“However, it surmises Phantogram is clear stereoscopy recalls that our customers and our business are beingaffected by the national economy. We have previously discussed small contractlosses in fiscal 2008, contract renegotiations and the contract termination atthe end of calendar 2008, which represent an aggregate reduction in annualizedrevenue of approximately $70 million. In addition, since the end of fiscal 2008,the effects of the current economic environment have included – and we expectwill continue to include in coming months – the negative impact of higherunemployment on billed domestic commercial lives, a lengthening sales cycle andcontinuing budgetary pressures on our customers. “Despite this environment, we have continued to progress on our three centralgrowth initiatives of increasing our domestic commercial business, expanding ouraddressable markets and enhancing our value proposition, all three of whichcontribute to our long-term growth potential.

Our progress reflects the market`srecognition of our ability to improve health and well-being and reduce costs,which we believe will position us well irrespective of the outcome of thepending debate on health care reform phantograms . “We will continue to focus on strengthening our position of market leadershipfor both the short and long term stereoscopic photography . We have optimized our capability to lead themarket`s move to fully integrated solutions focused on improving well-being stereo photography . Wealso have completed a restructuring and added talent to enhance our ability toleverage both our near-term opportunities and our strategic initiatives to drivefuture global growth stereoscopic . We remain confident of Healthways` continuing prospectsfor generating long-term growth and increasing stockholder value.” Conference CallHealthways will hold a conference call to discuss this release today at 5:00p.m Eastern time.

Investors will have the opportunity to listen to theconference call live over the Internet by going to andclicking Investor Relations, or by going to, at least 15minutes early to register, download and install any necessary audio software.For those who cannot listen to the live broadcast, a telephonic replay will beavailable for one week at 719-457-0820, code 1567040, and the replay will alsobe available on the Company`s web site for the next 12 months phantogram music . Safe Harbor ProvisionsThis press release contains forward-looking statements, including ourexpectations for future periods, that are based upon current expectations, aresubject to the finalization of the Company`s calendar year end financial andaccounting procedures, and involve a number of risks and uncertainties 3d glasses . Thoseforward-looking statements include all statements that are not historicalstatements of fact and those regarding the intent, belief or expectations of theCompany, including, without limitation, all statements regarding the Company`sfuture earnings and results of operations stereoscope . In order for the Company to utilizethe “safe harbor” provisions of the Private Securities Litigation Reform Act of1995, investors are hereby cautioned that the following important factors, amongothers, may affect these forward-looking statements stereo viewers .

