American Healthways Expands Board of Directors; Appointments of Ballantine, Bisgard Strengthen Board for Company's Future Growth.

Business Editors/Health/Medical Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 18, 2003

American Healthways (NASDAQ/NM:AMHC) today announced the addition of John W. Ballantine and Jay Crispin Bisgard, M.D. to its Board of Directors. Both appointments are effective immediately. Mr. Ballantine's term runs through 2005, and Dr. Bisgard's term runs through 2006.

"These additions bring unique and important perspectives to American Healthways' Board and further position and strengthen the Company for expected future growth," Chairman and CEO Thomas G. Cigarran said. "Mr. Ballantine and Dr. Bisgard bring with them a wealth of experience in the financial, employer and government sectors, and their presence on the Board will continue to ensure the strong, independent governance of our organization."

Ballantine, 57, has been a private investor since 1998, when he left First Chicago NBD Corporation/The First National Bank of Chicago as its chief risk management officer and executive vice president. During his 28-year career with First Chicago, Ballantine held various senior positions, including head of international banking, head of New York banking, and chief credit and market risk officer. He currently serves on the boards of Scudder Funds, First Oak Brook Bancshares and Enron Corporation (post bankruptcy).

Ballantine has a bachelor's degree from Washington and Lee University and a Master of Business Administration from the University of Michigan, Ann Arbor. He is a resident of Chicago.

"I am pleased to join the Board of such an innovative and growing company, and I look forward to working with its Board and management team to continue its success," Mr. Ballantine said.

Dr. Bisgard, 60, has served as corporate medical director for Delta Air Lines, Pacific Bell and Atlantic Richfield Company (ARCO). He also is a retired U.S. Air Force Colonel and has served as acting Deputy Assistant Secretary of Defense (Health Affairs). He also is a fellow of the Aerospace Medical Association, the American College of Preventive Medicine, the American College of Physician Executives and the International Academy of Aviation and Space Medicine.

Dr. Bisgard has served on the board of directors at Trilinear, Inc., the Washington Business Group on Health, the Epidermolysis Bullosa Medical Research Foundation and Sentinel Health Partners. He also previously served on the Institute of Medicine's Committee on the Quality of Health Care in America, which published Crossing the Quality Chasm: A New Health System for the 21st Century.

Dr. Bisgard has bachelor's and medical degrees from Northwestern University and a Master of Public Health from the Harvard School of Public Health. He is a resident of Bellevue, Washington.

"I am impressed with American Healthways' focus on improving health and reducing health care costs and am looking forward to lending my perspective to its ongoing efforts to bridge the gaps in our health care system and help more people live healthier lives," Dr. Bisgard said. "American Healthways has the opportunity to make many of the recommendations of the Institute of Medicine's report, Crossing the Quality Chasm, come to fruition."

The appointments of Mr. Ballantine and Dr. Bisgard increase the number of Company directors to eight, and the number of outside directors to six. They join current directors Martin J. Koldyke, founder and general partner of Frontenac Company; Dr. C. Warren Neel, executive director of the University of Tennessee Corporate Governance Center; William C. O'Neil, Jr., former chairman, president and chief executive officer of ClinTrials, Inc.; Frank A. Ehmann, former president and chief operating officer of American Hospital Supply Corporation; Henry D. Herr, former executive vice president and chief financial officer of American Healthways; and Mr. Cigarran.

American Healthways (AMHC) is the nation's leading and largest provider of specialized, comprehensive disease management and care enhancement services to health plans, physicians, medical management organizations and hospitals. The Company's programs have been reviewed and approved for clinical excellence by Johns Hopkins and have been certified or accredited by the National Committee on Quality Assurance (NCQA), the Joint Commission on Accreditation of Health Care Organizations (JCAHO), and the American Accreditation Healthcare Commission (URAC). American Healthways has contracts to provide disease and care management programs to more than 770,000 equivalent lives in all 50 states, the District of Columbia, Puerto Rico and Guam. The Company also operates diabetes management programs in hospitals nationwide. For more information visit www.americanhealthways.com.