (COPD) and asthma disease management services to eligible members of the health plan's 52,000 fully insured commercial members. The new three-year agreement begins July 1.

"We are committed to improving the health of our members by giving them the support they need to effectively manage their health," said Bob Paskowski, CEO of Arnett Health Plans. "By deepening our relationship with American Healthways, we are confident that we can have a significant impact on quality of care for our chronically ill members while reducing unnecessary health-care expenses."

Arnett Health Plans has utilized American Healthways' StatusOne program as a technology platform for its case management activities since October 1999.

"We are pleased that Arnett Health Plans is putting its trust in American Healthways' ability to achieve the kinds of meaningful and lasting behavior changes that will result in improved health outcomes for its members," said Ben R. Leedle Jr., president and chief executive officer of American Healthways. "This expansion of our services across the care management continuum reflects the health plan synergies we envisioned when we acquired StatusOne, and we look forward to providing even greater value to Arnett Health Plans and its members as a result."

Arnett Health Plans is a local, physician-owned and professionally-managed health maintenance organization (HMO) and third-party administrator (TPA) offered by over 300 employer groups and serving nearly 60,000 Central Indiana residents.

About American Healthways

American Healthways, Inc. is the nation's leading and largest provider of specialized, comprehensive disease management, care enhancement and high-risk health management services proven to improve the quality of health care and lower costs. As of Feb. 28, 2005, the Company had approximately 1.5 million lives under management nationwide. For more information visit www.americanhealthways.com.

Safe Harbor Provisions

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. In order for American Healthways to utilize the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, investors are hereby cautioned that these statements may be affected by the important factors, among others, included in the discussion in Part I, Item 1, and Part II, Item 7, of American Healthways' Annual Report on Form 10-K for the fiscal year ended Aug. 31, 2004, and Part I, Item 2 of American Healthways' Quarterly Report on Form 10-Q for the quarter ended Feb. 28, 2005. Consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. American Healthways undertakes no obligation to update or revise any such forward-looking statements.