American Healthways, Blue Cross and Blue Shield of Minnesota Add Depression and ``Best-of-Breed'' Tobacco Cessation Programs.

NASHVILLE, Tenn. -- Collaboration, Integration Continue to Fuel Innovation for Nation's Most Extensive Disease Management Program

American Healthways, Inc. (Nasdaq:AMHC) today announced the expansion of its product suite with strategic partner Blue Cross and Blue Shield of Minnesota (Blue Cross) to include a disease management program for depression and state-of-the-art tobacco cessation services for the health plan's 2.6 million members, about 250,000 of whom are tobacco users.

"The beauty of our partnership with American Healthways is the speed with which we have been able to develop and implement fully integrated solutions to address the real-life and holistic needs of our members," said Blue Cross Chief Medical Officer Bill Gold, M.D. "Our collaboration with American Healthways has enabled us to bring the most integrated and comprehensive disease management program offering available to our members rapidly and seamlessly."

An estimated 30,000 fully insured members initially will benefit from the depression program. Blue Cross will offer the program to virtually all of its fully insured members, as part of its BluePrint for Health(R) care support program. Self-insured purchasers can purchase the program for their employees this spring.

As part of the newly developed depression program, American Healthways nurses will regularly call and be on call for members with depression to educate and support them regarding medications, side effects, warning signs of relapse, healthy lifestyle behaviors and identification of treatment barriers. Nurses will screen members using a simple depression screening tool, provide the results to the members' doctors, collaborate with Blue Cross' pharmacy benefits manager to monitor medication compliance and work to help patients understand and stick to their doctors' treatment plans.

Blue Cross also is the first health plan in the country to sign on for tobacco-cessation services now available through an agreement between American Healthways and Free & Clear(R) Tobacco Treatment Program, a nationally recognized, evidence-based program that has helped more than 500,000 people quit smoking over nearly 20 years. Free & Clear - the recognized industry leader with nearly 50 peer-reviewed published outcomes studies - uses a comprehensive approach to effectively tackle all three elements of tobacco addiction: physical, behavioral and psychological. Under the agreement, American Healthways nurses, who already screen members for tobacco use, will now be able to transfer members directly to the Free & Clear program.

The Free & Clear program includes proactive phone-based treatment sessions with a professional tobacco treatment specialist over the course of the program. Participants also can call in to Free & Clear for the duration of their treatment whenever they need additional support. The tobacco treatment specialist works with participants one-on-one to develop a tailored quit plan and provides guidance and support during the quit process, as well as decision support for medications including nicotine replacement products (patch, gum or lozenges) or bupropion SR. Participants also receive a printed Quit Kit of materials that help them actively self-manage their tobacco dependence between calls.

"The incidence of smoking and depression among Americans is substantial, and we are excited to help Blue Cross and Blue Shield of Minnesota reduce the clinical and financial impacts of both within their population," American Healthways President and CEO Ben R. Leedle Jr. said. "We also are proud to further integrate with Blue Cross and drive greater effectiveness of their care enhancement programs, which continue to serve as a model for the disease management industry."

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 Nov. 30, 2004. 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.

About Blue Cross and Blue Shield of Minnesota

Blue Cross, a not-for-profit, taxable organization with headquarters in the St. Paul suburb of Eagan, is the largest health plan based in Minnesota, covering 2.6 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago.

About Free & Clear

Free & Clear, Inc. is a highly specialized, health risk treatment provider for health plans, employers and government agencies. Free & Clear helps its customers improve the health and risk status of their populations and control related costs by treating behaviors known to be high risk factors for chronic disease. More than 40 million people have access to the Free & Clear Tobacco Treatment Program, which is the only commercial tobacco treatment program in the U.S with proof of effectiveness published in multiple peer reviewed, scientific journals. Free & Clear is based near Seattle, Wash. More information about Free & Clear can be found at www.freeclear.com.

About American Healthways

American Healthways 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 Nov. 30, 2004, the Company had over 1.4 million lives under management nationwide. For more information, visit www.americanhealthways.com.