News Release – 06/13/2007

ValueOptions Awarded Contract to Manage Substance Abuse Services in Kansas

Norfolk, Va.—June 13, 2007—ValueOptions®, Inc., the nation’s largest independent behavioral health care company, has been awarded the Substance Abuse Prepaid Inpatient Health Plan (SA-PIHP) contract by the Kansas Department of Social and Rehabilitation Services. ValueOptions® will manage substance abuse services provided through Medicaid as well as through Substance Abuse Prevention and Treatment block grant funds. The Division of Addiction and Prevention Services will supervise the contract, which takes effect July 1, 2007, and covers some 280,000 Medicaid beneficiaries as well as persons eligible for block grant services. The contract runs through June 30, 2009. In addition, the contract includes three one-year optional renewal periods. “ValueOptions® as an organization is deeply committed to providing high-quality, attentive and culturally sensitive behavioral health care and treatment to individuals and families in need,” said Jeff Emerson, ValueOptions® Executive Vice President, Public Sector. “As we develop policies and procedures and contract a provider network in Kansas, ValueOptions® will coordinate with the existing provider community and Regional Alcohol and Drug Assessment Centers in order to ensure a smooth transition into the new contract.” “We are pleased and honored that Kansas has chosen ValueOptions® to manage the state’s substance abuse services,” said Nancy Lane, ValueOptions® Chief Operating Officer, Public Sector. “We look forward to building a strong relationship of trust with the Kansas Department of Social and Rehabilitation Services as well as with consumers and providers statewide.” Within Kansas, ValueOptions® will do business as ValueOptions® of Kansas, Inc., and will create a new engagement center in Topeka to serve the state’s substance abuse community. The company expects to employ about 30 clinical and administrative staff to supplement services provided through ValueOptions’® existing administrative support structure nationwide. ValueOptions® was awarded the Kansas SA-PIHP contract following a competitive RFP process that began in November, 2006. About ValueOptions® ValueOptions®, the nation’s largest independent behavioral health care company, covers 24 million individuals through a variety of direct contracts with health plans, employers, as well as through state and county agencies. ValueOptions® is a national managed care company that specializes in disease management for all mental health and chemical dependency diagnoses. About Public Sector Operations ValueOptions® provides managed behavioral care solutions to the federal government as well as to state and local governments. In partnership with the federal government, ValueOptions® provides high quality, accessible and cost-effective mental health and substance abuse services under the Department of Defense TRICARE benefits program. For state and local governments ValueOptions® leads the nation in successfully managing directly contracted, publicly funded behavioral healthcare programs. Through partnerships with states, counties, regional agencies and provider organizations, ValueOptions® delivers quality behavioral health care services to millions of consumers nationwide.