American Healthways Declares 2-for-1 Stock Split.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 19, 2003

Ben R. Leedle, Jr., president and chief executive officer of American Healthways, Inc. (Nasdaq/NM:AMHC), today announced that the Company's Board of Directors has approved a 2-for-1 stock split. The stock split will be effected in the form of a 100 percent stock dividend, and the new shares will be distributed on Dec. 19, 2003, to stockholders of record at the close of business on Dec. 5, 2003. American Healthways had 15,796,732 common shares outstanding at Aug. 31, 2003.

Mr. Leedle remarked, "The decision to declare a stock split was motivated by a strong desire on our part to obtain a wider distribution and improve the market liquidity of our stock. In addition, we remain confident in American Healthways' prospects for continued profitable growth."

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 the Company 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, set forth below, and consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. The important factors include: the Company's ability to sign and execute new contracts for health plan disease management services and care enhancement services and to sign and execute new contracts for hospital-based diabetes services; the risks associated with a significant concentration of the Company's revenues with a limited number of health plan customers; the Company's ability to effect cost savings and clinical outcomes improvements under health plan disease management and care enhancement contracts and reach mutual agreement with customers with respect to cost savings, or to effect such savings and improvements within the time frames contemplated by the Company; the Company's ability to accurately forecast performance under the terms of its health plan contracts ahead of data collection and reconciliation; the ability of the Company to collect contractually earned incentive performance bonuses; the ability of the Company's health plan customers to provide timely and accurate data that is essential to the operation and measurement of the Company's performance under the terms of its health plan contracts; the Company's ability to resolve favorably contract billing and interpretation issues with its health plan customers; the ability of the Company to effectively integrate new technologies such as those encompassed in its care enhancement initiatives into the Company's care management information technology platform; the Company's ability to renew and/or maintain contracts with its customers under existing terms or restructure these contracts on terms that would not have a material negative impact on the Company's results of operations; the ability of the Company to implement its care enhancement strategy within expected cost estimates; the ability of the Company to obtain adequate financing to provide the capital that may be needed to support the growth of the Company's health plan operations and to support or guarantee the Company's performance under new health plan contracts; unusual and unforeseen patterns of health care utilization by individuals with diabetes, cardiac, respiratory and/or other diseases or conditions for which the Company provides services, in the health plans with which the Company has executed a disease management contract; the ability of the health plans to maintain the number of covered lives enrolled in the plans during the terms of the agreements between the health plans and the Company; the Company's ability to attract and/or retain and effectively manage the employees required to implement its agreements with hospitals and health plan organizations; the impact of litigation involving the Company; the impact of future state and federal health care legislation and regulations on the ability of the Company to deliver its services and on the financial health of the Company's customers and their willingness to purchase the Company's services; and general economic conditions. The Company undertakes no obligation to update or revise any such forward-looking statements.

American Healthways (AMHC) is the nation's leading and largest provider of specialized, comprehensive disease management and care enhancement services proven to improve the quality of health care and lower costs. As of Aug. 31, 2003, the Company had 838,000 actual lives under management nationwide. For more information visit www.americanhealthways.com.