Healthways, Blue Cross Blue Shield of Massachusetts Expand Strategic Partnership

Collaboration to make additional Care Support^SM Services Available to Members

NASHVILLE, Tenn.--(BUSINESS WIRE)--Building on six years of successful disease management initiatives, Healthways, Inc. (NASDAQ:HWAY) and Blue Cross Blue Shield of Massachusetts (BCBSMA) today announced they are expanding their collaborative efforts to deliver industry-leading support to the health plan’s chronically ill members. Under the agreement, Healthways will add coronary artery disease (CAD) and chronic obstructive pulmonary disease (COPD) Care Support programs to the interventions currently offered to BCBSMA members.

“We are expanding our relationship with Healthways because of the positive results we have achieved to date.”

“BCBSMA firmly believes that disease management programs enhance our members’ quality of life,” said David Brumley, Medical Director for Health Management at BCBSMA. “We are expanding our relationship with Healthways because of the positive results we have achieved to date.”

The agreement, which took effect March 1, 2007, will increase the number of BCBSMA members receiving Healthways Care Support services to approximately 328,000. In addition to CAD and COPD, BCBSMA members will continue to have access to Healthways’ diabetes, congestive heart failure, chronic kidney disease, end stage renal disease, depression and impact conditions Care Support programs.

“Blue Cross Blue Shield of Massachusetts has shown exceptional leadership in its commitment to improve the health of its members through Healthways’ proven Care Support programs,” said Healthways President and CEO Ben R. Leedle, Jr. “We are pleased with this expansion of our strategic partnership with BCBSMA and we look forward to continued collaboration in the years to come.”

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 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 1A, and Part II, Item 7, of Healthways’ Annual Report on Form 10-K for the fiscal year ending August 31, 2006. Consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. Healthways undertakes no obligation to update or revise any such forward-looking statements.

About Blue Cross Blue Shield of Massachusetts

Blue Cross Blue Shield of Massachusetts (www.bluecrossma.com) was founded 69 years ago by a group of community-minded business leaders. Today, headquartered in Boston, BCBSMA provides coverage to 3 million members. Blue Cross Blue Shield of Massachusetts believes in rewarding doctors and hospitals for delivering safe and effective care, and empowering patients to take more responsibility, become more educated consumers and become stronger partners with their doctors. Blue Cross Blue Shield of Massachusetts is an independent licensee of the Blue Cross Blue Shield Association.

About Healthways

Healthways is the leading provider of specialized, comprehensive Health and Care Support^SM solutions to help millions of people maintain or improve their health and, as a result, reduce overall healthcare costs. Healthways' programs are designed to help healthy individuals stay healthy, mitigate and slow the progression of disease associated with family or lifestyle risk factors and promote the best possible health for those already affected by disease. Our proven, evidence-based programs provide highly specific and personalized interventions for each individual in a population, irrespective of age or health status, and are delivered to consumers by phone, mail, internet and face-to-face interactions, both domestically and internationally. Healthways also provides a national, fully accredited complementary and alternative Health Provider Network, offering convenient access to individuals who seek health services outside of, and in conjunction with, the traditional healthcare system. For more information, please visit http://www.healthways.com/.