Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On September 15, 2009, Hythiam, Inc. (the "Company") received a letter from The NASDAQ Stock Market indicating that because the bid price of the Company's common stock had closed below the minimum $1.00 per share threshold as set forth in NASDAQ Listing Rule 5450(a)(1) for the prior 30 consecutive business days, the Company has been provided 180 calendar days, or until March 15, 2010, to regain compliance with the minimum bid price requirement. The most recent notice does not impact the Company's listing on NASDAQ at this time. If at any time during this grace period the bid price of the Company's security closes at $1.00 per share or more for a minimum of ten consecutive business days, the Company will regain compliance with the minimum bid price requirement.

On September 18, 2009, the Company issued a press release announcing its receipt of the letter from The NASDAQ Stock Market. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated into this Item 3.01 by this reference.

Unless otherwise required by law, we disclaim any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statements are based.