Horizon Blue Cross Blue Shield of New Jersey to Conduct Commercial Evaluation of Hythiam's PROMETA(R) Protocols.

Outcomes Measured at 90 Days After Which Initial Reimbursement May Commence

LOS ANGELES -- Hythiam, Inc. (Nasdaq:HYTM), a healthcare services management company that licenses the PROMETA([R]) treatment protocols designed to treat alcohol, methamphetamine and cocaine dependence, announced today that Horizon Blue Cross Blue Shield of New Jersey will conduct a commercial evaluation of the PROMETA protocols as a central component for substance dependence disease management. Horizon BCBSNJ has a total membership in excess of 3.2 million lives. 50 patients will receive the PROMETA protocols for alcoholism, stimulants, and alcoholism and stimulants. Outcomes will be measured at 90 days after which initial reimbursement may commence.

"Hythiam has been very open to having us evaluate PROMETA based upon the specific needs of our patients and customers," said Dr. Christopher Valerian, Executive Medical Director, Quality and Clinical Innovations, Horizon BCBSNJ. "Substance dependent patients tend to be high utilizers of a spectrum of health care services, and the chronic relapsing nature of this disease tends to result in significant time off from work. A successful result in this pilot will improve the quality of care that we provide to our membership. Additionally, PROMETA will be evaluated for increases in treatment retention, reduction of a patient's time spent away from the workplace, and reduction of patient utilization of emergency medical care."

According to the Substance Abuse and Mental Health Services Administration (SAMHSA), substance dependence costs employers $81 billion in lost productivity each year and studies have shown that substance dependent workers function at about 67% of their capacity. Employees who are substance dependent cost their employers twice as much in medical claims as employees who are not substance dependent. According to a National Association of Counties (NACO) survey, up to 70% of all emergency department visits are related to substance dependence.

"We are pleased that Horizon Blue Cross Blue Shield of New Jersey has decided to evaluate PROMETA for its substance dependent patient population," said Terren Peizer, Hythiam's Chairman and CEO. "We feel confident that following a successful pilot, PROMETA will represent a paradigm shift for the treatment of substance dependence through managed care. Providers will have a tool that allows them to treat dependent individuals on an outpatient basis, thereby reducing the capacity and resource constraints that accompany in-patient modalities. For the employer and employee, PROMETA will demonstrate value through an increase in productivity and reduced time away from work."

About Horizon Blue Cross Blue Shield of New Jersey

Horizon Blue Cross Blue Shield of New Jersey, with headquarters in Newark, is New Jersey's largest health insurer, providing coverage to more than 3.2 million people. Horizon BCBSNJ's company Web site is located at www.HorizonBlue.com. Horizon BCBSNJ is an independent licensee of the Blue Cross Blue Shield Association.

About PROMETA([R])

Hythiam's PROMETA([R])treatment protocols are designed for use by healthcare providers seeking to treat individuals diagnosed with dependencies to alcohol, cocaine or methamphetamine, as well as combinations of these drugs. The PROMETA treatment protocols comprise nutritional supplements, FDA-approved oral and IV medications used off-label and separately administered in a unique dosing algorithm, as well as psychosocial or other recovery-oriented therapy chosen by the patient and his or her treatment provider. As a result, PROMETA represents an innovative approach to managing alcohol, cocaine or methamphetamine dependence that is designed to address physiological, nutritional and psychosocial aspects of the disease, and is thereby intended to offer patients an opportunity to achieve sustained recovery. To learn more, please visit www.prometainfo.com.

About Hythiam, Inc.

Hythiam([R]) is a healthcare services management company focused on delivering solutions for those suffering from alcoholism and other substance dependencies. Hythiam researches, develops, licenses and commercializes innovative physiological, nutritional and behavioral treatment protocols that seek to address substance dependence. Additionally, Hythiam provides proprietary administrative services to assist physicians and facilities with staff education, training, marketing and outreach support, and outcomes tracking for data analysis. For further information, please click on www.hythiam.com.

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control, that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history and lack of statistically significant formal research studies, the risk that treatment protocols might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the healthcare industry; and additional risks factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at http://www.sec.gov.