Hythiam Licenses PROMETA Protocols to Largest Private Chemical Dependency Services Provider in the Southwest — The Right Step; PROMETA™ Seen as Catalyst to Expand Outpatient Services

Business Wire, August 15, 2006

LOS ANGELES -- Hythiam, Inc. (NASDAQ:HYTM), a healthcare services management company licensing the PROMETA(TM) physiological protocols designed to treat alcohol, methamphetamine and cocaine dependence, announced today that it has entered into a licensing agreement with The Right Step (TRS), the largest private chemical dependency treatment services provider in the Southwest. Headquartered in Houston, TRS has 23 locations throughout the Southwest. Hythiam has initially licensed the use of the PROMETA Protocols to The Right Step's Houston facility.

"The Right Step has built a reputation for delivering quality substance dependence treatment offerings," said Terren Peizer, Hythiam's Chairman and CEO. "We are pleased to be affiliated with them and look forward to a long-term relationship whereby the Prometa protocols can assist their medical staff in addressing certain physiological aspects of addiction."

"Our mission is to reach as many substance dependent lives as possible by delivering a range of treatment options that are affordable and appropriate for each individual life we care for," said George Joseph, The Right Step's CEO. "The Prometa protocols allow us to complement our current continuum of care in order to more efficiently deal with all aspects of substance dependence and recovery, including the physiological changes that are caused by this disease. As a result, we hope to provide access to care to more individuals who cannot commit to a longer in-patient stay. With Prometa, we want to offer the ability to better treat individuals who present physiological symptoms of dependence on an out-patient basis."

Affiliated with TRS since 1994, George Joseph took a single site extended care facility and designed and implemented a multifaceted, comprehensive treatment network that now encompasses 23 treatment locations in Texas, Louisiana, and New Mexico. In 1999, he captured honors as the Houston and State of Texas Counselor of the Year, presented by the Texas Association of Addiction Professionals. And in 2000, he won the highest honor given to a counselor in our nation, the 2000 Lora Roe Memorial Counselor of the Year, awarded by the National Association of Alcoholism and Drug Abuse Counselors (NAADAC).

About Right Step

The Right Step is the largest private chemical dependency treatment services provider in the Southwest, with 23 locations throughout Texas, Louisiana and New Mexico. The Right Step offers a full continuum of care from detoxification and residential treatment through intensive outpatient and transitional living. Cash and most private insurance are accepted. For more information, location listings, treatment details and payment summaries, please visit www.rightstep.com.

About PROMETA(TM)

Hythiam's PROMETA(TM) 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. For further information, please click on 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, 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.