Exhibit 99.1

NEWS

Catasys, Inc. Reports First Quarter Results –

26% Growth in Healthcare Services Quarterly Enrollment

Los Angeles, California — May 16, 2013 — Catasys, Inc. (OTCQB: CATS), provider of proprietary health management services to health insurers and employers, today announced financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Highlights:

Results of Operations

For the first quarter of fiscal 2013 Catasys reported that total revenues increased 45% to $135,000 compared with $93,000 for the same period last year. Increased revenues are a result of a 26% increase in enrollment growth (on an equal number of lives) compared with the same quarter in 2012. The Company reported a loss from operations before taxes of $(1,745,000), or $(0.15) per share, for the first quarter of 2013, compared with a loss of $(2,796,000), or $(0.83) per share, in the first quarter last year. Net income, including a change in fair value of warrant liability of $4,360,000 and provision for income taxes, was $2,613,000 or $0.22 per share, compared with a net loss of $(3,373,000), or $(0.99) per share, in the first quarter last year.

Total operating expenses for the first quarter of 2013 were $1,880,000, down 35%, or $1,009,000, compared with the first quarter in 2012. This decrease in expenses is primarily a result of a reduction in salaries and benefits and outside services.

Financial statements have been restated to reflect the 10-for-1 reverse stock split that occurred on May 6, 2013.

“I am pleased that we continue to show improved financial growth, and equally important, continue to grow our client base of insurance companies,” commented Rick Anderson, President and COO. “We believe that this expansion will lead to continued financial growth. The signing of our first national insurer was an important milestone and, we believe, is a signpost of things ahead.

“While health plans are under increasing pressure to reduce costs -- and healthcare reform intensifies that pressure -- we expect to continue to play a small but significant role in helping insurers to manage costs by delivering >50 percent cost reduction in total healthcare costs for health plan members who have enrolled in our program,” Anderson concluded.

Healthcare Services -– Overview

OnTrak Program

Catasys’ OnTrak program – contracted with a growing number of health insurers – is designed to improve member health and at the same time lower costs to the insurer by utilizing patient centric treatment that integrates evidence based medical and psychosocial interventions along with care coaching in a 52-week outpatient program. OnTrak is currently improving member health and, at the same time, is demonstrating with several health insurers impressive results. These results are evidenced by reduced inpatient and emergency department utilization driving a more than 50 percent reduction in total health care costs for enrolled members.

About Catasys, Inc.

Catasys, Inc. provides specialized health management services to health plans and employers through a network of licensed and company managed health care providers. The Catasys substance dependence program improves member health, thereby lowering overall costs. The proprietary program addresses substance dependence as a chronic disease, focusing on the whole health of the member. The program delivers integrated medical and psychosocial interventions in combination with long-term care coaching. For further information, please visit www.catasyshealth.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 our control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history, our inability to execute our business plan and achieve profitability, lack of outcomes and statistically significant formal research studies, difficulty enrolling members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry and our liquidity. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plan,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov.Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

IR CONTACT:

Terri MacInnis, Dir. of Investor Relations          

Bibicoff + MacInnis, Inc.  

818.379.8500 terri@bibimac.com   

CATASYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)