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 service 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.