Hythiam, Inc. Announces David E. Smith, M.D., as Senior Vice President of Medical Affairs

Business Wire, Feb 10, 2004

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Feb. 10, 2004

Hythiam, Inc. (AMEX: HTM), a healthcare services management company that focuses on alcohol and drug addiction detoxification and central nervous system (CNS) stabilization in order to prevent craving and relapse, today announced that David E. Smith, M.D., has joined the company as the Senior Vice President of Medical Affairs. In his new role at Hythiam, Dr. Smith will be responsible for leading all aspects of clinical research and development, chairing the company's Clinical Advisory Board and serving on the company's senior management team.

"Hythiam is very pleased to welcome Dr. Smith, whose distinguished medical career will enhance the company's depth of expertise in the addiction treatment field," said Hythiam's Chairman and Chief Executive Officer, Terren S. Peizer. "His broad knowledge of addiction treatment and research, combined with his dedication to the patient community, will be invaluable as the company begins to commercialize its novel HANDS Treatment Protocol for the treatment of addictive disorders."

Dr. Smith is recognized as a national leader in the areas of addiction treatment, the psychopharmacology of drugs, new research strategies in the management of drug abuse problems, and proper prescribing practices for physicians. He is the Founder and President of the Haight Ashbury Free Clinic in San Francisco, which is a leader in the management of overdose and treatment of complications of alcoholism and drug abuse, providing a wide range of free medical services for 50,000 patient visits each year at 22 facilities, as well as conducting recovery training and research.

"Hythiam's treatment protocol is on the forefront of addiction medicine," said Dr. Smith. "I am excited to become part of a team that will provide healthcare professionals with a meaningful new tool that can significantly improve the recovery process by treating the drug induced dysfunction in the reward system of the brain to reduce withdrawal symptoms and cravings and enhance cognitive function."

Dr. Smith is a Fellow and Past President of the American Society of Addiction Medicine and the California Society of Addiction Medicine. His current appointments include Medical Director of the California State Department of Alcohol and Drug Programs, Medical Director of the California Collaborative Center for Substance Abuse Policy Research and Medical Consultant to The Betty Ford Center.

Dr. Smith is the Founder and Publisher of the Journal of Psychoactive Drugs and the co-editor of the International Addictions Infoline newsletter. In addition, he has authored or co-authored 26 books, written over 340 journal articles, edited 28 journals, and been the technical consultant for 28 drug abuse-related films. Dr. Smith holds a Bachelor's degree from the University of California, Berkley, and an M.S degree in Pharmacology and an M.D. degree from the University of California, San Francisco, where he is currently an Adjunct Professor.

Alcohol and drug dependence are one of the nation's leading public health issues, with an estimated 22 million Americans suffering from substance abuse or dependence due to drugs, alcohol or both according to the National Survey on Drug Use and Health. Despite the large and growing population of sufferers, there are few effective treatments available.

About HANDS(TM)

Hythiam's HANDS Treatment Protocol(TM) is designed to treat addictions to alcohol, cocaine, and other addictive stimulants -- as well as combinations of these drugs. Hythiam's treatment protocols focus on brain stabilization by restoring neurochemical imbalances and increasing cognitive function. Unlike current practices for withdrawing addicted patients from alcohol, cocaine, or other addictive stimulants, the HANDS protocols are completed within 2-3 consecutive days of inpatient treatment, eliminate the use of sedating medications, require no tapering or washout period, significantly reduce or eliminate withdrawal symptoms and have substantially higher completion rates. Most importantly to patients, the HANDS protocols are anti-craving, resulting in the elimination of craving, a major factor in relapse. By providing a more beneficial treatment of the physiological component of the disease that eliminates craving, HANDS protocols offer patients an improved chance for recovery.

For more information, please visit http://www.hythiam.com

About Hythiam

Hythiam, Inc. is a healthcare services management company, formed for the purpose of researching, developing, licensing, and commercializing innovative technologies to improve the treatment of alcoholism and drug addiction. Hythiam's technology is focused on treating addiction at the source -- the brain. Hythiam's proprietary, patented and patent-pending treatment protocols are designed to treat addiction by restoring neurological function.

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, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the healthcare industry; and additional risks discussed in the "Risk Factors" set forth in Item 5 of Part II of the company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 13, 2003.