Healthways Signs Services Agreement with HP to Support Growt

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Healthways Signs Services Agreement with HP to Support Company Growth

PALO ALTO, Calif., and NASHVILLE, Tenn., May 26, 2011

HP Enterprise Services and Healthways, Inc. today announced the signing of a 10-year, $380 million applications and technology services outsourcing agreement to support growth and expand value to Healthways’ customers.

With this agreement, HP will provide Applications Development and Applications Management services to further accelerate the transformational development of the well-being improvement company’s applications and technology infrastructure. As a result, Healthways’ mission-critical application, EMBRACE™, will be able to support an increasing volume of customers and increasing market demand for multiparty integration.

“With a primary goal of healthier populations in private- and public-sector programs, EMBRACE experiences increased membership that requires added functionality,” said Ben R. Leedle, president and chief executive officer, Healthways Inc. “HP’s deep healthcare expertise offered the best opportunity to enhance an already powerful platform with greater scalability and sustainable timely innovation at a lower cost for us.”

To support the EMBRACE environment, HP will utilize its information technology infrastructure library (ITIL) based enterprise service management platform to provide a comprehensive and integrated solution.

Healthways will have greater flexibility and cost efficiencies by utilizing the HP Best Shore global delivery footprint for its HP Enterprise Applications Hosting, Server Management, Service Desk, Application Management, Workplace360 services and Network Management services.

“The increased focus on improving health and well-being offers companies like Healthways unique opportunities for continued growth and expansion,” said Sue Arthur, vice president, Healthcare and Life Sciences, HP Enterprise Services. “HP has 45 years of deep vertical experience to partner with companies like Healthways to address complex emerging business challenges effectively while mitigating risk.”

The companies also will expand their relationship for the purpose of identifying and pursuing new opportunities in select government and commercial markets. This relationship will bring together HP’s healthcare applications expertise for private and public sector health insurance programs with Healthways’ expertise in designing and delivering well-being-improvement solutions for domestic and international health plans, employers and governments. As a result, customers will be provided with the opportunity to access new and innovative advances in well-being solutions.

About Healthways Inc.

Healthways Inc. is the leading provider of specialized, comprehensive solutions to help millions of people maintain or improve their health and well-being and, as a result, reduce overall costs. Healthways’ solutions are designed to help healthy individuals stay healthy, mitigate or eliminate lifestyle risk factors that can lead to disease and optimize care for those with chronic illness. The company’s 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 and a national Fitness Center Network, offering convenient access to individuals who seek health services outside of, and in conjunction with, the traditional healthcare system. More information about Healthways (NASDAQ: HWAY) is available at www.healthways.com.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP (NYSE: HPQ) is available at http://www.hp.com.