Consequently, actualoperations and results may differ materially from those expressed in theseforward-looking statements phantogram band . The important factors include but are not limitedto: the impact of any new or proposed legislation, regulations andinterpretations relating to the Medicare Prescription Drug, Improvement, andModernization Act of 2003, including the potential expansion to Phase II forMedicare Health Support Programs and any legislative or regulatory changes withrespect to Medicare Advantage; the Company`s ability to accurately forecastperformance and the timing of revenue recognition under the terms of itscontracts with customers ahead of data collection and reconciliation in order toprovide forward-looking guidance; the Company`s ability to reach mutualagreement with the Centers for Medicare and Medicaid Services (CMS) with respectto results necessary to achieve success as defined under Phase I of MedicareHealth Support; the Company`s ability to anticipate the rate of marketacceptance of Health and Care Support solutions in potential internationalmarkets; the ability of the Company to accurately forecast the costs necessaryto implement the Company`s strategy of establishing a presence in internationalmarkets; the risks associated with foreign currency exchange rate fluctuationsand the Company`s ability to hedge against such fluctuations; the Company`sability to retain existing health plan customers if they decide to take programsin-house or are acquired by other health plans which already have or are notinterested in Health and Care Support programs; the risks associated with asignificant concentration of the Company`s revenues with a limited number ofcustomers; the Company`s ability to sign and implement new contracts for Healthand Care Support solutions; the Company`s ability to effect cost savings andclinical outcomes improvements under Health and Care Support contracts and reachmutual agreement with customers with respect to cost savings, or to effect suchsavings and improvements within the time frames contemplated by the Company; theability of the Company to achieve estimated annualized revenue in backlog in themanner and within the timeframe the Company expects, which is based on certainestimates regarding the implementation of the Company`s services; the ability ofthe Company and/or its customers to enroll participants in the Company`s Healthand Care Support programs in a manner and within the timeframe anticipated bythe Company; the ability of the Company`s customers to provide timely andaccurate data that is essential to the operation and measurement of theCompany`s performance under the terms of its contracts; the Company`s ability tofavorably resolve contract billing and interpretation issues with its customers;the Company`s ability to service its debt and make principal and interestpayments as those payments become due; the Company`s ability to integrateacquired businesses or technologies into the Company`s business; the impact ofany impairment of the Company`s goodwill or other intangible assets; theCompany`s ability to develop new products and deliver outcomes on thoseproducts; the Company`s ability to renew and/or maintain contracts with itscustomers under existing terms or restructure these contracts on terms thatwould not have a material negative impact on the Company`s results ofoperations; the Company`s ability to obtain adequate financing to provide thecapital that may be necessary to support the Company`s operations and to supportor guarantee the Company`s performance under new contracts; the ability of theCompany`s customers to maintain the number of covered lives enrolled in theplans during the terms of the agreements; unusual and unforeseen patterns ofhealthcare utilization by individuals with diabetes, cardiac, respiratory and/orother diseases or conditions for which the Company provides services; the impactof litigation involving the Company and/or its subsidiaries; the risksassociated with changes in macroeconomic conditions, which may reduce the demandand/or the timing of purchases for the Company`s services from customers orpotential customers, reduce the number of covered lives of the Company`sexisting customers, restrict the Company`s ability to obtain additionalfinancing, or impact the availability of credit under the Company`s creditagreement; and other risks detailed in the Company`s Annual Report on Form 10-Kfor the fiscal year ended August 31, 2008 and other filings with the Securitiesand Exchange Commission antique stereo viewers . The Company undertakes no obligation to update orrevise any such forward-looking statements stereoscopic software . About HealthwaysHealthways is the leading provider of specialized, comprehensive solutions tohelp millions of people maintain or improve their health and well-being and, asa result, reduce overall costs stereoscopic view . Healthways` solutions are designed to helphealthy individuals stay healthy, mitigate and slow the progression of diseaseassociated with family or lifestyle risk factors and promote the best possiblehealth for those already affected by disease. Our proven, evidence-basedprograms provide highly specific and personalized interventions for eachindividual in a population, irrespective of age or health status, and aredelivered 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, offeringconvenient access to individuals who seek health services outside of, and inconjunction with, the traditional healthcare system . For more information,please visit HEALTHWAYS, INC stereoscopic vision . CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except per share data) Three Months Ended November 30, 2008 2007 Revenues$185,403$175,819 Cost of services (exclusive of depreciation and amortization of $8,888 and $7,810, respectively, included below) 129,048 124,186 Selling, general and administrative expenses 17,94516,848Depreciation and amortization12,16710,458 Operating income 26,24324,327Interest expense 5,096 5,341Income before income taxes 21,14718,986Income tax expense 8,566 7,803Net income$12,581 $11,183 Earnings per share:Basic $0.37 $0.31 Diluted $0.37 $0.30 Weighted average common shares and equivalents:Basic33,61235,717Diluted34,06837,690Healthways, Inc.Statistical Information (In thousands)(Unaudited)November 30, November 30, 2008 2007Operating StatisticsDomestic commercial available lives 195,000 183,400 Domestic commercial billed lives32,70026,700Annualized revenue in backlog$31,900 $51,000Healthways, Inc 3d stereo software . Reconciliation of Non-GAAP Measures to GAAP Measures (Unaudited) Reconciliation of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) to Net Income (in thousands) Twelve MonthsThree Months Three MonthsEndedEnded EndedNovember 30, 2008November 30, November 30, 20082007 EBITDA (4) $164,584$38,410$34,785 Interest expense20,6805,0965,341Income tax expense38,5048,5667,803Depreciation and amortization 49,18812,167 10,458 Net income $56,212 $12,581$11,183 (4) EBITDA is a non-GAAP financial measure . The Company excludes interest, taxes, depreciation and amortization from this measure and provides EBITDA to enhance investors’ understanding of the Company’s operating performance and its capacity to fund capital expenditures and working capital requirements. The Company believes it is useful to investors to provide disclosures of its operating results on the same basis as that used by management.