Providence Service Corporation Provides Procurement Update

TUCSON, Ariz., June 19 /PRNewswire-FirstCall/ -- The Providence Service
Corporation (Nasdaq: PRSC) today released preliminary results of its recent
government procurement cycle, including results for its LogistiCare
subsidiary, which is now nearly complete.
"In this challenging economic environment that has many state legislatures
still in session haggling over budgets, we believe our home and community
based service model should be even more in demand," said Fletcher McCusker,
Chairman and CEO. "While LogistiCare saw significant competition this spring,
we are pleased to report that only one small contract was not renewed and
additional wins will more than offset the lost revenue. In our core social
services segment, with approximately $310M of annual revenue, we are
forecasting 100% contract renewals. Because various state legislatures have
not yet completed their budget negotiations, our social services procurement
cycle will extend into the third quarter."
In the 2008 procurement cycle for the Company's managed transportation
segment, contracts were renewed in Connecticut, Delaware, Missouri, Nevada and
Oklahoma. To date only a $10 million contract in Kentucky was not renewed.
As previously announced, Connecticut renewed at $18 million per year for five
years, up from $15 million annually, and Missouri renewed their $30 million
contract for five years. Additionally, Delaware, Nevada and Oklahoma renewed
contracts at annual rates of $9.7 million for two years (up from $9 million),
$9 million for four years and $25 million for four years, respectively. New
business won by LogistiCare to date in 2008 aggregates to over $10 million
annually.
As a result of ongoing budget negotiations at various state legislatures,
cost of living increases which are normally negotiated at this time of year in
our social services segment have been delayed. New business added includes an
$18 million annual contract in Texas and approximately $1 million in
California. With legislatures still in session, the Company does not expect
total revenue visibility for the 2008-2009 procurement cycle until the third
quarter of 2008.
About Providence
Providence Service Corporation, through its owned and managed entities,
provides home and community based social services and non-emergency
transportation services management to government sponsored clients under
programs such as welfare, juvenile justice, Medicaid and corrections.
Providence does not own or operate beds, treatment facilities, hospitals or
group homes, preferring to provide services in the client's own home or other
community setting. The Company provides a range of services to over 80,000
clients through approximately 1,030 contracts at March 31, 2008, with an
estimated seven million individuals eligible to receive the Company's
non-emergency transportation services related to its LogistiCare operations.
Combined, the Company has a nearly $1 billion book of business with managed
entities.
Certain statements herein, such as any statements about Providence's
confidence or strategies or its expectations about revenues, results of
operations, profitability, earnings per share, contracts, collections, award
of contracts, acquisitions and related growth, growth resulting from
initiatives in certain states, effective tax rate or market opportunities,
constitute "forward-looking statements" within the meaning of the private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve a number of known and unknown risks, uncertainties and other factors
which may cause Providence's actual results or achievements to be materially
different from those expressed or implied by such forward-looking statements.
These factors include, but are not limited to, reliance on government-funded
contracts, risks associated with government contracting, risks involved in
managing government business, legislative or policy changes, challenges
resulting from growth or acquisitions, adverse media and legal, economic and
other risks detailed in Providence's filings with the Securities and Exchange
Commission, including its Form 10-K for the year ended December 31, 2007.
Words such as "believe," "demonstrate," "expect," "estimate," "anticipate,"
"should" and "likely" and similar expressions identify forward-looking
statements. Readers are cautioned not to place undue reliance on those
forward-looking statements, which speak only as of the date the statement was
made. Providence undertakes no obligation to update any forward-looking
statement contained herein.
SOURCE The Providence Service Corporation

Fletcher McCusker, Chairman and CEO, or Kate Blute, Director of Investor and
Public Relations, both of The Providence Service Corporation, +1-520-747-6600;
or Alison Ziegler of Cameron Associates, +1-212-554-5469